United Airlines Holdings Inc (UAL)
Quick ratio
| 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 | US$ in thousands | 6,058,000 | 7,478,000 | 9,605,000 | 7,634,000 | 7,166,000 | 11,258,000 | 16,885,000 | 18,468,000 | 18,283,000 | 19,256,000 | 20,838,000 | 12,666,000 | 11,269,000 | 13,150,000 | 6,505,000 | 3,442,000 | 2,762,000 | 2,959,000 | 3,221,000 | 1,848,000 |
| Short-term investments | US$ in thousands | 8,330,000 | 9,608,000 | 9,533,000 | 9,522,000 | 9,248,000 | 7,437,000 | 3,190,000 | 211,000 | 123,000 | 166,000 | 230,000 | 309,000 | 414,000 | 552,000 | 958,000 | 1,779,000 | 2,182,000 | 2,167,000 | 2,223,000 | 2,219,000 |
| Receivables | US$ in thousands | 1,898,000 | 2,193,000 | 2,004,000 | 2,274,000 | 1,801,000 | 2,034,000 | 2,217,000 | 2,062,000 | 1,663,000 | 1,709,000 | 1,793,000 | 1,389,000 | 1,295,000 | 1,171,000 | 857,000 | 792,000 | 1,364,000 | 1,617,000 | 1,762,000 | 1,789,000 |
| Total current liabilities | US$ in thousands | 22,203,000 | 24,756,000 | 25,575,000 | 23,635,000 | 19,992,000 | 21,989,000 | 23,444,000 | 21,788,000 | 18,304,000 | 16,935,000 | 18,064,000 | 14,167,000 | 12,725,000 | 15,791,000 | 16,395,000 | 16,087,000 | 14,938,000 | 15,691,000 | 16,078,000 | 15,335,000 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,058,000K
+ $8,330,000K
+ $1,898,000K)
÷ $22,203,000K
= 0.73
The quick ratio measures a company's ability to meet its short-term financial obligations using its most liquid assets. A higher quick ratio indicates a stronger ability to cover its short-term liabilities.
Looking at the trend in United Airlines Holdings Inc's quick ratio over the past eight quarters, we observe a gradual decline from 0.99 in Q1 2022 to 0.76 in Q4 2023. This decline may raise concerns about the company's short-term liquidity position.
A quick ratio below 1.0 suggests that United Airlines Holdings Inc may have difficulty meeting its short-term obligations with its current liquid assets alone. Investors and creditors may perceive a quick ratio below 1.0 as a potential risk factor, as it implies a reliance on other sources of liquidity to cover short-term liabilities.
It is essential for United Airlines Holdings Inc to closely monitor its liquidity position and work towards improving its quick ratio to ensure financial stability and meet its obligations in the short term. Further analysis of the company's cash management practices and working capital efficiency may provide insights into improving its quick ratio in the future.
Peer comparison
Dec 31, 2023