Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
United Airlines Holdings Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.65 | 0.81 | 0.83 | 1.00 | 1.19 | |
| Quick ratio | 0.56 | 0.71 | 0.73 | 0.91 | 1.10 | |
| Cash ratio | 0.47 | 0.62 | 0.65 | 0.82 | 1.01 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
A consistent decline in liquidity is observed across the examined period. All three liquidity ratios – current, quick, and cash – demonstrate a decreasing trend from 2021 to 2025. This suggests a potential weakening in the company’s ability to meet its short-term obligations using its most liquid assets.
- Current Ratio
- The current ratio decreased from 1.19 in 2021 to 0.65 in 2025. This indicates a diminishing capacity to cover current liabilities with current assets. The ratio falling below 1.0 in 2022 and continuing to decline raises concerns about short-term solvency.
- Quick Ratio
- Mirroring the current ratio, the quick ratio also experienced a steady decline, moving from 1.10 in 2021 to 0.56 in 2025. This suggests that the decrease in liquidity is not solely attributable to inventory levels, as the quick ratio excludes inventory from its calculation. The trend indicates a reduction in highly liquid assets available to meet immediate obligations.
- Cash Ratio
- The cash ratio exhibited the most pronounced decrease, falling from 1.01 in 2021 to 0.47 in 2025. This signifies a substantial reduction in the proportion of current assets held as cash and cash equivalents. The company appears to be relying less on its most liquid assets to cover short-term liabilities, potentially indicating investments in other areas or a need to utilize cash to fund operations.
The parallel downward trends across all three ratios suggest a systematic shift in the company’s liquidity position. Further investigation is warranted to understand the underlying drivers of these changes and their potential implications for financial health.
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Current Ratio
United Airlines Holdings Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 16,857) | 18,883) | 18,487) | 20,058) | 21,834) | |
| Current liabilities | 26,133) | 23,314) | 22,203) | 19,992) | 18,304) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.65 | 0.81 | 0.83 | 1.00 | 1.19 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| FedEx Corp. | 1.19 | 1.36 | 1.37 | 1.43 | 1.51 | |
| Uber Technologies Inc. | 1.14 | 1.07 | 1.19 | 1.04 | 0.98 | |
| Union Pacific Corp. | 0.91 | 0.77 | 0.81 | 0.72 | 0.62 | |
| United Parcel Service Inc. | 1.22 | 1.17 | 1.10 | 1.22 | 1.42 | |
| Current Ratio, Sector | ||||||
| Transportation | 0.98 | 1.04 | 1.06 | 1.14 | 1.24 | |
| Current Ratio, Industry | ||||||
| Industrials | 1.13 | 1.19 | 1.16 | 1.20 | 1.29 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 16,857 ÷ 26,133 = 0.65
2 Click competitor name to see calculations.
The current ratio demonstrates a consistent decline over the five-year period. Initially at 1.19 in 2021, the ratio decreased to 0.65 by 2025. This indicates a weakening ability to cover short-term obligations with short-term assets.
- Current Ratio Trend
- The current ratio began at 1.19 in 2021, suggesting the entity held $1.19 of current assets for every $1 of current liabilities. This decreased to parity in 2022, reaching 1.00. Subsequent years show a continuing downward trend, falling to 0.83 in 2023, 0.81 in 2024, and ultimately to 0.65 in 2025. This represents a substantial reduction in the cushion of current assets available to meet immediate liabilities.
The decline in the current ratio is attributable to a combination of decreasing current assets and increasing current liabilities. While current assets experienced a reduction from $21,834 million in 2021 to $16,857 million in 2025, current liabilities increased from $18,304 million to $26,133 million over the same period. The increasing liabilities appear to be the primary driver of the ratio’s deterioration, as the decrease in current assets was less pronounced.
- Asset and Liability Dynamics
- Current assets decreased by approximately 22.8% between 2021 and 2025. Current liabilities, however, increased by approximately 42.8% over the same timeframe. This divergence in the trends of current assets and current liabilities is the key factor contributing to the observed decline in the current ratio.
The ratio falling below 1.00 in 2023 and continuing to decrease suggests increasing liquidity risk. A current ratio of 0.65 in 2025 indicates that for every $1 of current liabilities, only $0.65 of current assets are available for coverage. This level may raise concerns among creditors and investors regarding the entity’s short-term financial health.
