United Airlines Holdings Inc (UAL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.03% | 28.29% | 23.67% | 2.93% | -32.76% |
| Operating profit margin | 8.93% | 7.84% | 0.73% | -1.49% | -41.41% |
| Pretax margin | 7.30% | 6.31% | 2.20% | -10.38% | -57.45% |
| Net profit margin | 5.52% | 4.87% | 1.64% | -7.97% | -46.04% |
Based on the provided data, United Airlines Holdings Inc's profitability ratios have shown significant improvement over the years. The gross profit margin, which indicates the company's profitability after accounting for the cost of goods sold, has been steadily increasing from -32.76% in December 31, 2020 to 34.03% in December 31, 2024.
Similarly, the operating profit margin, which reflects the company's ability to generate operating income from sales, has also shown positive trends, moving from -41.41% in December 31, 2020 to 8.93% in December 31, 2024.
Furthermore, the pretax margin, which represents the company's profitability before taxes, has exhibited improvement over the years, increasing from -57.45% in December 31, 2020 to 7.30% in December 31, 2024.
Lastly, the net profit margin, which indicates the company's overall profitability after all expenses have been deducted, has shown a similar upward trajectory, rising from -46.04% in December 31, 2020 to 5.52% in December 31, 2024.
Overall, the consistent improvement in United Airlines Holdings Inc's profitability ratios indicates an enhanced financial performance and efficiency in managing costs over the specified period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.88% | 5.92% | 0.49% | -0.54% | -10.68% |
| Return on assets (ROA) | 4.25% | 3.68% | 1.09% | -2.88% | -11.87% |
| Return on total capital | 43.94% | 55.35% | 38.62% | -19.49% | -131.38% |
| Return on equity (ROE) | 24.84% | 28.08% | 10.69% | -39.05% | -118.61% |
United Airlines Holdings Inc has shown a steady improvement in its profitability ratios over the years based on the provided data.
- Operating Return on Assets (Operating ROA) has moved from a negative figure of -10.68% as of December 31, 2020, to a positive figure of 6.88% as of December 31, 2024, indicating that the company has become more efficient in generating profits from its assets over this period.
- Return on Assets (ROA) also shows a similar trend, increasing from -11.87% in 2020 to 4.25% in 2024. This improvement signifies the company's ability to generate more profit relative to its total assets.
- Return on Total Capital has shown substantial growth, from a negative value of -131.38% in 2020 to a positive value of 43.94% in 2024. This indicates that the company has been able to effectively utilize its capital to generate returns for its investors and creditors.
- Return on Equity (ROE) has also demonstrated a positive trajectory, moving from a negative figure of -118.61% in 2020 to 24.84% in 2024. This suggests an enhancement in the company's ability to generate profit for its shareholders based on their invested equity.
Overall, the upward trend in these profitability ratios reflects United Airlines Holdings Inc's improving financial performance and efficiency in utilizing its assets and capital to generate returns for its stakeholders.