United Airlines Holdings Inc (UAL)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.81 | 0.83 | 1.00 | 1.19 | 1.16 |
| Quick ratio | 0.62 | 0.65 | 0.82 | 1.01 | 0.92 |
| Cash ratio | 0.62 | 0.65 | 0.82 | 1.01 | 0.92 |
United Airlines Holdings Inc's current ratio has been fluctuating over the years, ranging from 1.16 in December 2020 to 0.81 in December 2024. This indicates the company's ability to cover its short-term obligations with its current assets has declined.
The quick ratio, which excludes inventory from current assets, shows a similar trend, decreasing from 0.92 in December 2020 to 0.62 in December 2024. This may suggest a potential strain on the company's ability to meet its short-term financial obligations without relying on inventory liquidation.
The cash ratio, which is the most stringent liquidity measure as it only considers cash and cash equivalents, has also shown a decline from 0.92 in December 2020 to 0.62 in December 2024. This indicates a decreasing ability of United Airlines Holdings Inc to meet its immediate obligations with its readily available cash resources.
Overall, the decreasing trend in these liquidity ratios reflects a potential liquidity challenge for United Airlines Holdings Inc, highlighting the importance of closely monitoring its liquidity position and managing its short-term obligations effectively.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 15.24 | 14.79 | 11.80 | 15.00 | 16.69 |
The cash conversion cycle of United Airlines Holdings Inc has shown a decreasing trend over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 16.69 days, indicating that it took approximately 16.69 days for the company to convert its investments in raw materials into cash inflows from sales.
By December 31, 2021, the cash conversion cycle improved to 15.00 days, suggesting more efficient management of inventory, accounts receivable, and accounts payable. This trend continued with further optimization, as evidenced by a decrease to 11.80 days by December 31, 2022, showing enhanced operational efficiency in converting investments into cash.
However, there was a slight increase in the cash conversion cycle to 14.79 days by December 31, 2023, indicating a temporary slowdown in the cycle. By December 31, 2024, the cash conversion cycle increased slightly to 15.24 days, potentially due to changes in market conditions or operational disruptions.
Overall, the decreasing trend in the cash conversion cycle from 2020 to 2022 reflects United Airlines Holdings Inc's effectiveness in managing its working capital and converting inputs into cash inflows. The temporary fluctuations in 2023 and 2024 may warrant further investigation to understand the underlying factors influencing the company's cash conversion cycle.