United Airlines Holdings Inc (UAL)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.73	0.80	0.86	0.81	0.53

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $25,057,000K ÷ ($25,057,000K + $9,324,000K)
= 0.73

The debt-to-capital ratio of United Airlines Holdings Inc has shown a fluctuating trend over the past five years. The ratio decreased from 0.56 in 2019 to 0.82 in 2020 and further increased to 0.87 in 2021. However, in 2022, there was a slight decrease to 0.82. By the end of 2023, the ratio improved to 0.76.

This pattern indicates some variability in the company's capital structure and its reliance on debt financing over the years. A higher debt-to-capital ratio suggests a greater proportion of debt in the company's capital structure, potentially indicating increased financial leverage and risk. Conversely, a lower ratio may signify a more conservative approach to financing and reduced risk exposure.

Overall, the downward trend in the debt-to-capital ratio from 2021 to 2023 may indicate efforts by United Airlines Holdings Inc to reduce its debt levels relative to its capital, potentially leading to improved financial stability and resilience in the long term.