Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
United Airlines Holdings Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
- Debt to Equity
- The debt to equity ratio demonstrates a clear downward trend from 4.75 in 2020 to 2.26 in 2024, indicating a substantial reduction in leverage relative to shareholders' equity over the five-year period. This suggests improved financial stability and reduced reliance on debt financing. When including operating lease liabilities, the same ratio follows a similar pattern, decreasing from 5.69 to 2.65, confirming consistent deleveraging practice across all liabilities.
- Debt to Capital
- Debt to capital ratios also decline steadily through the years, dropping from 0.83 to 0.69 (and 0.85 to 0.73 when including operating lease liabilities). This reduction suggests a decreasing proportion of debt in the company's overall capital structure, further signifying efforts to lower financial risk.
- Debt to Assets
- Debt to assets ratios decrease from 0.48 to 0.39, and when including operating lease liabilities from 0.57 to 0.45, indicating a reduction in the proportion of assets financed through debt. This trend implies an improving asset base relative to liabilities or a strategic lowering of debt levels.
- Financial Leverage
- Financial leverage exhibits a declining trend from 9.99 to 5.84, reflecting a notable reduction in total assets relative to equity. This indicates enhanced equity strength and less reliance on borrowed funds to finance assets.
- Interest Coverage
- Interest coverage ratios show significant improvement over the period, recovering from negative values of -7.89 and -0.62 in 2020 and 2021 to positive and increasing ratios of 1.59 in 2022, advancing to 3.97 by 2024. This change reveals a marked improvement in the company's ability to meet interest obligations from operating earnings, indicating a recovery in operational profitability or cost management.
- Fixed Charge Coverage
- Fixed charge coverage follows a parallel pattern to interest coverage, rising from highly negative or near zero values (-3.58 and -0.01) in the initial years to stable positive coverage of 2.85 by 2024. This improvement underlines an enhanced capacity to cover fixed financial obligations beyond just interest, such as lease payments, further supporting the narrative of strengthening financial health.
Debt Ratios
Coverage Ratios
Debt to Equity
United Airlines Holdings Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt, finance leases, and other financial liabilities | 3,453) | 4,247) | 3,038) | 3,912) | 2,111) | |
| Long-term debt, finance leases, and other financial liabilities, less current portion | 25,203) | 27,413) | 29,242) | 31,443) | 26,200) | |
| Total debt | 28,656) | 31,660) | 32,280) | 35,355) | 28,311) | |
| Stockholders’ equity | 12,675) | 9,324) | 6,896) | 5,029) | 5,960) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 2.26 | 3.40 | 4.68 | 7.03 | 4.75 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| FedEx Corp. | 0.73 | 0.79 | 0.81 | 0.86 | 1.20 | |
| Uber Technologies Inc. | 0.45 | 0.89 | 1.32 | 0.66 | 0.64 | |
| Union Pacific Corp. | 1.85 | 2.20 | 2.74 | 2.10 | 1.58 | |
| United Parcel Service Inc. | 1.27 | 1.29 | 0.99 | 1.54 | 37.53 | |
| Debt to Equity, Sector | ||||||
| Transportation | 1.16 | 1.49 | 1.62 | 1.63 | 2.02 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.39 | 1.52 | 1.42 | 1.37 | 1.82 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 28,656 ÷ 12,675 = 2.26
2 Click competitor name to see calculations.
The financial data indicates significant changes in the capital structure of the company over the analyzed periods.
- Total Debt
- Total debt increased from 28,311 million USD in 2020 to a peak of 35,355 million USD in 2021, followed by a gradual decrease to 28,656 million USD in 2024. This suggests that after a notable rise in debt levels in 2021, the company undertook measures to reduce its debt in subsequent years.
- Stockholders’ Equity
- Stockholders' equity showed a fluctuating but overall upward trend, starting at 5,960 million USD in 2020, dipping slightly to 5,029 million USD in 2021, then increasing significantly to 12,675 million USD by 2024. This consistent growth after 2021 indicates a strengthening equity base and potential improvement in retained earnings or equity financing.
- Debt to Equity Ratio
- The debt to equity ratio exhibited a high level of leverage in 2021 at 7.03, coinciding with the peak in total debt and low equity. This ratio steadily declined to 2.26 by 2024, reflecting an improvement in the balance between liabilities and equity. The decline in leverage suggests enhanced financial stability and reduced risk associated with the company’s capital structure.
