Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
United Airlines Holdings Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | United Airlines Holdings Inc. inventory turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | United Airlines Holdings Inc. receivables turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | United Airlines Holdings Inc. payables turnover ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | United Airlines Holdings Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | United Airlines Holdings Inc. number of days of inventory outstanding improved from 2020 to 2021 and from 2021 to 2022. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | United Airlines Holdings Inc. number of days of receivables outstanding improved from 2020 to 2021 and from 2021 to 2022. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | United Airlines Holdings Inc. operating cycle improved from 2020 to 2021 and from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | United Airlines Holdings Inc. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022. |
Inventory Turnover
United Airlines Holdings Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | 44,955) | 24,634) | 15,355) | 43,259) | 41,303) | |
| Aircraft fuel, spare parts and supplies, less obsolescence allowance | 1,109) | 983) | 932) | 1,072) | 985) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 40.54 | 25.06 | 16.48 | 40.35 | 41.93 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| FedEx Corp. | 146.80 | 143.03 | 121.01 | 126.03 | 124.67 | |
| Union Pacific Corp. | 33.57 | 35.11 | 30.62 | 28.91 | — | |
| United Parcel Service Inc. | 112.87 | 135.69 | 136.50 | 145.00 | — | |
| Inventory Turnover, Sector | ||||||
| Transportation | 105.15 | 110.34 | 97.56 | 95.15 | — | |
| Inventory Turnover, Industry | ||||||
| Industrials | 3.98 | 3.88 | 3.63 | 3.97 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Inventory turnover = Operating revenue ÷ Aircraft fuel, spare parts and supplies, less obsolescence allowance
= 44,955 ÷ 1,109 = 40.54
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | United Airlines Holdings Inc. inventory turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Receivables Turnover
United Airlines Holdings Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | 44,955) | 24,634) | 15,355) | 43,259) | 41,303) | |
| Receivables, less allowance for credit losses | 1,801) | 1,663) | 1,295) | 1,364) | 1,346) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 24.96 | 14.81 | 11.86 | 31.71 | 30.69 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| FedEx Corp. | 7.88 | 6.96 | 6.85 | 7.65 | 7.72 | |
| Uber Technologies Inc. | 11.47 | 7.16 | 10.38 | 11.65 | — | |
| Union Pacific Corp. | 13.15 | 12.66 | 12.98 | 13.61 | — | |
| United Parcel Service Inc. | 7.97 | 7.76 | 7.87 | 7.76 | — | |
| Receivables Turnover, Sector | ||||||
| Transportation | 8.61 | 7.66 | 7.88 | 8.36 | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 7.66 | 7.53 | 7.37 | 7.61 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Receivables turnover = Operating revenue ÷ Receivables, less allowance for credit losses
= 44,955 ÷ 1,801 = 24.96
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | United Airlines Holdings Inc. receivables turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Payables Turnover
United Airlines Holdings Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | 44,955) | 24,634) | 15,355) | 43,259) | 41,303) | |
| Accounts payable | 3,395) | 2,562) | 1,595) | 2,703) | 2,363) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 13.24 | 9.62 | 9.63 | 16.00 | 17.48 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| FedEx Corp. | 23.20 | 21.86 | 21.17 | 23.00 | 21.99 | |
| Uber Technologies Inc. | 27.00 | 10.87 | 21.93 | 26.50 | — | |
| Union Pacific Corp. | 31.73 | 28.99 | 31.92 | 28.98 | — | |
| United Parcel Service Inc. | 13.36 | 12.93 | 13.11 | 13.34 | — | |
| Payables Turnover, Sector | ||||||
| Transportation | 18.26 | 16.37 | 16.89 | 17.98 | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.44 | 7.66 | 7.35 | 7.38 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Payables turnover = Operating revenue ÷ Accounts payable
= 44,955 ÷ 3,395 = 13.24
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | United Airlines Holdings Inc. payables turnover ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Working Capital Turnover
United Airlines Holdings Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 20,058) | 21,834) | 14,800) | 8,194) | 7,194) | |
| Less: Current liabilities | 19,992) | 18,304) | 12,725) | 14,938) | 13,212) | |
| Working capital | 66) | 3,530) | 2,075) | (6,744) | (6,018) | |
| Operating revenue | 44,955) | 24,634) | 15,355) | 43,259) | 41,303) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 681.14 | 6.98 | 7.40 | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| FedEx Corp. | 15.35 | 12.13 | 11.46 | 17.11 | 17.62 | |
