Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
United Airlines Holdings Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The long-term investment activity ratios demonstrate varying trends over the observed period. Generally, the ratios indicate a period of improvement followed by stabilization and, in some cases, a slight decline towards the end of the analyzed timeframe. The net fixed asset turnover ratios, both with and without operating leases, show initial increases before leveling off and experiencing minor decreases in the most recent quarters.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 0.91 in March 2022 to a peak of 1.36 in March 2023, indicating improved efficiency in utilizing fixed assets to generate revenue. Following this peak, the ratio remained relatively stable, fluctuating between 1.33 and 1.37 for several quarters before decreasing to 1.28 by December 2025. This suggests a potential slowing in the rate of revenue generation from fixed assets.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- A similar pattern is observed in the net fixed asset turnover ratio including operating leases. This ratio rose from 0.79 in March 2022 to 1.24 between June 2023 and September 2023. Like the standard net fixed asset turnover, it then exhibited a slight downward trend, ending at 1.16 in December 2025. The inclusion of operating leases appears to result in consistently lower turnover values compared to the ratio excluding them.
- Total Asset Turnover
- The total asset turnover ratio consistently increased from 0.42 in March 2022 to 0.77 in September 2024, demonstrating improved efficiency in utilizing all assets to generate revenue. The ratio stabilized around 0.76-0.77 for several quarters and then increased slightly to 0.77 in December 2025. This indicates a sustained level of asset utilization.
- Equity Turnover
- The equity turnover ratio experienced a more pronounced decline over the period. Starting at 8.00 in March 2022, it decreased to 3.87 by December 2025. This suggests that revenue generated per dollar of equity invested has been decreasing, potentially indicating a less efficient use of equity financing or a shift in capital structure. The most significant declines occurred between September 2023 and December 2025.
Overall, the ratios suggest an initial period of improving asset utilization followed by a period of stabilization and, in the case of equity turnover, a noticeable decline. Further investigation may be warranted to understand the drivers behind these trends, particularly the decreasing equity turnover and the recent slight declines in fixed asset turnover ratios.
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Net Fixed Asset Turnover
United Airlines Holdings Inc., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating revenue | 15,396) | 15,225) | 15,236) | 13,213) | 14,695) | 14,843) | 14,986) | 12,539) | 13,626) | 14,484) | 14,178) | 11,429) | 12,400) | 12,877) | 12,112) | 7,566) | |||||
| Operating property and equipment, net | 46,121) | 44,968) | 43,896) | 43,430) | 42,908) | 41,680) | 40,665) | 40,470) | 39,815) | 38,360) | 37,128) | 35,837) | 34,448) | 32,506) | 31,853) | 31,881) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover1 | 1.28 | 1.30 | 1.32 | 1.33 | 1.33 | 1.34 | 1.37 | 1.35 | 1.35 | 1.37 | 1.37 | 1.36 | 1.31 | 1.25 | 1.12 | 0.91 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 2.11 | 2.14 | 2.13 | 2.12 | 2.11 | 2.11 | 2.12 | 2.15 | 2.22 | 2.32 | 2.37 | 2.44 | 2.45 | 2.45 | 2.41 | 2.37 | |||||
| Uber Technologies Inc. | 27.42 | 25.70 | 24.30 | 23.38 | 22.53 | 21.17 | 19.69 | 18.98 | 17.98 | 17.12 | 16.54 | 15.80 | 15.31 | 14.96 | 13.73 | 11.55 | |||||
| Union Pacific Corp. | 0.41 | 0.41 | 0.41 | 0.41 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 | 0.44 | 0.45 | 0.44 | 0.44 | 0.42 | 0.41 | |||||
| United Parcel Service Inc. | 2.35 | 2.37 | 2.39 | 2.44 | 2.45 | 2.43 | 2.41 | 2.41 | 2.46 | 2.58 | 2.71 | 2.83 | 2.89 | 3.01 | 2.99 | 2.94 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Net fixed asset turnover
= (Operating revenueQ4 2025
+ Operating revenueQ3 2025
+ Operating revenueQ2 2025
+ Operating revenueQ1 2025)
÷ Operating property and equipment, net
= (15,396 + 15,225 + 15,236 + 13,213)
÷ 46,121 = 1.28
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits an overall increasing trend from March 31, 2022, through June 30, 2023, followed by a gradual decline through December 31, 2025. Initial values indicate improvement in asset utilization, but recent periods suggest a potential weakening of this efficiency.
