United Airlines Holdings Inc (UAL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,570,000 | 5,161,000 | 2,663,000 | -980,000 | -7,830,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,675,000 | 9,324,000 | 6,896,000 | 5,029,000 | 5,960,000 |
| Return on total capital | 43.94% | 55.35% | 38.62% | -19.49% | -131.38% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,570,000K ÷ ($—K + $12,675,000K)
= 43.94%
United Airlines Holdings Inc's return on total capital has shown a significant improvement from -131.38% as of December 31, 2020, to 43.94% as of December 31, 2024. The negative returns in 2020 and 2021 indicate that the company was not effectively generating profits from its capital investments, potentially due to challenges faced during the pandemic. However, the positive returns in subsequent years reflect a turnaround in the company's profitability and capital productivity. The return on total capital of 55.35% as of December 31, 2023, marks a particularly strong performance, indicating that United Airlines was able to generate substantial profits relative to the total capital invested. This positive trend in return on total capital suggests that the company has been able to enhance its operational efficiency and financial performance, ultimately generating value for its investors.
Peer comparison
Dec 31, 2024