United Airlines Holdings Inc. (NASDAQ:UAL)

Asset Turnover

The reported and adjusted total asset turnover ratios exhibit a clear upward trend from 2020 to 2024. The reported ratio rises from 0.26 in 2020 to 0.77 in 2024, indicating improving efficiency in asset utilization. The adjusted figures follow a very similar pattern, starting at 0.27 and reaching 0.77, reinforcing the conclusion of steadily enhanced asset productivity.

Current Ratio

Both reported and adjusted current ratios show a declining trend over the observed period. The reported current ratio decreases from 1.16 in 2020 to 0.81 in 2024, while the adjusted ratio falls from 1.25 to 0.95. This decline suggests a gradual reduction in short-term liquidity and possibly a tighter working capital position.

Debt to Equity

The reported debt to equity ratio initially surges from 4.75 in 2020 to a peak of 7.03 in 2021, and then declines to 2.26 by 2024. The adjusted ratio follows a comparable path, peaking at 3.85 in 2021 before steadily decreasing to 1.55 in 2024. This pattern indicates a high leverage stance early in the period followed by significant deleveraging.

Debt to Capital

Both reported and adjusted debt to capital ratios consistently decline during the period. The reported ratio drops from 0.83 in 2020 to 0.69 in 2024, while the adjusted figures trend downward from 0.74 to 0.61. This reflects a reduction in the proportion of capital financed through debt, contributing to improved financial stability.

Financial Leverage

Financial leverage ratios for both reported and adjusted data demonstrate a marked downward trend. Reported financial leverage decreases from 9.99 in 2020 to 5.84 in 2024, and adjusted leverage falls from 5.03 to 3.41 over the same period. This reduction suggests a strengthening equity base relative to total assets and lower reliance on debt financing.

Net Profit Margin

The net profit margin shows significant improvement, moving from negative figures in 2020 and 2021 to positive margins thereafter. Reported margins improve from -46.04% in 2020 to 5.52% in 2024, and adjusted margins increase from -53.15% to 8.08%. This shift implies a transition from losses to profitability and greater operational efficiency.

Return on Equity (ROE)

ROE follows a strong recovery trend. Reported ROE moves from a deep negative of -118.61% in 2020 to 24.84% in 2024, while adjusted ROE improves from -72.28% to 21.35%. This indicates enhanced profitability and better value generation for shareholders in recent years.

Return on Assets (ROA)

ROA also exhibits positive growth, with reported figures improving from -11.87% in 2020 to 4.25% in 2024, and adjusted ROA increasing from -14.36% to 6.25%. These improvements reflect a more effective use of assets to generate earnings over time.

Operating Revenue

The operating revenue has displayed a strong upward trend over the five-year period. Starting at approximately 15.36 billion USD in 2020, it increased sharply to 24.63 billion USD in 2021. This growth accelerated significantly in subsequent years, reaching 44.96 billion USD in 2022, 53.72 billion USD in 2023, and 57.06 billion USD by the end of 2024. The consistent rise suggests robust growth in the company’s core business activities.

Total Assets

Total assets have shown moderate growth over the analyzed period. Beginning at 59.55 billion USD in 2020, assets increased to 68.18 billion USD in 2021, followed by a slight decline to 67.36 billion USD in 2022. After this, assets resumed growth to 71.10 billion USD in 2023 and further to 74.08 billion USD in 2024. The overall trend indicates a steady expansion of the company’s asset base, although the 2022 dip suggests possible asset optimization or disposal during that year.

Reported Total Asset Turnover

The reported total asset turnover ratio improved markedly from 0.26 in 2020 to 0.36 in 2021, indicating enhanced efficiency in utilizing assets to generate revenue. This efficiency saw a significant leap to 0.67 in 2022 and continued to improve to 0.76 in 2023 and slightly to 0.77 in 2024. The rising trend denotes progressively better asset utilization, reflecting operational efficiency gains in revenue generation relative to total assets.

Adjusted Operating Revenue and Total Assets

Adjusted operating revenue and adjusted total assets mirror the trends observed in their reported counterparts closely. Adjusted operating revenue rose from 16.05 billion USD in 2020 to 24.94 billion USD in 2021 and soared to 45.35 billion USD in 2022, followed by increases to 54.19 billion USD in 2023 and 57.36 billion USD in 2024. Adjusted total assets fluctuated minimally, starting from 59.42 billion USD in 2020, declining slightly to 67.27 billion USD in 2022, and then increased to 74.08 billion USD by 2024. This consistency suggests that underlying operational improvements and asset estimations remain stable across adjusted and reported measures.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio follows the same positive trajectory as the reported ratio, climbing from 0.27 in 2020 to 0.37 in 2021, then a substantial rise to 0.67 in 2022, and further improvements to 0.76 and 0.77 in the subsequent years. This confirms the company's increasing efficiency in leveraging its asset base to drive revenue growth when adjustments are applied.