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Quick Ratio
United Airlines Holdings Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 5,942) | 8,769) | 6,058) | 7,166) | 18,283) | |
| Short-term investments | 6,298) | 5,706) | 8,330) | 9,248) | 123) | |
| Receivables, net | 2,391) | 2,163) | 1,898) | 1,801) | 1,663) | |
| Total quick assets | 14,631) | 16,638) | 16,286) | 18,215) | 20,069) | |
| Current liabilities | 26,133) | 23,314) | 22,203) | 19,992) | 18,304) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.56 | 0.71 | 0.73 | 0.91 | 1.10 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| FedEx Corp. | 1.09 | 1.24 | 1.25 | 1.31 | 1.40 | |
| Uber Technologies Inc. | 0.98 | 0.95 | 1.02 | 0.88 | 0.82 | |
| Union Pacific Corp. | 0.62 | 0.55 | 0.61 | 0.52 | 0.47 | |
| United Parcel Service Inc. | 1.09 | 1.03 | 0.82 | 1.00 | 1.30 | |
| Quick Ratio, Sector | ||||||
| Transportation | 0.86 | 0.92 | 0.89 | 0.99 | 1.12 | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.67 | 0.68 | 0.65 | 0.71 | 0.80 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,631 ÷ 26,133 = 0.56
2 Click competitor name to see calculations.
The quick ratio demonstrates a consistent decline over the five-year period. Initially at 1.10 in 2021, the ratio decreased to 0.56 by 2025. This indicates a weakening ability to meet short-term obligations with highly liquid assets.
- Quick Ratio Trend
- From 2021 to 2022, the quick ratio experienced a moderate decrease, moving from 1.10 to 0.91. This suggests a slight reduction in the company’s capacity to cover immediate liabilities with its most liquid assets. The decline accelerated between 2022 and 2023, with the ratio falling to 0.73. This more substantial decrease signals a growing reliance on less liquid assets or increased short-term obligations.
- The downward trend continued in 2024, with the quick ratio reaching 0.71. The most significant drop occurred between 2024 and 2025, where the ratio declined to 0.56. This final decrease indicates a considerable deterioration in the company’s short-term liquidity position.
- Relationship between Quick Assets and Current Liabilities
- Total quick assets decreased from US$20,069 million in 2021 to US$14,631 million in 2025, representing a reduction of approximately 27%. Simultaneously, current liabilities increased from US$18,304 million in 2021 to US$26,133 million in 2025, an increase of roughly 43%. This divergence between decreasing liquid assets and increasing short-term liabilities is the primary driver of the declining quick ratio.
The consistent decline in the quick ratio warrants further investigation into the composition of both quick assets and current liabilities. Understanding the reasons behind the decrease in liquid assets and the increase in short-term obligations is crucial for assessing the company’s financial health and potential risks.
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Cash Ratio
United Airlines Holdings Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 5,942) | 8,769) | 6,058) | 7,166) | 18,283) | |
| Short-term investments | 6,298) | 5,706) | 8,330) | 9,248) | 123) | |
| Total cash assets | 12,240) | 14,475) | 14,388) | 16,414) | 18,406) | |
| Current liabilities | 26,133) | 23,314) | 22,203) | 19,992) | 18,304) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.47 | 0.62 | 0.65 | 0.82 | 1.01 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| FedEx Corp. | 0.36 | 0.49 | 0.50 | 0.48 | 0.52 | |
| Uber Technologies Inc. | 0.67 | 0.66 | 0.66 | 0.56 | 0.55 | |
| Union Pacific Corp. | 0.25 | 0.19 | 0.21 | 0.18 | 0.17 | |
| United Parcel Service Inc. | 0.38 | 0.37 | 0.18 | 0.31 | 0.58 | |
| Cash Ratio, Sector | ||||||
| Transportation | 0.45 | 0.51 | 0.47 | 0.52 | 0.65 | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.30 | 0.31 | 0.28 | 0.32 | 0.39 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 12,240 ÷ 26,133 = 0.47
2 Click competitor name to see calculations.
The cash ratio exhibited a consistent decline over the five-year period from December 31, 2021, to December 31, 2025. While initially above one, indicating sufficient cash to cover immediate current liabilities, the ratio progressively decreased, suggesting a weakening short-term liquidity position.
- Cash Ratio Trend
- In 2021, the cash ratio stood at 1.01, representing the ability to cover 101% of current liabilities with total cash assets. This decreased to 0.82 in 2022, indicating a reduced capacity to meet short-term obligations with available cash. The decline continued in subsequent years, reaching 0.65 in 2023, 0.62 in 2024, and further decreasing to 0.47 in 2025. This final value suggests that, by the end of 2025, only 47% of current liabilities could be covered by cash assets.
- Total Cash Assets
- Total cash assets decreased from US$18,406 million in 2021 to US$12,240 million in 2025. The largest single-year decrease occurred between 2021 and 2022, with a reduction of US$1,992 million. Subsequent decreases were more moderate, though consistently negative.
- Current Liabilities
- Current liabilities demonstrated a consistent upward trend throughout the period, increasing from US$18,304 million in 2021 to US$26,133 million in 2025. This increase in short-term obligations, coupled with the decline in cash assets, contributed to the observed deterioration in the cash ratio.
The combined effect of decreasing cash assets and increasing current liabilities resulted in a substantial weakening of the company’s immediate liquidity position as measured by the cash ratio. The trend suggests a growing reliance on other forms of short-term financing or a potential need to improve cash flow management.
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