United Airlines Holdings Inc (UAL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	23.95	24.68	30.94	24.33	21.87
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	681.14	6.98	7.40

Based on the provided data for United Airlines Holdings Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. United Airlines' inventory turnover has been increasing steadily over the years, from 21.87 in 2020 to 23.95 in 2024. This indicates that the company is selling its inventory more frequently, which is a positive sign of efficiency.

2. Receivables Turnover:
- Unfortunately, data is not available for receivables turnover for any of the years specified. This ratio typically reflects how quickly a company collects payments from its customers. The absence of data limits our ability to assess United Airlines' efficiency in collecting receivables.

3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is also not provided. Payables turnover ratio helps in understanding how efficiently a company manages its payables and settles its trade payables.

4. Working Capital Turnover:
- The working capital turnover ratio compares a company's sales to its working capital. In 2022, the working capital turnover ratio increased significantly to 681.14, indicating that United Airlines generated a substantial amount of revenue relative to its working capital. However, data for the subsequent years is unavailable, making it difficult to track the trend in working capital efficiency.

In conclusion, while United Airlines' inventory turnover has been improving over time, the lack of data for receivables turnover, payables turnover, and incomplete data for working capital turnover limits the comprehensive analysis of the company's overall activity efficiency. It is essential for the company to provide more detailed financial information for a better evaluation of its operational performance.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	15.24	14.79	11.80	15.00	16.69
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

The activity ratios for United Airlines Holdings Inc are as follows based on the provided data:

1. Days of Inventory on Hand (DOH):
- December 31, 2020: 16.69 days
- December 31, 2021: 15.00 days
- December 31, 2022: 11.80 days
- December 31, 2023: 14.79 days
- December 31, 2024: 15.24 days

The DOH ratio measures how many days, on average, it takes for the company to sell its inventory. A lower DOH indicates that the company is managing its inventory efficiently, selling its products faster, and reducing the risk of inventory obsolescence.

United Airlines Holdings Inc's DOH has been decreasing over the years, indicating a more efficient management of inventory. The significant drop from 2020 to 2022 suggests improved inventory turnover and potentially more effective inventory management practices.

2. Days of Sales Outstanding (DSO):
- None provided

The Days of Sales Outstanding ratio indicates how long, on average, it takes for a company to collect its accounts receivable. Without the data for DSO, it is not possible to analyze the efficiency of United Airlines Holdings Inc in collecting payments from its customers.

3. Number of Days of Payables:
- None provided

The Number of Days of Payables ratio measures how long a company takes to pay its suppliers. Without the data for this ratio, we cannot assess the company's efficiency in managing its payables.

In summary, based on the available information, United Airlines Holdings Inc has shown improvement in its inventory management over the years, but further analysis of DSO and payables turnover is needed to provide a comprehensive assessment of its overall activity efficiency.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	0.82	0.67	0.43
Total asset turnover	0.77	0.76	0.67	0.36	0.26

The Fixed Asset Turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. From the provided data, we observe an increasing trend in United Airlines Holdings Inc's Fixed Asset Turnover ratio over the years, from 0.43 in 2020 to 0.82 in 2022. This indicates that the company has been more effective in generating revenue from its fixed assets.

On the other hand, the Total Asset Turnover ratio evaluates the company's overall efficiency in generating sales from all its assets. United Airlines Holdings Inc's Total Asset Turnover ratio also displays a rising trend, starting at 0.26 in 2020 and reaching 0.77 in 2024. This indicates that the company has been increasingly efficient in utilizing all its assets to generate revenue.

Overall, the increasing trends in both Fixed Asset Turnover and Total Asset Turnover ratios suggest that United Airlines Holdings Inc has been improving its operational efficiency and effectively leveraging its assets to drive revenue growth over the years.