Current Assets

The current assets increased notably from 14,800 million USD in 2020 to a peak of 21,834 million USD in 2021, followed by a gradual decline in the subsequent years, settling at 18,883 million USD in 2024. This pattern indicates a significant boost in liquidity in 2021, with a tapering off but maintaining relatively high levels compared to 2020.

Current Liabilities

Current liabilities showed a consistent upward trend throughout the period, rising from 12,725 million USD in 2020 to 23,314 million USD in 2024. This steady increase suggests growing short-term obligations, potentially exerting pressure on the company’s liquidity position.

Reported Current Ratio

The reported current ratio exhibited a declining trajectory, rising slightly from 1.16 in 2020 to 1.19 in 2021, then decreasing progressively to 0.81 by 2024. Ratios below 1 in the final two years indicate that reported current liabilities surpass current assets, reflecting potential liquidity challenges.

Adjusted Current Liabilities

Adjusted current liabilities also increased over time, from 11,817 million USD in 2020 to 19,911 million USD in 2024, mirroring the upward trend seen in reported liabilities but consistently showing lower values, suggesting some liabilities were excluded or reclassified in the adjustment.

Adjusted Current Ratio

The adjusted current ratio starts at 1.25 in 2020, peaks at 1.36 in 2021, and then declines steadily to 0.95 by 2024. Unlike the reported ratio, the adjusted ratio remains closer to 1, indicating a less severe liquidity constraint when adjustments are accounted for, albeit still showing a weakening liquidity position towards the end of the period.

The analyzed financial data reveals notable shifts in the leverage and capital structure over the indicated periods.

Total Debt

Total debt increased significantly from 28,311 million USD in 2020 to 35,355 million USD in 2021, reflecting a strategic or operational shift requiring additional borrowing. Thereafter, total debt consistently declined to 28,656 million USD by the end of 2024, suggesting efforts toward debt reduction and improved financial stability.

Stockholders’ Equity

Stockholders' equity showed a declining trend from 5,960 million USD in 2020 to 5,029 million USD in 2021, indicating possible losses or equity withdrawals during that period. However, equity rebounded steadily in subsequent years, reaching 12,675 million USD by 2024, evidencing enhanced profitability, retained earnings growth, or equity injections supporting capital structure reinforcement.

Reported Debt to Equity Ratio

The reported debt to equity ratio surged to a peak of 7.03 in 2021, corresponding with the increase in debt and drop in equity, signifying high leverage and potential financial risk at that point. This ratio decreased progressively to 2.26 by 2024, demonstrating improved equity cushioning relative to debt and a strengthened balance sheet position.

Adjusted Total Debt and Adjusted Stockholders’ Equity

Adjusted total debt followed a similar pattern to reported total debt, rising to 41,063 million USD in 2021 before descending to 33,633 million USD in 2024. Adjusted stockholders’ equity declined slightly between 2020 and 2021 but increased consistently afterward, ultimately reaching 21,696 million USD in 2024. These adjustments likely account for additional financial considerations, providing a broader perspective on leverage and capitalization.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio incremented from 2.87 in 2020 to a high of 3.85 in 2021, then progressively decreased to 1.55 in 2024. This trend aligns with the reported ratios and underscores a sustained movement toward deleveraging and improved financial resilience over the analysis horizon.

Overall, the financial trends indicate a period of heightened leverage and reduced equity in 2021, followed by a strategic deleveraging phase characterized by rising equity and decreasing debt levels. This progression reflects a strengthening capital base and potentially reduced financial risk toward the most recent reporting period.

Total Debt

The total debt showed an initial increase from 28,311 million USD in 2020 to 35,355 million USD in 2021. After this peak, there is a consistent decline over the following three years, reaching 28,656 million USD by the end of 2024, indicating efforts to reduce debt levels post-2021.

Total Capital

Total capital increased steadily over the entire period, starting at 34,271 million USD in 2020 and rising to 41,331 million USD by 2024. This suggests an overall growth in the company’s capital base despite fluctuations in total debt.

Reported Debt to Capital Ratio

The reported debt to capital ratio increased from 0.83 in 2020 to a peak of 0.88 in 2021, reflecting a higher leverage position. Subsequently, the ratio decreased year over year down to 0.69 in 2024, indicating a significant deleveraging trend and improvement in the capital structure.

Adjusted Total Debt

The adjusted total debt followed a similar pattern to total debt but at generally higher levels, starting at 33,909 million USD in 2020, peaking at 41,063 million USD in 2021, and declining to 33,633 million USD in 2024. This adjustment reflects a broader measure of debt obligations but confirms the trend towards debt reduction after 2021.