In summary, the company experienced increased indebtedness in 2021, which was subsequently reversed through debt reduction and equity growth. These changes led to a substantial improvement in the debt to equity ratio, indicating a more balanced and potentially less risky financial position by 2024.
Debt to Equity (including Operating Lease Liability)
United Airlines Holdings Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt, finance leases, and other financial liabilities | 3,453) | 4,247) | 3,038) | 3,912) | 2,111) | |
| Long-term debt, finance leases, and other financial liabilities, less current portion | 25,203) | 27,413) | 29,242) | 31,443) | 26,200) | |
| Total debt | 28,656) | 31,660) | 32,280) | 35,355) | 28,311) | |
| Current maturities of operating leases | 467) | 576) | 561) | 556) | 612) | |
| Long-term obligations under operating leases | 4,510) | 4,503) | 4,459) | 5,152) | 4,986) | |
| Total debt (including operating lease liability) | 33,633) | 36,739) | 37,300) | 41,063) | 33,909) | |
| Stockholders’ equity | 12,675) | 9,324) | 6,896) | 5,029) | 5,960) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 2.65 | 3.94 | 5.41 | 8.17 | 5.69 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 1.37 | 1.47 | 1.49 | 1.51 | 1.97 | |
| Uber Technologies Inc. | 0.53 | 1.04 | 1.58 | 0.79 | 0.78 | |
| Union Pacific Corp. | 1.92 | 2.31 | 2.87 | 2.22 | 1.67 | |
| United Parcel Service Inc. | 1.53 | 1.54 | 1.19 | 1.79 | 42.24 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Transportation | 1.48 | 1.88 | 2.03 | 2.02 | 2.51 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.55 | 1.71 | 1.59 | 1.54 | 2.00 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 33,633 ÷ 12,675 = 2.65
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt increased significantly from 33,909 million USD at the end of 2020 to a peak of 41,063 million USD in 2021. After this peak, the debt gradually declined over the subsequent years, reaching 33,633 million USD by the end of 2024, which is slightly below the 2020 level.
- Stockholders’ equity
- Stockholders' equity showed a fluctuating but overall strong upward trend over the period. It initially decreased from 5,960 million USD in 2020 to 5,029 million USD in 2021, then steadily increased each year, reaching 12,675 million USD by the end of 2024. This represents more than a doubling of equity from the 2020 level, indicating strong equity growth in the latter years.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio reflected high leverage in 2020 and 2021, peaking at 8.17 in 2021. Following this, the ratio showed a consistent decline through 2024, falling to 2.65, the lowest level observed during the period. This decline is attributable to both the reduction in total debt and the substantial increase in equity, indicating a significant improvement in the capital structure and reduced financial risk.
Debt to Capital
United Airlines Holdings Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt, finance leases, and other financial liabilities | 3,453) | 4,247) | 3,038) | 3,912) | 2,111) | |
| Long-term debt, finance leases, and other financial liabilities, less current portion | 25,203) | 27,413) | 29,242) | 31,443) | 26,200) | |
| Total debt | 28,656) | 31,660) | 32,280) | 35,355) | 28,311) | |
| Stockholders’ equity | 12,675) | 9,324) | 6,896) | 5,029) | 5,960) | |
| Total capital | 41,331) | 40,984) | 39,176) | 40,384) | 34,271) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.69 | 0.77 | 0.82 | 0.88 | 0.83 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| FedEx Corp. | 0.42 | 0.44 | 0.45 | 0.46 | 0.55 | |
| Uber Technologies Inc. | 0.31 | 0.47 | 0.57 | 0.40 | 0.39 | |
| Union Pacific Corp. | 0.65 | 0.69 | 0.73 | 0.68 | 0.61 | |
| United Parcel Service Inc. | 0.56 | 0.56 | 0.50 | 0.61 | 0.97 | |
| Debt to Capital, Sector | ||||||
| Transportation | 0.54 | 0.60 | 0.62 | 0.62 | 0.67 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.58 | 0.60 | 0.59 | 0.58 | 0.65 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 28,656 ÷ 41,331 = 0.69
2 Click competitor name to see calculations.
- Total Debt
- The total debt initially increased from 28,311 million USD in 2020 to a peak of 35,355 million USD in 2021, reflecting a significant rise. Following this peak, a steady decline is observed over the subsequent years, reducing to 28,656 million USD by the end of 2024, nearly returning to the 2020 level.
