United Airlines Holdings Inc (UAL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.84 | 7.63 | 9.77 | 13.56 | 9.99 |
United Airlines Holdings Inc has consistently shown a low level of leverage and strong solvency position over the years, as indicated by the debt-to-assets, debt-to-capital, and debt-to-equity ratios all being consistently at 0.00 from 2020 to 2024. This suggests that the company has a minimal amount of debt relative to its assets, capital, and equity.
Moreover, the financial leverage ratio has decreased steadily from 13.56 in 2021 to 5.84 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments over the years, leading to a lower financial risk.
Overall, the solvency ratios of United Airlines Holdings Inc reflect a solid financial position and a prudent approach to managing its debt levels, which may enhance its ability to weather economic downturns and maintain stability in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.97 | 2.91 | 1.59 | -0.62 | -7.89 |
Based on the data provided, the interest coverage ratio for United Airlines Holdings Inc has shown a fluctuating trend over the past five years.
As of December 31, 2020, the interest coverage ratio was -7.89, indicating that the company's operating income was insufficient to cover its interest expenses. This suggests a high level of financial risk and potential difficulties in meeting interest obligations.
By December 31, 2021, the interest coverage ratio improved to -0.62, but still remained negative, indicating ongoing challenges in generating enough operating income to cover interest expenses.
However, there was a significant improvement in the company's financial performance by December 31, 2022, with the interest coverage ratio reaching 1.59. This suggests that the company's operating income was able to cover its interest expenses, although with a slim margin.
The trend continued to improve over the following years, with the interest coverage ratio reaching 2.91 by December 31, 2023, and further increasing to 3.97 by December 31, 2024. These values indicate that the company's ability to cover its interest expenses has strengthened over time, signaling a more favorable financial position.
Overall, the data reflects a challenging period for United Airlines Holdings Inc initially, with a notable improvement in its interest coverage ratio in the later years. It is essential for the company to maintain this positive trend to ensure its long-term financial stability and ability to meet its debt obligations.