| Uber Technologies Inc. | 80.50 | — | 3.69 | 1.71 | — | |
| Union Pacific Corp. | — | — | 476.41 | — | — | |
| United Parcel Service Inc. | 24.61 | 13.21 | 26.45 | 43.84 | — | |
| Working Capital Turnover, Sector | ||||||
| Transportation | 27.86 | 18.55 | 15.01 | 13.65 | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 9.65 | 6.77 | 4.43 | 9.88 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Working capital turnover = Operating revenue ÷ Working capital
= 44,955 ÷ 66 = 681.14
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | United Airlines Holdings Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Inventory Processing Period
United Airlines Holdings Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 40.54 | 25.06 | 16.48 | 40.35 | 41.93 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 9 | 15 | 22 | 9 | 9 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| FedEx Corp. | 2 | 3 | 3 | 3 | 3 | |
| Union Pacific Corp. | 11 | 10 | 12 | 13 | — | |
| United Parcel Service Inc. | 3 | 3 | 3 | 3 | — | |
| Average Inventory Processing Period, Sector | ||||||
| Transportation | 3 | 3 | 4 | 4 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 92 | 94 | 100 | 92 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 40.54 = 9
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | United Airlines Holdings Inc. number of days of inventory outstanding improved from 2020 to 2021 and from 2021 to 2022. |
Average Receivable Collection Period
United Airlines Holdings Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 24.96 | 14.81 | 11.86 | 31.71 | 30.69 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 15 | 25 | 31 | 12 | 12 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| FedEx Corp. | 46 | 52 | 53 | 48 | 47 | |
| Uber Technologies Inc. | 32 | 51 | 35 | 31 | — | |
| Union Pacific Corp. | 28 | 29 | 28 | 27 | — | |
| United Parcel Service Inc. | 46 | 47 | 46 | 47 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Transportation | 42 | 48 | 46 | 44 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 48 | 48 | 49 | 48 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 24.96 = 15
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | United Airlines Holdings Inc. number of days of receivables outstanding improved from 2020 to 2021 and from 2021 to 2022. |
Operating Cycle
United Airlines Holdings Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 9 | 15 | 22 | 9 | 9 | |
| Average receivable collection period | 15 | 25 | 31 | 12 | 12 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 24 | 40 | 53 | 21 | 21 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| FedEx Corp. | 48 | 55 | 56 | 51 | 50 | |
| Union Pacific Corp. | 39 | 39 | 40 | 40 | — | |
| United Parcel Service Inc. | 49 | 50 | 49 | 50 | — | |
| Operating Cycle, Sector | ||||||
| Transportation | 45 | 51 | 50 | 48 | — | |
| Operating Cycle, Industry | ||||||
| Industrials | 140 | 142 | 149 | 140 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 9 + 15 = 24
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | United Airlines Holdings Inc. operating cycle improved from 2020 to 2021 and from 2021 to 2022. |
Average Payables Payment Period
United Airlines Holdings Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 13.24 | 9.62 | 9.63 | 16.00 | 17.48 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 28 | 38 | 38 | 23 | 21 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| FedEx Corp. | 16 | 17 | 17 | 16 | 17 | |
| Uber Technologies Inc. | 14 | 34 | 17 | 14 | — | |
| Union Pacific Corp. | 12 | 13 | 11 | 13 | — | |
| United Parcel Service Inc. | 27 | 28 | 28 | 27 | — | |
| Average Payables Payment Period, Sector | ||||||
| Transportation | 20 | 22 | 22 | 20 | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 49 | 48 | 50 | 49 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.24 = 28
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
United Airlines Holdings Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 9 | 15 | 22 | 9 | 9 | |
| Average receivable collection period | 15 | 25 | 31 | 12 | 12 | |
| Average payables payment period | 28 | 38 | 38 | 23 | 21 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -4 | 2 | 15 | -2 | 0 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| FedEx Corp. | 32 | 38 | 39 | 35 | 33 | |
| Union Pacific Corp. | 27 | 26 | 29 | 27 | — | |
| United Parcel Service Inc. | 22 | 22 | 21 | 23 | — | |
| Cash Conversion Cycle, Sector | ||||||
| Transportation | 25 | 29 | 28 | 28 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 91 | 94 | 99 | 91 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 9 + 15 – 28 = -4
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | United Airlines Holdings Inc. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022. |