- Total Capital
- Total capital experienced growth from 34,271 million USD in 2020 to 40,384 million USD in 2021. Despite a slight decrease to 39,176 million USD in 2022, the total capital rebounded and continued to grow moderately, reaching 41,331 million USD by 2024. This indicates an overall upward trend in capital over the assessed period.
- Debt to Capital Ratio
- The debt to capital ratio rose from 0.83 in 2020 to a high of 0.88 in 2021, corresponding with the peak in total debt and increased capital base. Thereafter, the ratio consistently decreased year-on-year, falling to 0.69 by 2024. This declining trend suggests an improving capital structure with a reduction in relative debt burden over time.
- Summary
- Overall, the data reflects a pattern where leverage increased sharply in 2021, likely due to increased borrowing or capital adjustments during that year. Subsequently, the company took actions to reduce its debt levels while steadily increasing total capital. This is evidenced by the declining debt to capital ratio from 2021 to 2024, indicating strengthening financial stability and lower reliance on debt financing as a proportion of total capital.
Debt to Capital (including Operating Lease Liability)
United Airlines Holdings Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt, finance leases, and other financial liabilities | 3,453) | 4,247) | 3,038) | 3,912) | 2,111) | |
| Long-term debt, finance leases, and other financial liabilities, less current portion | 25,203) | 27,413) | 29,242) | 31,443) | 26,200) | |
| Total debt | 28,656) | 31,660) | 32,280) | 35,355) | 28,311) | |
| Current maturities of operating leases | 467) | 576) | 561) | 556) | 612) | |
| Long-term obligations under operating leases | 4,510) | 4,503) | 4,459) | 5,152) | 4,986) | |
| Total debt (including operating lease liability) | 33,633) | 36,739) | 37,300) | 41,063) | 33,909) | |
| Stockholders’ equity | 12,675) | 9,324) | 6,896) | 5,029) | 5,960) | |
| Total capital (including operating lease liability) | 46,308) | 46,063) | 44,196) | 46,092) | 39,869) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.73 | 0.80 | 0.84 | 0.89 | 0.85 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 0.58 | 0.60 | 0.60 | 0.60 | 0.66 | |
| Uber Technologies Inc. | 0.35 | 0.51 | 0.61 | 0.44 | 0.44 | |
| Union Pacific Corp. | 0.66 | 0.70 | 0.74 | 0.69 | 0.63 | |
| United Parcel Service Inc. | 0.61 | 0.61 | 0.54 | 0.64 | 0.98 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.60 | 0.65 | 0.67 | 0.67 | 0.71 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.63 | 0.61 | 0.61 | 0.67 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 33,633 ÷ 46,308 = 0.73
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
-
The total debt experienced an increase from 33,909 million US dollars at the end of 2020 to a peak of 41,063 million US dollars in 2021. Subsequently, it declined to 37,300 million in 2022 and continued a downward trend through 2023 and 2024, reaching 33,633 million. This pattern indicates a significant reduction in debt levels after the initial rise in 2021, returning to a figure slightly below the 2020 level by 2024.
- Total Capital (including operating lease liability)
-
Total capital followed an upward trajectory initially, rising from 39,869 million US dollars in 2020 to 46,092 million in 2021. It slightly decreased to 44,196 million in 2022 but rebounded in the following years to 46,063 million in 2023 and further to 46,308 million in 2024. This denotes relative stability and moderate growth in capital base after a minor dip in 2022.
- Debt to Capital Ratio (including operating lease liability)
-
The debt to capital ratio increased from 0.85 in 2020 to 0.89 in 2021, suggesting a higher leverage level in that year. From 2021 onwards, the ratio steadily decreased each year, reaching 0.84 in 2022, 0.80 in 2023, and 0.73 by 2024. This downward trend implies an improvement in the capital structure with a lower proportion of debt financing relative to total capital over time.
- Overall Analysis
-
The financial data reveals that after a peak in leverage and debt levels in 2021, there has been a consistent effort to reduce debt and improve capital structure. The declining debt to capital ratio over the last three years suggests increasing financial stability and reduced risk related to debt. Concurrently, the relatively stable and slightly growing total capital base implies sustained or improving funding capacity, which may support operational and strategic initiatives going forward. This trend likely reflects a focus on deleveraging and strengthening the balance sheet following the volatility observed in 2020 and 2021.
