United Airlines Holdings Inc (UAL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	21.80	26.64	16.02	14.89	26.45
Receivables turnover	27.37	24.04	13.87	10.56	31.20
Payables turnover	8.87	8.70	6.15	8.70	10.49
Working capital turnover	—	656.09	6.53	6.59	—

United Airlines Holdings Inc's inventory turnover ratio has consistently remained at 0.00 for the past five years, indicating that the company is not efficiently managing its inventory levels relative to its sales. This could suggest issues with inventory management or potentially excess inventory on hand.

In contrast, the receivables turnover ratio has shown an increasing trend over the years, reaching 28.30 in 2023. This indicates that United Airlines has been collecting its accounts receivables more frequently compared to previous years, which is a positive sign of effective credit management and timely collection of revenues.

The payables turnover ratio has remained at 0.00 for the past five years, indicating that the company may not have an active policy of managing its accounts payables turnover. This could potentially affect the company's relationships with suppliers and its ability to negotiate favorable credit terms.

The working capital turnover ratio, which is not available for one year and very high for another, shows the relationship between net sales and working capital. A high turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales, which can be a positive indicator of operational efficiency.

Overall, while United Airlines shows strengths in collecting receivables and potentially utilizing working capital efficiently, there are areas, such as inventory and payables turnover, where improvements or further attention may be needed to optimize the company's operational efficiency and financial performance.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	16.74	13.70	22.78	24.51	13.80
Days of sales outstanding (DSO)	days	13.34	15.18	26.31	34.57	11.70
Number of days of payables	days	41.14	41.94	59.37	41.95	34.80

Days of inventory on hand (DOH) for United Airlines Holdings Inc are not provided in the table. However, we can analyze Days of Sales Outstanding (DSO), which measures how long on average it takes for the company to collect revenue from sales.

- In 2023, the DSO is 12.90 days, showing that the company has improved its collection process compared to 2022 when it was 14.62 days. This indicates that United Airlines is collecting revenue more efficiently, which is a positive sign.

- Looking at the trend over the past five years, there is some fluctuation in DSO, with a significant increase in 2021 to 24.64 days before decreasing in 2023. Generally, a lower DSO is preferred as it indicates faster collection of revenue.

Number of days of payables data is not provided in the table, which would have helped in understanding the company's management of its payables.

In conclusion, United Airlines Holdings Inc has shown improvements in its Days of Sales Outstanding, indicating efficient collection of revenue. Without data on Days of Inventory on Hand and Days of Payables, a full assessment of the company's activity ratios is limited.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	1.30	1.26	0.72	0.43	1.41
Total asset turnover	0.73	0.64	0.34	0.23	0.81

The long-term activity ratios for United Airlines Holdings Inc indicate the efficiency with which the company is utilizing its fixed assets and total assets to generate revenue over the years.

The fixed asset turnover ratio has been fluctuating over the past five years, ranging from 0.49 to 1.43. This ratio measures how effectively the company is using its fixed assets to generate sales. A higher ratio signifies better asset utilization. In 2023, the ratio stands at 1.35, showing an improvement compared to the previous year. This suggests that United Airlines is generating $1.35 in revenue for every dollar invested in fixed assets. The increase in the ratio is a positive sign as it indicates improved efficiency in utilizing fixed assets.

On the other hand, the total asset turnover ratio has also varied significantly, ranging from 0.26 to 0.82 over the same period. This ratio reflects how efficiently the company is using all of its assets to generate sales. The increase in this ratio also indicates a more efficient use of total assets to generate revenue. In 2023, the total asset turnover ratio is 0.76, which is an improvement from the previous year, signaling that United Airlines is generating $0.76 in revenue for every dollar invested in total assets.

Overall, while the fixed asset turnover ratio has shown fluctuations, the total asset turnover ratio has generally improved, indicating that United Airlines has been more efficient in utilizing both fixed and total assets to generate revenue over the years. This improvement suggests enhanced operational efficiency and better management of assets within the company.