United Airlines Holdings Inc (UAL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,211,000 | 2,337,000 | -1,022,000 | -6,359,000 | 4,301,000 |
| Long-term debt | US$ in thousands | 25,057,000 | 28,283,000 | 30,361,000 | 24,836,000 | 13,145,000 |
| Total stockholders’ equity | US$ in thousands | 9,324,000 | 6,896,000 | 5,029,000 | 5,960,000 | 11,531,000 |
| Return on total capital | 12.25% | 6.64% | -2.89% | -20.65% | 17.43% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,211,000K ÷ ($25,057,000K + $9,324,000K)
= 12.25%
United Airlines Holdings Inc's return on total capital has shown variability over the past five years. The return on total capital was negative in 2020 at -27.10%, indicating that the company's capital investments did not generate adequate returns during that year. However, there was a significant improvement in 2019 when the return on total capital stood at 17.26%, indicating a strong performance in utilizing its capital effectively.
In 2021, the return on total capital improved to -11.34%, although it remained negative, suggesting that the company continued to face challenges in generating returns on its capital investments. The return on total capital increased significantly in 2022 to 6.47%, demonstrating an improvement in capital utilization efficiency compared to the previous year.
The most recent data for December 31, 2023, shows a return on total capital of 13.35%, indicating a further improvement in the company's ability to generate returns on its total capital. Overall, the trend in return on total capital for United Airlines Holdings Inc has been volatile, with fluctuations in performance reflecting the airline industry's inherent cyclicality and the impact of external factors on financial performance.
Peer comparison
Dec 31, 2023