Adjusted Total Capital

Adjusted total capital increased steadily from 45,713 million USD in 2020 to 55,329 million USD in 2024, mirroring the trend observed in total capital and confirming an expanding capital base under the adjusted metric.

Adjusted Debt to Capital Ratio

This ratio peaked at 0.79 in 2021, then decreased consistently through 2024, reaching 0.61. The decline highlights an improving financial leverage position when considering adjusted figures, further evidencing the company’s efforts to strengthen its balance sheet.

Total Assets

Total assets showed a consistent upward trend over the five-year period, increasing from 59,548 million US dollars in 2020 to 74,083 million US dollars in 2024. The growth was steady, with a slight dip observed in 2022 before resuming its increase in subsequent years.

Stockholders’ Equity

Reported stockholders’ equity fluctuated in the earlier years, declining from 5,960 million US dollars in 2020 to 5,029 million in 2021. Thereafter, it demonstrated a strong recovery and growth, reaching 12,675 million US dollars by 2024. This suggests an improvement in the company’s net worth and retained earnings in later periods.

Reported Financial Leverage

The reported financial leverage ratio exhibited a decreasing trend from 9.99 in 2020 to 5.84 in 2024. This indicates that the company has reduced its reliance on debt relative to equity over time, strengthening its financial stability.

Adjusted Total Assets

Adjusted total assets mirrored the trend of total assets, increasing from 59,417 million US dollars in 2020 to 74,083 million US dollars in 2024. The difference between reported and adjusted total assets appears minimal and consistent, suggesting minor adjustments or reclassifications in asset valuation.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity was consistently higher than the reported figure, starting at 11,804 million US dollars in 2020 and rising steadily to 21,696 million US dollars by 2024. This suggests that the adjustments accounted for significant unrecognized equity components or revaluation of equity items, reflecting a stronger equity base than reported figures alone.

Adjusted Financial Leverage

Adjusted financial leverage showed a clear downward trend from 5.03 in 2020 to 3.41 in 2024. This adjustment further highlights the reduction in leverage when considering a broader or more comprehensive view of equity and assets, indicating improving financial health with lower risk associated with debt financing.

The financial data over the five-year period reveals significant improvement and recovery in both profitability and revenue for the company. The net income experienced a notable turnaround from a substantial loss in 2020 to positive earnings starting in 2022, with continuous growth in subsequent years.

Net Income (Loss)

The net income moved from a loss of $7,069 million in 2020 to a positive figure of $3,149 million in 2024. This marked recovery suggests successful efforts to enhance profitability, especially evident after 2021 when the net loss declined drastically. The transition from losses toward sustained profits reflects improved operational and financial performance.

Operating Revenue

Operating revenue showed a strong upward trend, nearly quadrupling from $15,355 million in 2020 to $57,063 million in 2024. Such growth indicates increasing business activity and effective revenue generation strategies. The steady increase year over year demonstrates recovery and expansion, likely driven by improving market conditions or operational scale.

Reported Net Profit Margin

The reported net profit margin improved markedly from -46.04% in 2020 to 5.52% in 2024. This progression from a negative to a positive margin reflects significant enhancements in operational efficiency and cost management alongside growing revenues. The gradual margin increase signals better profitability relative to revenues over time.

Adjusted Net Income (Loss)

Adjusted net income follows a similar pattern to the reported net income, progressing from a loss of $8,532 million in 2020 to a positive $4,632 million in 2024. This adjusted perspective, which accounts for non-recurring or irregular items, confirms underlying profitability improvement, supporting the view that operational performance strengthened considerably.

Adjusted Operating Revenue

Adjusted operating revenue closely tracks the reported operating revenue, increasing from $16,054 million in 2020 to $57,361 million in 2024. This consistency underscores the reliability of the revenue growth trend, emphasizing the company’s successful expansion efforts and resilience in revenue generation.

Adjusted Net Profit Margin

The adjusted net profit margin rose from -53.15% in 2020 to 8.08% in 2024, indicating a notable margin improvement after removing one-off impacts. The sharper increase in the adjusted margin compared to the reported margin suggests that some extraordinary expenses or losses were present in earlier periods, which have been controlled or eliminated in later years, resulting in stronger normalized profitability.

Overall, the data depicts a recovery trajectory marked by increasing revenues and shifting from significant net losses to profitable results. Margins have improved substantially, reflecting enhanced operational leverage and cost control. The consistency between reported and adjusted figures consolidates the understanding of sustainable earnings growth and business health improvement over the period under review.

