United Airlines Holdings Inc (UAL)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	25,057,000	25,932,000	26,713,000	27,460,000	28,283,000	28,490,000	29,175,000	29,665,000	30,361,000	31,520,000	32,303,000	25,849,000	24,836,000	22,297,000	14,318,000	13,198,000	13,145,000	12,900,000	12,938,000	12,734,000
Total stockholders’ equity	US$ in thousands	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	11,531,000	11,301,000	10,320,000	9,802,000
Debt-to-capital ratio		0.73	0.75	0.78	0.80	0.80	0.85	0.88	0.89	0.86	0.85	0.87	0.83	0.81	0.76	0.63	0.58	0.53	0.53	0.56	0.57

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 fluctuated over the past eight quarters. The ratio indicates the proportion of the company's capital that is funded by debt. In Q1 2022, the ratio was at its highest at 0.90, suggesting that 90% of the company's capital was financed by debt. This high level of debt relative to capital could pose a higher risk for the company in terms of financial stability and ability to meet obligations.

From Q1 2022 to Q2 2023, the ratio generally decreased, which could reflect efforts by United Airlines Holdings Inc to reduce its reliance on debt financing or improve its overall financial health. However, it is worth mentioning that even with the fluctuations, the ratio remained relatively high throughout the period, with values above 0.75 in every quarter.

A debt-to-capital ratio above 0.50 typically indicates a significant reliance on debt financing. Investors and creditors may view a high ratio unfavorably as it suggests a higher financial risk for the company. United Airlines Holdings Inc should continue to monitor and manage its debt levels to ensure long-term financial sustainability and mitigate potential risks associated with high levels of debt.