United Airlines Holdings Inc (UAL)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	3,149,000	2,618,000	737,000	-1,964,000	-7,069,000
Total stockholders’ equity	US$ in thousands	12,675,000	9,324,000	6,896,000	5,029,000	5,960,000
ROE		24.84%	28.08%	10.69%	-39.05%	-118.61%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $3,149,000K ÷ $12,675,000K
= 24.84%

United Airlines Holdings Inc's return on equity (ROE) has shown significant fluctuations over the past five years. In December 31, 2020, the ROE was at a concerning -118.61%, indicating that the company's net income was not sufficient to cover shareholder equity, resulting in a negative return. However, there was an improvement in December 31, 2021, with a less negative ROE of -39.05%.

The trend continued to improve in the following years, with a notable turnaround in December 31, 2022, where the ROE turned positive at 10.69%. This suggests that the company started generating profits that exceed the shareholders' equity investment, reflecting a more efficient utilization of the equity.

In December 31, 2023, the ROE further increased to 28.08%, indicating a healthier financial performance and higher profitability relative to the equity invested. This upward trend was maintained in December 31, 2024, with an ROE of 24.84%, although slightly lower than the previous year.

Overall, United Airlines Holdings Inc's ROE has shown a volatile but improving trend over the years, with the company progressing from negative returns to positive returns, eventually reaching levels that indicate efficient utilization of equity and profitability. It suggests that the company may be effectively managing its assets and liabilities to generate sustainable returns for its shareholders.