Debt to Assets
United Airlines Holdings Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt, finance leases, and other financial liabilities | 3,453) | 4,247) | 3,038) | 3,912) | 2,111) | |
| Long-term debt, finance leases, and other financial liabilities, less current portion | 25,203) | 27,413) | 29,242) | 31,443) | 26,200) | |
| Total debt | 28,656) | 31,660) | 32,280) | 35,355) | 28,311) | |
| Total assets | 74,083) | 71,104) | 67,358) | 68,175) | 59,548) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.39 | 0.45 | 0.48 | 0.52 | 0.48 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| FedEx Corp. | 0.23 | 0.24 | 0.24 | 0.25 | 0.30 | |
| Uber Technologies Inc. | 0.19 | 0.26 | 0.30 | 0.25 | 0.24 | |
| Union Pacific Corp. | 0.46 | 0.49 | 0.51 | 0.47 | 0.43 | |
| United Parcel Service Inc. | 0.30 | 0.31 | 0.28 | 0.32 | 0.40 | |
| Debt to Assets, Sector | ||||||
| Transportation | 0.32 | 0.35 | 0.36 | 0.36 | 0.38 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.31 | 0.31 | 0.31 | 0.30 | 0.33 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 28,656 ÷ 74,083 = 0.39
2 Click competitor name to see calculations.
- Total Debt
- The total debt showed an increasing trend from 2020 to 2021, rising from 28,311 million US dollars to 35,355 million US dollars. Subsequently, it decreased in the years 2022, 2023, and 2024, falling to 32,280 million, 31,660 million, and 28,656 million US dollars respectively. This indicates a reduction in total debt after peaking in 2021.
- Total Assets
- Total assets exhibited steady growth throughout the period under review. Starting at 59,548 million US dollars in 2020, total assets increased to 68,175 million in 2021. Although there was a slight dip to 67,358 million in 2022, the upward momentum resumed in 2023 and 2024, reaching a value of 74,083 million US dollars by the end of 2024.
- Debt to Assets Ratio
- The debt to assets ratio initially rose from 0.48 in 2020 to 0.52 in 2021, indicating that the proportion of debt relative to assets increased during this period. From 2021 onwards, the ratio declined consistently, falling to 0.48 in 2022, then to 0.45 in 2023, and further down to 0.39 in 2024. This decreasing ratio suggests improved financial leverage and a strengthening asset base relative to debt over the last three years.
- Overall Observations
- Over the five-year span, the company’s total assets have generally increased, reflecting growth or acquisition of resources. The peak in total debt occurred in 2021, after which the company managed to reduce its debt levels steadily. The declining debt to assets ratio from 2021 onwards suggests an improving balance sheet structure, with a decreasing reliance on debt financing relative to the asset base. This trend points to enhanced financial stability and potentially greater capacity to withstand financial stresses.
Debt to Assets (including Operating Lease Liability)
United Airlines Holdings Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt, finance leases, and other financial liabilities | 3,453) | 4,247) | 3,038) | 3,912) | 2,111) | |
| Long-term debt, finance leases, and other financial liabilities, less current portion | 25,203) | 27,413) | 29,242) | 31,443) | 26,200) | |
| Total debt | 28,656) | 31,660) | 32,280) | 35,355) | 28,311) | |
| Current maturities of operating leases | 467) | 576) | 561) | 556) | 612) | |
| Long-term obligations under operating leases | 4,510) | 4,503) | 4,459) | 5,152) | 4,986) | |
| Total debt (including operating lease liability) | 33,633) | 36,739) | 37,300) | 41,063) | 33,909) | |
| Total assets | 74,083) | 71,104) | 67,358) | 68,175) | 59,548) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.45 | 0.52 | 0.55 | 0.60 | 0.57 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 0.43 | 0.44 | 0.43 | 0.44 | 0.49 | |
| Uber Technologies Inc. | 0.22 | 0.30 | 0.36 | 0.29 | 0.29 | |
| Union Pacific Corp. | 0.48 | 0.51 | 0.53 | 0.50 | 0.45 | |
| United Parcel Service Inc. | 0.37 | 0.38 | 0.33 | 0.37 | 0.44 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.40 | 0.44 | 0.45 | 0.45 | 0.47 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.35 | 0.35 | 0.34 | 0.34 | 0.36 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 33,633 ÷ 74,083 = 0.45
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt exhibited an initial increase from 33,909 million USD in 2020 to a peak of 41,063 million USD in 2021. Following this peak, there was a gradual decline over the subsequent years, falling to 37,300 million USD in 2022, 36,739 million USD in 2023, and further decreasing to 33,633 million USD by 2024. This suggests a trend of debt reduction after 2021, indicating efforts toward deleveraging or improved debt management.
