United Airlines Holdings Inc (UAL)

Total asset turnover

		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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	57,063,000	55,994,000	55,635,000	54,827,000	53,717,000	52,491,000	50,884,000	48,818,000	44,955,000	40,747,000	35,620,000	28,979,000	24,634,000	19,854,000	14,593,000	10,597,000	15,355,000	22,831,000	31,722,000	41,649,000
Total assets	US$ in thousands	74,083,000	72,640,000	73,254,000	71,902,000	71,104,000	73,153,000	73,341,000	70,417,000	67,358,000	68,968,000	70,381,000	69,038,000	68,175,000	69,294,000	71,049,000	61,662,000	59,548,000	61,189,000	54,901,000	53,055,000
Total asset turnover		0.77	0.77	0.76	0.76	0.76	0.72	0.69	0.69	0.67	0.59	0.51	0.42	0.36	0.29	0.21	0.17	0.26	0.37	0.58	0.79

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $57,063,000K ÷ $74,083,000K
= 0.77

Total asset turnover measures the efficiency of a company in generating sales revenue from its assets. In the case of United Airlines Holdings Inc, the total asset turnover ratio has shown a declining trend from 0.79 in March 2020 to 0.77 in December 2024, fluctuating within a narrow range during this period.

The declining trend indicates that United Airlines may be experiencing challenges in effectively utilizing its assets to generate revenue. A lower total asset turnover ratio suggests that the company may not be utilizing its assets efficiently to generate sales, which could be attributed to various factors such as increasing asset base without proportional revenue growth, operational inefficiencies, or changes in business strategies.

While the ratio has stayed relatively stable in the recent quarters, United Airlines may need to focus on improving its asset utilization efficiency to potentially enhance profitability and overall financial performance. Further analysis of the company's operational efficiency, asset management practices, and revenue generation strategies could provide deeper insights into the factors influencing the total asset turnover ratio and identify areas for improvement.