United Airlines Holdings Inc (UAL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,885,000 | 5,148,000 | 5,466,000 | 5,198,000 | 5,161,000 | 5,537,000 | 5,188,000 | 4,207,000 | 2,663,000 | 647,000 | 100,000 | -917,000 | -980,000 | -2,604,000 | -5,641,000 | -7,305,000 | -7,854,000 | -4,781,000 | -1,260,000 | 2,088,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,675,000 | 11,437,000 | 10,526,000 | 9,188,000 | 9,324,000 | 8,853,000 | 7,705,000 | 6,668,000 | 6,896,000 | 4,898,000 | 3,964,000 | 3,624,000 | 5,029,000 | 5,431,000 | 4,904,000 | 5,206,000 | 5,960,000 | 7,003,000 | 8,517,000 | 9,418,000 |
| Return on total capital | 38.54% | 45.01% | 51.93% | 56.57% | 55.35% | 62.54% | 67.33% | 63.09% | 38.62% | 13.21% | 2.52% | -25.30% | -19.49% | -47.95% | -115.03% | -140.32% | -131.78% | -68.27% | -14.79% | 22.17% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,885,000K ÷ ($—K + $12,675,000K)
= 38.54%
The Return on Total Capital for United Airlines Holdings Inc has displayed a fluctuating trend over the past few years, indicating varying levels of efficiency in generating returns relative to its total capital employed.
Starting from March 31, 2020, the company achieved a return of 22.17%, suggesting a profitable period. However, this was followed by a significant decline in performance with negative returns in subsequent quarters, hitting a low of -140.32% by March 31, 2021. The negative returns persisted until June 30, 2022, when the company started to show signs of improvement, entering positive territory with a return of 2.52%.
The positive momentum continued to build up through the following quarters, with returns progressively increasing to reach a peak of 67.33% by June 30, 2023. Subsequently, the return dipped slightly but remained significantly above zero, indicating a more efficient utilization of total capital. As of December 31, 2024, the Return on Total Capital stood at 38.54%, reflecting a solid performance in generating returns relative to the capital invested.
Overall, the varying trends in Return on Total Capital for United Airlines Holdings Inc suggest a period of challenges followed by a recovery and improved efficiency in capital utilization, ultimately leading to a more favorable position by the end of the analyzed period.
Peer comparison
Dec 31, 2024