United Airlines Holdings Inc (UAL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	51,951,000	43,302,000	23,067,000	13,673,000	42,560,000
Property, plant and equipment	US$ in thousands	39,815,000	34,448,000	32,074,000	31,466,000	30,170,000
Fixed asset turnover		1.30	1.26	0.72	0.43	1.41

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $51,951,000K ÷ $39,815,000K
= 1.30

United Airlines Holdings Inc's fixed asset turnover has varied significantly over the past five years, with a range from 0.49 to 1.43. The ratio measures the efficiency of the company in generating revenue from its fixed assets.

In 2023, the fixed asset turnover ratio increased to 1.35 from 1.31 in 2022, suggesting that the company was able to generate more revenue for each dollar invested in fixed assets. This improvement may indicate better utilization of its assets or increased sales efficiency.

The ratio was notably lower in 2021 and 2020 at 0.77 and 0.49, respectively, indicating a decrease in the company's ability to generate revenue from its fixed assets during those years. This could potentially be due to underutilization of assets, asset impairments, or ineffective asset management strategies.

The highest fixed asset turnover of 1.43 was recorded in 2019, indicating a strong performance in generating revenue relative to its investment in fixed assets. This could be attributed to effective operational efficiency and asset utilization during that period.

Overall, United Airlines Holdings Inc's fixed asset turnover has shown fluctuations over the years, highlighting the importance of closely monitoring asset management strategies to enhance efficiency and profitability.