United Airlines Holdings Inc (UAL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 74,083,000 | 71,104,000 | 67,358,000 | 68,175,000 | 59,548,000 |
| Total stockholders’ equity | US$ in thousands | 12,675,000 | 9,324,000 | 6,896,000 | 5,029,000 | 5,960,000 |
| Financial leverage ratio | 5.84 | 7.63 | 9.77 | 13.56 | 9.99 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $74,083,000K ÷ $12,675,000K
= 5.84
The financial leverage ratio of United Airlines Holdings Inc has demonstrated fluctuations over the past five years. As of December 31, 2020, the ratio stood at 9.99, indicating that the company had a high level of debt relative to its equity. However, by December 31, 2021, the ratio had increased to 13.56, suggesting a further increase in financial risk.
In the subsequent years, the financial leverage ratio showed a declining trend, reaching 9.77 by December 31, 2022, and dropping further to 7.63 by December 31, 2023. This downward trend indicates a reduction in the company's reliance on debt financing. Finally, as of December 31, 2024, the ratio decreased to 5.84, signaling a significant decrease in financial leverage and potentially improved financial stability.
Overall, the fluctuation in United Airlines Holdings Inc's financial leverage ratio over the analyzed period reflects changes in the company's capital structure and debt management strategies. It is important for investors and stakeholders to monitor such trends to assess the company's ability to meet its financial obligations and sustain long-term profitability.
Peer comparison
Dec 31, 2024