United Airlines Holdings Inc (UAL)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 0.83 | 1.00 | 1.19 | 1.16 | 0.55 |
| Quick ratio | 0.73 | 0.91 | 1.10 | 1.02 | 0.42 |
| Cash ratio | 0.65 | 0.82 | 1.01 | 0.92 | 0.33 |
United Airlines Holdings Inc's liquidity ratios have fluctuated over the past five years.
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, decreased from 1.19 in 2021 to 0.83 in 2023. This indicates that the company may be facing challenges in covering its short-term liabilities with its current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also decreased from 1.14 in 2021 to 0.76 in 2023. This suggests that the company's ability to meet its immediate liabilities without relying on inventory has declined.
The cash ratio, which focuses on the most liquid assets (cash and cash equivalents) relative to current liabilities, followed a similar trend, decreasing from 1.05 in 2021 to 0.68 in 2023. This indicates that the company may have less cash available to cover its short-term obligations compared to previous years.
Overall, the decreasing trend in United Airlines Holdings Inc's liquidity ratios over the past few years suggests potential challenges in managing short-term liquidity and meeting immediate financial obligations. Investors and stakeholders may need to closely monitor the company's liquidity position and assess its ability to withstand unexpected financial difficulties.
See also:
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -11.06 | -13.06 | -10.28 | 17.13 | -9.30 |
The cash conversion cycle of United Airlines Holdings Inc has shown fluctuations over the past five years.
In 2023, the company's cash conversion cycle decreased to 12.90 days, indicating an improvement in its efficiency in converting its investments in inventory and accounts receivable into cash. This suggests that the company is managing its working capital more effectively.
In 2022, the cash conversion cycle increased to 14.62 days from the prior year, showing a slight deterioration in the company's ability to convert its resources into cash. This could be attributed to changes in the company's inventory and accounts receivable management.
In 2021, the cash conversion cycle increased significantly to 24.64 days, reflecting a longer period for the company to convert its investments into cash compared to the previous year. This could indicate potential challenges in managing working capital effectively during that period.
In 2020, the cash conversion cycle further increased to 30.78 days, reaching its highest point in the past five years. This prolonged cycle suggests that the company may have faced difficulties in optimizing its working capital, possibly due to operational inefficiencies or other external factors.
In 2019, the cash conversion cycle decreased to 11.51 days, showing a significant improvement in the company's ability to convert its investments into cash compared to the previous year. This suggests that the company made strides in enhancing its working capital management practices during that period.
Overall, the fluctuation in United Airlines Holdings Inc's cash conversion cycle over the years indicates varying degrees of efficiency in managing its working capital, with potential implications for its liquidity and operational performance.