- Initial Improvement (Mar 31, 2022 – Jun 30, 2023)
- The ratio began at 0.91 in March 2022 and steadily increased, reaching 1.37 by June 2023. This indicates that the company was becoming more efficient in generating revenue from its fixed assets during this period. The increase suggests improved capacity utilization, potentially driven by recovering demand or optimized asset management.
- Plateau and Subsequent Decline (Sep 30, 2023 – Dec 31, 2025)
- Following the peak in June 2023, the ratio experienced a slight fluctuation, remaining relatively stable around 1.35-1.37 for several quarters. However, a consistent downward trend is observed from September 2024, decreasing to 1.28 by December 2025. This suggests a diminishing ability to generate revenue from the existing fixed asset base. The decline could be attributed to factors such as increased asset investment without a corresponding revenue increase, decreased operational efficiency, or a slowdown in revenue growth.
- Recent Performance (Mar 31, 2024 – Dec 31, 2025)
- The most recent values, from March 2024 to December 2025, show a consistent, albeit moderate, decrease in the ratio. While the values remain above the initial level from March 2022, the downward trajectory warrants attention. The ratio decreased from 1.37 in March 2024 to 1.28 in December 2025, representing a roughly 6.6% decrease over this period.
- Overall Trend
- The overall trend indicates a period of improving asset utilization followed by a stabilization and then a gradual decline. Further investigation is recommended to understand the underlying causes of the recent decrease and to assess its potential impact on future profitability and investment strategies.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
United Airlines Holdings Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating revenue | 15,396) | 15,225) | 15,236) | 13,213) | 14,695) | 14,843) | 14,986) | 12,539) | 13,626) | 14,484) | 14,178) | 11,429) | 12,400) | 12,877) | 12,112) | 7,566) | |||||
| Operating property and equipment, net | 46,121) | 44,968) | 43,896) | 43,430) | 42,908) | 41,680) | 40,665) | 40,470) | 39,815) | 38,360) | 37,128) | 35,837) | 34,448) | 32,506) | 31,853) | 31,881) | |||||
| Operating lease right-of-use assets | 4,958) | 4,821) | 4,517) | 4,092) | 3,815) | 3,782) | 3,803) | 3,895) | 3,914) | 3,975) | 3,995) | 4,019) | 3,889) | 4,280) | 4,440) | 4,579) | |||||
| Operating property and equipment, net (including operating lease, right-of-use asset) | 51,079) | 49,789) | 48,413) | 47,522) | 46,723) | 45,462) | 44,468) | 44,365) | 43,729) | 42,335) | 41,123) | 39,856) | 38,337) | 36,786) | 36,293) | 36,460) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.16 | 1.17 | 1.20 | 1.21 | 1.22 | 1.23 | 1.25 | 1.24 | 1.23 | 1.24 | 1.24 | 1.22 | 1.17 | 1.11 | 0.98 | 0.79 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 1.51 | 1.53 | 1.51 | 1.50 | 1.50 | 1.50 | 1.50 | 1.51 | 1.55 | 1.62 | 1.65 | 1.69 | 1.71 | 1.70 | 1.68 | 1.67 | |||||
| Uber Technologies Inc. | 17.28 | 16.23 | 15.26 | 14.62 | 14.14 | 13.23 | 12.46 | 11.88 | 11.25 | 10.70 | 10.26 | 9.73 | 9.03 | 8.68 | 7.65 | 6.50 | |||||
| Union Pacific Corp. | 0.40 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 | 0.42 | 0.43 | 0.43 | 0.43 | 0.41 | 0.40 | |||||
| United Parcel Service Inc. | 2.11 | 2.13 | 2.17 | 2.20 | 2.20 | 2.18 | 2.17 | 2.17 | 2.20 | 2.32 | 2.42 | 2.53 | 2.61 | 2.73 | 2.71 | 2.66 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Operating revenueQ4 2025
+ Operating revenueQ3 2025
+ Operating revenueQ2 2025
+ Operating revenueQ1 2025)
÷ Operating property and equipment, net (including operating lease, right-of-use asset)
= (15,396 + 15,225 + 15,236 + 13,213)
÷ 51,079 = 1.16
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, incorporating operating leases and right-of-use assets, demonstrates a generally positive trend over the observed period, although recent quarters suggest a potential stabilization or slight decline.
- Overall Trend
- From March 31, 2022, to June 30, 2023, the ratio increased from 0.79 to 1.24, indicating improving efficiency in generating revenue from its fixed assets. This suggests the company was becoming more effective at utilizing its assets to drive sales during this timeframe. The ratio remained at 1.24 for the September 30, 2023, period before experiencing a slight decrease.
