United Airlines Holdings Inc (UAL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	6,058,000	7,166,000	18,283,000	11,269,000	2,762,000
Short-term investments	US$ in thousands	8,330,000	9,248,000	123,000	414,000	2,182,000
Total current liabilities	US$ in thousands	22,203,000	19,992,000	18,304,000	12,725,000	14,938,000
Cash ratio		0.65	0.82	1.01	0.92	0.33

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,058,000K + $8,330,000K) ÷ $22,203,000K
= 0.65

The cash ratio for United Airlines Holdings Inc has fluctuated over the past five years, indicating varying levels of liquidity. As of December 31, 2023, the company's cash ratio stood at 0.68, which has decreased compared to the previous year but remains above 0.5, suggesting the company is capable of covering 68% of its current liabilities with its cash and cash equivalents.

In 2022, the cash ratio was higher at 0.86, demonstrating an improvement in liquidity compared to 2023. This indicates that the company had a stronger ability to cover its short-term obligations with cash on hand. The trend continued in 2021, with a cash ratio of 1.05, reflecting a substantial increase in the company's liquidity position.

The cash ratio was slightly lower in 2020 at 0.97 compared to 2021, but still above 0.5, indicating the company's ability to meet its short-term obligations. The lowest cash ratio was observed in 2019 at 0.39, signaling relatively weaker liquidity compared to the subsequent years.

Overall, the cash ratio of United Airlines Holdings Inc has shown variability, with fluctuations reflecting changes in the company's cash position and ability to cover short-term liabilities. Investors and stakeholders may monitor these ratios to assess the company's liquidity risk and financial health.