The financial data reveals significant improvement in profitability and equity metrics over the five-year period from 2020 to 2024. Initially, the company experienced substantial net losses in 2020 and 2021, with net income (loss) figures of -7069 million US dollars and -1964 million US dollars, respectively. However, this trend reversed starting in 2022, where the company reported a positive net income of 737 million US dollars, followed by increasing profits of 2618 million US dollars in 2023 and 3149 million US dollars in 2024.

Stockholders’ equity exhibited a general upward trend after an initial dip in 2021. The equity decreased from 5960 million US dollars in 2020 to 5029 million US dollars in 2021 but then recovered and increased steadily in subsequent years, reaching 12675 million US dollars by 2024. This recovery indicates the strengthening of the company’s capital base.

Both reported and adjusted return on equity (ROE) followed a trajectory consistent with the net income and equity data. The reported ROE was deeply negative in 2020 (-118.61%) and 2021 (-39.05%), reflecting the net losses and diminished equity. From 2022 onwards, reported ROE became positive and improved substantially to 10.69% in 2022, peaking at 28.08% in 2023 before slightly declining to 24.84% in 2024. The adjusted ROE, accounting for certain adjustments in net income and equity, showed a similar pattern, moving from -72.28% and -19.18% in the first two years to positive values above 18% from 2022 onwards, stabilizing around 21% in the final years.

Adjusted net income mirrors the net income trend but shows a more pronounced recovery post-2021. While the adjusted net losses were higher than reported losses in 2020 and 2021, the adjusted net income turned positive sooner and improved more markedly, reaching 4632 million US dollars by 2024. Adjusted stockholders’ equity also increased more robustly than reported equity, reaching 21696 million US dollars in 2024, which likely reflects a reconciliation of certain accounting treatments or reclassifications that provide a more comprehensive measure of equity.

Overall, the data illustrates a clear turnaround from heavy losses and equity contraction in 2020 and 2021 to profitable operations and strengthening equity positions by 2024. The improvement in ROE—both reported and adjusted—indicates enhanced effectiveness in generating returns for shareholders. The adjusted figures further highlight the underlying operational progress beyond the reported results.

Key observations:

1. Net income shifted from substantial losses in 2020 and 2021 to sustained profitability from 2022 onwards.

2. Stockholders’ equity rebounded and grew steadily after a decline in 2021, indicating capital rebuilding.

3. Both reported and adjusted ROE transitioned from negative to positive, reflecting improved profitability.

4. Adjusted financial measures display stronger recovery implications than reported figures, suggesting favorable adjustments to underlying income and equity.

5. The company’s financial health and operational performance have markedly improved over the five-year period.

Net Income (Loss)

The net income reflects a significant improvement over the period analyzed. Beginning with a substantial loss of -7069 million USD in 2020, the loss narrowed sharply to -1964 million USD in 2021. In 2022, the company turned profitable with a net income of 737 million USD, followed by continued growth to 2618 million USD in 2023 and 3149 million USD in 2024. This trend indicates a recovery and strengthening profitability trajectory.

Total Assets

Total assets experienced an overall increasing trend, rising from 59,548 million USD in 2020 to 74,083 million USD in 2024. Although there was a slight decrease from 2021 (68,175 million USD) to 2022 (67,358 million USD), the general pattern is one of asset growth, suggesting expansions or acquisitions contributing to a larger asset base.

Reported Return on Assets (ROA)

The reported ROA improved steadily from -11.87% in 2020 to 4.25% in 2024. This change corresponds with improving net income and growing total assets, reflecting enhanced operational efficiency and profitability relative to asset size. The movement from negative to positive ROA is particularly notable, indicating a successful turnaround.

Adjusted Net Income (Loss)

Adjusted net income follows a similar pattern to the reported net income but exhibits larger magnitude changes in losses and gains. The adjusted net loss was -8,532 million USD in 2020, improved to -2,043 million USD in 2021, then turned positive reaching 2,495 million USD in 2022. The upward trend continued robustly with 3,605 million USD in 2023 and 4,632 million USD in 2024. These adjustments highlight recognized non-operational or one-time items that impact net income, reinforcing the operational recovery over time.

Adjusted Total Assets

Adjusted total assets closely track reported total assets, increasing from 59,417 million USD in 2020 to 74,083 million USD in 2024. Minor variations suggest adjustments for asset valuations or classification, yet the trend supports the observation of asset growth.

Adjusted Return on Assets (ROA)

Adjusted ROA shows a marked enhancement from -14.36% in 2020 to 6.25% in 2024. The adjusted metric surpasses the reported ROA figures consistently, indicating better profitability when excluding certain adjustments. This improvement highlights increased effectiveness in asset utilization and operational performance over the reviewed period.