- Recent Performance (2023-2025)
- Following the peak of 1.24 in September 2023, the ratio experienced a modest decline, fluctuating between 1.23 and 1.20 through March 31, 2025. The most recent period, December 31, 2025, shows a ratio of 1.16. This suggests a potential plateauing of asset utilization efficiency or a slower rate of revenue growth relative to fixed asset investment.
- Quarterly Fluctuations
- The ratio exhibits some quarterly variability. Increases are observed between the first and second quarters of each year, likely reflecting seasonal demand patterns within the industry. However, the magnitude of these increases has diminished in more recent periods. The fourth quarter generally shows a slight decrease compared to the third quarter, potentially due to seasonal factors or strategic asset adjustments.
- Asset Base Growth
- The denominator of the ratio, operating property and equipment (including operating lease, right-of-use asset), consistently increased throughout the period, rising from US$36.460 billion in March 2022 to US$51.079 billion in December 2025. This indicates ongoing investment in fixed assets. The fact that the turnover ratio did not continue to increase proportionally suggests that revenue growth has not kept pace with asset expansion in the latter part of the period.
In summary, while the company initially demonstrated improved efficiency in utilizing its fixed assets, the recent trend suggests a stabilization or slight decrease in this efficiency. Continued monitoring of this ratio, alongside revenue growth and asset investment strategies, is recommended.
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Total Asset Turnover
United Airlines Holdings Inc., total asset turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating revenue | 15,396) | 15,225) | 15,236) | 13,213) | 14,695) | 14,843) | 14,986) | 12,539) | 13,626) | 14,484) | 14,178) | 11,429) | 12,400) | 12,877) | 12,112) | 7,566) | |||||
| Total assets | 76,448) | 76,313) | 77,163) | 76,111) | 74,083) | 72,640) | 73,254) | 71,902) | 71,104) | 73,153) | 73,341) | 70,417) | 67,358) | 68,968) | 70,381) | 69,038) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | 0.77 | 0.76 | 0.75 | 0.76 | 0.77 | 0.77 | 0.76 | 0.76 | 0.76 | 0.72 | 0.69 | 0.69 | 0.67 | 0.59 | 0.51 | 0.42 | |||||
| Benchmarks | |||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 1.00 | 1.03 | 1.02 | 1.01 | 1.01 | 1.02 | 1.00 | 1.01 | 1.03 | 1.08 | 1.10 | 1.10 | 1.09 | 1.09 | 1.06 | 1.06 | |||||
| Uber Technologies Inc. | 0.84 | 0.78 | 0.85 | 0.86 | 0.86 | 0.89 | 0.96 | 0.97 | 0.96 | 1.00 | 1.03 | 1.04 | 0.99 | 0.93 | 0.82 | 0.65 | |||||
| Union Pacific Corp. | 0.35 | 0.36 | 0.36 | 0.35 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.38 | 0.38 | 0.38 | 0.37 | 0.36 | 0.35 | |||||
| United Parcel Service Inc. | 1.21 | 1.25 | 1.27 | 1.33 | 1.30 | 1.33 | 1.29 | 1.33 | 1.28 | 1.32 | 1.37 | 1.37 | 1.41 | 1.45 | 1.43 | 1.41 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Total asset turnover
= (Operating revenueQ4 2025
+ Operating revenueQ3 2025
+ Operating revenueQ2 2025
+ Operating revenueQ1 2025)
÷ Total assets
= (15,396 + 15,225 + 15,236 + 13,213)
÷ 76,448 = 0.77
2 Click competitor name to see calculations.
The total asset turnover ratio demonstrates a clear upward trend over the observed period, beginning in March 2022 and stabilizing in late 2023 through the most recent period analyzed. This indicates increasing efficiency in utilizing assets to generate revenue.
- Initial Trend (Mar 31, 2022 – Dec 31, 2022)
- The ratio began at 0.42 in March 2022 and exhibited consistent growth, reaching 0.67 by the end of the year. This represents a substantial improvement in asset utilization within a nine-month timeframe, suggesting effective management strategies or increased demand for services.
- Stabilization and Peak (Mar 31, 2023 – Dec 31, 2023)
- The upward momentum continued into the first half of 2023, with the ratio holding steady around 0.69. A peak was reached in December 2023 at 0.76, indicating the highest level of revenue generated per dollar of assets during the analyzed period.
