United Airlines Holdings Inc (UAL)

Debt-to-equity 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-equity ratio		2.69	2.93	3.47	4.12	4.10	5.82	7.36	8.19	6.04	5.80	6.59	4.97	4.17	3.18	1.68	1.40	1.14	1.14	1.25	1.30

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $25,057,000K ÷ $9,324,000K
= 2.69

The debt-to-equity ratio of United Airlines Holdings Inc has been fluctuating over the past eight quarters. It ranged from 3.15 in Q4 2023 to 9.09 in Q1 2022.

It is evident that the company has been utilizing more debt in its capital structure compared to equity, as indicated by the consistently high debt-to-equity ratios. This suggests that United Airlines has been relying significantly on debt financing to fund its operations and growth initiatives.

The trend of increasing debt-to-equity ratios from Q1 2022 to Q3 2022 may indicate a potential risk for the company, as higher levels of debt relative to equity can lead to increased financial leverage and financial risk. However, the decreasing trend from Q3 2022 to Q4 2023 may suggest that the company is actively managing its debt levels and possibly reducing its reliance on debt financing.

Overall, a high debt-to-equity ratio signifies that United Airlines Holdings Inc has a higher debt burden compared to its equity, which could potentially impact its financial stability and flexibility in the long run. Monitoring this ratio going forward will be crucial to assess the company's financial health and risk profile.