- Total assets
- Total assets showed a generally upward trajectory throughout the entire period. Starting at 59,548 million USD in 2020, assets increased to 68,175 million USD in 2021. Although there was a slight dip to 67,358 million USD in 2022, the asset base subsequently expanded again, reaching 71,104 million USD in 2023 and 74,083 million USD in 2024. This overall growth signifies asset accumulation or appreciation over the years under review.
- Debt to assets (including operating lease liability)
- The debt to assets ratio initially rose from 0.57 in 2020 to 0.60 in 2021, reflecting an increase in leverage relative to asset size. However, from 2021 onwards, the ratio steadily declined to 0.55 in 2022, then to 0.52 in 2023, and significantly down to 0.45 by 2024. This trend indicates an improving financial leverage position, with debt becoming a smaller proportion of total assets over time, aligning with the observed reductions in total debt and growth in total assets.
Financial Leverage
United Airlines Holdings Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 74,083) | 71,104) | 67,358) | 68,175) | 59,548) | |
| Stockholders’ equity | 12,675) | 9,324) | 6,896) | 5,029) | 5,960) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 5.84 | 7.63 | 9.77 | 13.56 | 9.99 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| FedEx Corp. | 3.15 | 3.34 | 3.45 | 3.43 | 4.02 | |
| Uber Technologies Inc. | 2.38 | 3.44 | 4.37 | 2.68 | 2.71 | |
| Union Pacific Corp. | 4.01 | 4.54 | 5.38 | 4.49 | 3.68 | |
| United Parcel Service Inc. | 4.19 | 4.09 | 3.59 | 4.87 | 94.99 | |
| Financial Leverage, Sector | ||||||
| Transportation | 3.67 | 4.25 | 4.53 | 4.48 | 5.38 | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.49 | 4.94 | 4.65 | 4.52 | 5.49 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 74,083 ÷ 12,675 = 5.84
2 Click competitor name to see calculations.
- Total Assets
- The total assets demonstrated a generally increasing trend over the five-year period. Starting from 59,548 million US dollars at the end of 2020, total assets rose to 68,175 million in 2021 before experiencing a slight decline to 67,358 million in 2022. Subsequently, assets resumed growth, reaching 71,104 million in 2023 and further increasing to 74,083 million in 2024. This pattern indicates overall asset growth with a minor fluctuation in 2022.
- Stockholders’ Equity
- Stockholders’ equity showed a fluctuating but overall rising trend across the years. It decreased from 5,960 million in 2020 to 5,029 million in 2021, indicating a reduction in company net worth relative to the previous year. However, equity rebounded substantially in the following years, increasing to 6,896 million in 2022, then to 9,324 million in 2023, and finally reaching 12,675 million in 2024. This recovery and growth suggest improved profitability, retained earnings, or capital structure enhancements during the last three years.
- Financial Leverage
- The financial leverage ratio exhibited a significant decline over the five-year span. Beginning at a high ratio of 9.99 in 2020, leverage increased sharply to 13.56 in 2021, indicating greater reliance on debt relative to equity during that year. Following 2021, the ratio steadily decreased each year, to 9.77 in 2022, 7.63 in 2023, and finally 5.84 in 2024. This downward trajectory reflects a consistent reduction in leverage, aligning with the increase in stockholders’ equity and suggesting an effort to strengthen the capital structure by lowering financial risk.
Interest Coverage
United Airlines Holdings Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 3,149) | 2,618) | 737) | (1,964) | (7,069) | |
| Add: Income tax expense | 1,019) | 769) | 253) | (593) | (1,753) | |
| Add: Interest expense, net of interest capitalized | 1,402) | 1,774) | 1,673) | 1,577) | 992) | |
| Earnings before interest and tax (EBIT) | 5,570) | 5,161) | 2,663) | (980) | (7,830) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.97 | 2.91 | 1.59 | -0.62 | -7.89 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| FedEx Corp. | 8.83 | 8.73 | 8.11 | 9.42 | 3.48 | |
| Uber Technologies Inc. | 8.81 | 4.74 | -15.49 | -1.20 | -14.24 | |
| Union Pacific Corp. | 7.93 | 7.14 | 8.14 | 8.33 | 7.12 | |
| United Parcel Service Inc. | 9.59 | 11.92 | 22.06 | 24.91 | 3.63 | |
| Interest Coverage, Sector | ||||||
| Transportation | 7.31 | 6.34 | 5.17 | 6.98 | -0.34 | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.79 | 6.64 | 4.98 | 5.14 | 1.25 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,570 ÷ 1,402 = 3.97
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT figures show a marked improvement over the five-year period. Starting with a significant loss of -7830 million USD in 2020, the company drastically reduced its losses by 2021 to -980 million USD. By 2022, the EBIT turned positive, reaching 2663 million USD and continued to increase steadily to 5161 million USD in 2023 and 5570 million USD in 2024. This trend suggests a strong recovery and growth in operating profitability over the observed years.