- Recent Performance (Mar 31, 2024 – Dec 31, 2025)
- Following the peak, the ratio experienced a slight fluctuation, remaining within a narrow range of 0.75 to 0.77 for the subsequent seven quarters. The most recent value, recorded in December 2025, is 0.77, demonstrating a sustained high level of asset efficiency. While not exhibiting further growth, the ratio’s stability suggests consistent operational performance.
- Overall Assessment
- The overall trend suggests a positive development in the company’s ability to generate revenue from its asset base. The initial rapid increase followed by a period of stable, high performance indicates successful implementation of strategies to improve asset utilization. The consistency in recent quarters suggests this improved efficiency is being maintained.
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Equity Turnover
United Airlines Holdings Inc., equity turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating revenue | 15,396) | 15,225) | 15,236) | 13,213) | 14,695) | 14,843) | 14,986) | 12,539) | 13,626) | 14,484) | 14,178) | 11,429) | 12,400) | 12,877) | 12,112) | 7,566) | |||||
| Stockholders’ equity | 15,282) | 14,309) | 13,373) | 12,616) | 12,675) | 11,437) | 10,526) | 9,188) | 9,324) | 8,853) | 7,705) | 6,668) | 6,896) | 4,898) | 3,964) | 3,624) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | 3.87 | 4.08 | 4.34 | 4.58 | 4.50 | 4.90 | 5.29 | 5.97 | 5.76 | 5.93 | 6.60 | 7.32 | 6.52 | 8.32 | 8.99 | 8.00 | |||||
| Benchmarks | |||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 3.13 | 3.29 | 3.30 | 3.22 | 3.18 | 3.32 | 3.29 | 3.34 | 3.46 | 3.74 | 3.90 | 3.77 | 3.75 | 3.74 | 3.59 | 3.56 | |||||
| Uber Technologies Inc. | 1.92 | 1.76 | 2.09 | 2.07 | 2.04 | 2.84 | 3.24 | 3.49 | 3.31 | 3.84 | 4.04 | 4.51 | 4.34 | 4.65 | 3.84 | 2.40 | |||||
| Union Pacific Corp. | 1.33 | 1.42 | 1.50 | 1.51 | 1.44 | 1.46 | 1.46 | 1.54 | 1.63 | 1.72 | 1.88 | 2.01 | 2.05 | 2.08 | 1.84 | 1.90 | |||||
| United Parcel Service Inc. | 5.46 | 5.66 | 5.73 | 5.81 | 5.45 | 5.38 | 5.26 | 5.31 | 5.26 | 4.86 | 4.80 | 4.93 | 5.07 | 5.96 | 6.15 | 6.41 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Equity turnover
= (Operating revenueQ4 2025
+ Operating revenueQ3 2025
+ Operating revenueQ2 2025
+ Operating revenueQ1 2025)
÷ Stockholders’ equity
= (15,396 + 15,225 + 15,236 + 13,213)
÷ 15,282 = 3.87
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally declining trend, although with some fluctuation. Initially, the ratio exhibited values in the range of 8.00 to 8.99 during the first half of 2022. Subsequently, a noticeable decrease occurred, falling to 6.52 by the end of 2022. This downward trajectory continued into 2023 and 2024, reaching a low of 4.50 in the fourth quarter of 2024. A slight recovery is observed in 2025, but the ratio remains below the levels seen in 2022.
- Overall Trend
- A consistent downward trend in equity turnover is apparent over the observed timeframe. The ratio decreased from approximately 8.00 in early 2022 to 3.87 by the end of 2025. This suggests a diminishing ability to generate revenue relative to the amount of equity employed.
- Short-Term Fluctuations
- While the overall trend is downward, there are quarterly variations. For example, a slight increase is seen from the first to the second quarter of 2023 (from 7.32 to 6.60), followed by a further decline. These fluctuations may be attributable to seasonal factors or specific operational events impacting revenue generation.
- Magnitude of Change
- The most significant decline in the equity turnover ratio occurred between the third quarter of 2022 (8.32) and the fourth quarter of 2024 (4.50). This represents a substantial decrease, indicating a considerable shift in the relationship between revenue and equity.
- Recent Performance
- The most recent quarters show a stabilization, albeit at a lower level. The ratio moved from 4.08 in the third quarter of 2025 to 3.87 in the fourth quarter of 2025, suggesting the rate of decline may be slowing. However, it remains significantly lower than the initial values observed in 2022.
The observed decrease in equity turnover warrants further investigation to determine the underlying causes. Potential factors could include changes in asset utilization, increased equity levels, or a slowdown in revenue growth relative to equity. Understanding these drivers is crucial for assessing the company’s operational efficiency and financial performance.
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