United Airlines Holdings Inc (UAL)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	8,769,000	6,058,000	7,166,000	18,283,000	11,269,000
Short-term investments	US$ in thousands	5,706,000	8,330,000	9,248,000	123,000	414,000
Total current liabilities	US$ in thousands	23,314,000	22,203,000	19,992,000	18,304,000	12,725,000
Cash ratio		0.62	0.65	0.82	1.01	0.92

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,769,000K + $5,706,000K) ÷ $23,314,000K
= 0.62

The cash ratio of United Airlines Holdings Inc has fluctuated over the past five years.

As of December 31, 2020, the cash ratio was 0.92, indicating that the company had $0.92 in cash and cash equivalents for every $1 of current liabilities. This suggests a relatively healthy liquidity position at that time.

By December 31, 2021, the cash ratio had improved to 1.01, showing further strengthening of the company's ability to pay off its short-term obligations with its available cash resources.

However, the cash ratio declined to 0.82 by December 31, 2022, and then further dropped to 0.65 by December 31, 2023. These lower ratios may indicate potential liquidity challenges, as the company had less cash on hand in relation to its current liabilities during these periods.

As of December 31, 2024, the cash ratio decreased even more to 0.62, signaling a continued decrease in the company's ability to cover its short-term obligations with its existing cash holdings.

Overall, the trend in United Airlines Holdings Inc's cash ratio suggests some variability in its liquidity position over the reviewed period, with a general decrease in ability to meet short-term obligations solely with cash and cash equivalents. This could be an area of concern for investors and creditors monitoring the company's financial health.