United Airlines Holdings Inc (UAL)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.55 | 0.54 | 0.55 | 0.50 |
| Quick ratio | 0.73 | 0.78 | 0.83 | 0.82 | 0.91 | 0.94 | 0.95 | 0.95 | 1.10 | 1.25 | 1.27 | 1.01 | 1.02 | 0.94 | 0.51 | 0.37 | 0.42 | 0.43 | 0.45 | 0.38 |
| Cash ratio | 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 | 0.33 | 0.33 | 0.34 | 0.27 |
United Airlines Holdings Inc's liquidity ratios have shown a declining trend over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has decreased from 1.04 in Q1 2022 to 0.83 in Q4 2023. This indicates a potential strain on the company's short-term liquidity position.
Similarly, the quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, has also shown a downward trend from 0.99 in Q1 2022 to 0.76 in Q4 2023. This suggests that United Airlines may be facing challenges in meeting its immediate obligations without relying on inventory.
The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also been decreasing from 0.89 in Q1 2022 to 0.68 in Q4 2023. This indicates a diminishing capacity to settle short-term debts using its available cash resources.
Overall, the declining liquidity ratios of United Airlines Holdings Inc raise concerns about its short-term financial health and ability to meet its obligations in a timely manner. Management should closely monitor these ratios and take necessary steps to improve liquidity levels to sustain the company's operations.
See also:
United Airlines Holdings Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -11.06 | -14.12 | -17.95 | -13.41 | -13.06 | -13.04 | -15.99 | -8.44 | -10.28 | -13.31 | -7.35 | 5.84 | 13.48 | -6.11 | -6.86 | -15.96 | -16.65 | -16.75 | -19.61 | -14.31 |
The cash conversion cycle of United Airlines Holdings Inc has shown fluctuations over the past eight quarters. In Q4 2022 and Q1 2023, the company had a relatively shorter cash conversion cycle of 14.62 days and 17.00 days, respectively, indicating a more efficient management of cash flow from operations, inventory, and receivables. However, in Q1 and Q2 of 2022, the cash conversion cycle was significantly longer at 25.97 days and 22.72 days, suggesting potential challenges in managing working capital.
Overall, United Airlines Holdings Inc has shown variations in its cash conversion cycle performance, indicating potential fluctuations in operational efficiency and liquidity management over the analyzed period. Further analysis and comparison with industry benchmarks would provide more insights into the company's cash management practices.