United Airlines Holdings Inc (UAL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.81 | 0.79 | 0.77 | 0.75 | 0.83 | 0.89 | 0.91 | 0.91 | 1.00 | 1.03 | 1.04 | 1.04 | 1.19 | 1.36 | 1.37 | 1.13 | 1.16 | 1.04 | 0.61 | 0.49 |
| Quick ratio | 0.62 | 0.61 | 0.59 | 0.57 | 0.65 | 0.69 | 0.75 | 0.73 | 0.82 | 0.85 | 0.86 | 0.86 | 1.01 | 1.15 | 1.17 | 0.92 | 0.92 | 0.87 | 0.46 | 0.32 |
| Cash ratio | 0.62 | 0.61 | 0.59 | 0.57 | 0.65 | 0.69 | 0.75 | 0.73 | 0.82 | 0.85 | 0.86 | 0.86 | 1.01 | 1.15 | 1.17 | 0.92 | 0.92 | 0.87 | 0.46 | 0.32 |
The liquidity ratios of United Airlines Holdings Inc show a fluctuating trend over the reported periods. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has improved from 0.49 as of March 31, 2020, to 1.00 as of December 31, 2022, before declining to 0.81 as of December 31, 2024.
The quick ratio, which provides a more stringent liquidity measure by excluding inventory from current assets, also indicates a similar pattern with an increase from 0.32 as of March 31, 2020, to 0.82 as of December 31, 2022, followed by a decline to 0.62 as of December 31, 2024.
The cash ratio, reflecting the company's ability to meet its short-term obligations using its most liquid assets, has shown comparable movements, increasing from 0.32 as of March 31, 2020, to 0.82 as of December 31, 2022, and then dropping to 0.62 as of December 31, 2024.
Overall, the liquidity ratios of United Airlines Holdings Inc have demonstrated variability over the periods analyzed, with some improvement followed by a downward trend towards the end of the reporting period, indicating the necessity for careful monitoring of the company's short-term liquidity position.
See also:
United Airlines Holdings Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 14.37 | 12.79 | 13.22 | 14.12 | 14.04 | 14.76 | 12.90 | 12.03 | 11.80 | 12.58 | 14.19 | 14.90 | 15.00 | 15.99 | 16.76 | 18.34 | 16.69 | 14.96 | 12.98 | 12.71 |
The cash conversion cycle of United Airlines Holdings Inc has shown fluctuations over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle has varied between 11.80 days and 18.34 days, indicating some volatility in the company's operational efficiency in managing its working capital.
The cash conversion cycle reached its peak at 18.34 days on March 31, 2021, suggesting a longer period for converting investments into cash. However, it then decreased gradually to 11.80 days by December 31, 2022, showcasing improved efficiency in managing working capital during that period.
Overall, the downward trend from 2021 to 2022 followed by a slight increase in 2023 and 2024 may imply that United Airlines Holdings Inc has been making efforts to streamline its operational processes to enhance cash flow generation and working capital management. An optimal cash conversion cycle is essential for the company to maintain liquidity, minimize financing costs, and optimize its operational performance.