- Interest expense, net of interest capitalized
- The net interest expense has fluctuated slightly but remained relatively stable in comparison to EBIT changes. It increased from 992 million USD in 2020 to 1577 million USD in 2021 and further to 1673 million USD in 2022. A continued moderate increase was observed in 2023 with 1774 million USD, followed by a decrease to 1402 million USD in 2024. This reduction in the last year may indicate successful refinancing efforts or debt reduction initiatives.
- Interest coverage ratio
- The interest coverage ratio shows a significant improvement from a very weak position at -7.89 in 2020 to -0.62 in 2021, reflecting a negative EBIT and an inability to cover interest expenses during these years. In 2022, it transitioned above the threshold of 1.0 to 1.59, indicating the company began generating sufficient EBIT to cover interest obligations. This positive trajectory continued robustly in 2023 and 2024, reaching 2.91 and 3.97 respectively, which signals a strengthening capacity to meet interest expenses comfortably.
Fixed Charge Coverage
United Airlines Holdings Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 3,149) | 2,618) | 737) | (1,964) | (7,069) | |
| Add: Income tax expense | 1,019) | 769) | 253) | (593) | (1,753) | |
| Add: Interest expense, net of interest capitalized | 1,402) | 1,774) | 1,673) | 1,577) | 992) | |
| Earnings before interest and tax (EBIT) | 5,570) | 5,161) | 2,663) | (980) | (7,830) | |
| Add: Operating lease cost | 855) | 925) | 941) | 958) | 933) | |
| Earnings before fixed charges and tax | 6,425) | 6,086) | 3,604) | (22) | (6,897) | |
| Interest expense, net of interest capitalized | 1,402) | 1,774) | 1,673) | 1,577) | 992) | |
| Operating lease cost | 855) | 925) | 941) | 958) | 933) | |
| Fixed charges | 2,257) | 2,699) | 2,614) | 2,535) | 1,925) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.85 | 2.25 | 1.38 | -0.01 | -3.58 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| FedEx Corp. | 2.43 | 2.34 | 2.29 | 2.83 | 1.50 | |
| Uber Technologies Inc. | 6.00 | 3.48 | -9.72 | -0.36 | -6.43 | |
| Union Pacific Corp. | 6.47 | 5.82 | 6.64 | 6.81 | 5.79 | |
| United Parcel Service Inc. | 5.19 | 6.21 | 11.30 | 12.66 | 2.31 | |
| Fixed Charge Coverage, Sector | ||||||
| Transportation | 3.88 | 3.54 | 2.98 | 3.86 | 0.41 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.96 | 4.32 | 3.30 | 3.44 | 1.12 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,425 ÷ 2,257 = 2.85
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax showed a significant improvement over the analyzed period. In 2020, the figure was deeply negative at -6,897 million US dollars, indicating substantial losses. By 2021, this value approached break-even at -22 million US dollars, and from 2022 onwards, it turned positive, reaching 3,604 million US dollars. The upward trend continued in 2023 and 2024, with earnings increasing to 6,086 million and 6,425 million US dollars respectively. This represents a strong recovery and progressively improving profitability before fixed charges and taxes.
- Fixed charges
- Fixed charges increased from 1,925 million US dollars in 2020 to a peak of 2,699 million US dollars in 2023, before slightly declining to 2,257 million US dollars in 2024. This upward movement until 2023 suggests higher obligations related to debt servicing or lease expenses during the recovery phase, followed by a modest reduction in the most recent year.
- Fixed charge coverage
- The fixed charge coverage ratio demonstrated a marked improvement throughout the period. Initially, it was significantly negative at -3.58 in 2020, indicative of insufficient earnings to cover fixed charges. The ratio neared zero in 2021 at -0.01, reflecting minimal coverage. By 2022, the company achieved positive coverage at 1.38, which increased to 2.25 in 2023, and further to 2.85 in 2024. This ratio improvement indicates strengthening financial stability and an increasing ability to meet fixed financial obligations through operational earnings.