United Airlines Holdings Inc (UAL)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,618,000 | 737,000 | -1,964,000 | -7,069,000 | 3,009,000 |
| Total stockholders’ equity | US$ in thousands | 9,324,000 | 6,896,000 | 5,029,000 | 5,960,000 | 11,531,000 |
| ROE | 28.08% | 10.69% | -39.05% | -118.61% | 26.09% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,618,000K ÷ $9,324,000K
= 28.08%
United Airlines Holdings Inc's return on equity (ROE) has displayed significant fluctuation over the past five years. In December 2019, the company achieved an ROE of 26.09%, indicating a healthy profitability level. However, in December 2020, the ROE plummeted to -118.61%, reflecting a substantial loss compared to shareholders' equity.
The negative ROE in December 2020 and further deterioration in December 2021 with an ROE of -39.05% suggest concerns regarding the company's ability to effectively utilize equity to generate profits. It is important to note that negative ROE can result from a net loss exceeding the average shareholder equity during a period.
The significant improvement in ROE to 10.69% in December 2022 indicates a partial recovery in the company's profitability, although it still falls short of the levels seen in previous years. The most recent data point in December 2023 shows a notable increase in ROE to 28.08%, signaling a return to a more favorable profitability level.
Overall, the fluctuating trend in United Airlines Holdings Inc's ROE highlights the company's volatility in generating returns for shareholders and underscores the importance of closely monitoring its financial performance and efficiency in managing equity.
Peer comparison
Dec 31, 2023