United Airlines Holdings Inc (UAL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.50% | 31.77% | 31.72% | -1.50% | 33.38% |
| Operating profit margin | 8.11% | 5.40% | -4.43% | -46.51% | 10.11% |
| Pretax margin | 6.52% | 2.29% | -11.09% | -64.52% | 9.20% |
| Net profit margin | 5.04% | 1.70% | -8.51% | -51.70% | 7.07% |
United Airlines Holdings Inc has demonstrated consistent gross profit margins of 100% over the past five years, indicating efficient cost management in generating revenue. However, the company's operating profit margin has fluctuated significantly, with a notable improvement from -58.45% in 2020 to 9.61% in 2023. This suggests that United Airlines has been able to better control its operating expenses and increase profitability from its core business activities.
The pretax margin also reflects improvement, increasing from -57.45% in 2020 to 6.31% in 2023, indicating more effective management of both operating expenses and interest expenses. This improvement in pretax margin indicates the company's ability to generate profits before considering tax implications.
The net profit margin, a key indicator of overall profitability, has shown a positive trend, increasing from -46.04% in 2020 to 4.87% in 2023. This suggests that United Airlines Holdings Inc has successfully turned its revenue into bottom-line profit, showcasing the company's ability to effectively manage costs and enhance profitability for its shareholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.92% | 3.47% | -1.50% | -10.68% | 8.18% |
| Return on assets (ROA) | 3.68% | 1.09% | -2.88% | -11.87% | 5.72% |
| Return on total capital | 12.25% | 6.64% | -2.89% | -20.65% | 17.43% |
| Return on equity (ROE) | 28.08% | 10.69% | -39.05% | -118.61% | 26.09% |
United Airlines Holdings Inc has shown improvement in its profitability ratios over the last five years.
Operating return on assets (Operating ROA) has increased steadily from -15.07% in 2020 to 7.26% in 2023, indicating that the company is generating more operating income for each dollar of assets employed in its operations.
Return on assets (ROA) also improved over the years, from -11.87% in 2020 to 3.68% in 2023. This shows that the company is becoming more efficient in generating profits from its total assets.
Return on total capital increased from -27.10% in 2020 to 13.35% in 2023. This indicates that the company is generating a better return for both debt and equity holders.
Return on equity (ROE) has shown significant improvement, from -118.61% in 2020 to 28.08% in 2023. This means that the company is becoming more profitable for its shareholders.
Overall, the improving profitability ratios suggest that United Airlines Holdings Inc is managing its assets more effectively and generating higher returns for its investors.