United Airlines Holdings Inc (UAL)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,570,000 | 5,161,000 | 2,663,000 | -980,000 | -7,830,000 |
| Interest expense | US$ in thousands | 1,402,000 | 1,774,000 | 1,673,000 | 1,577,000 | 992,000 |
| Interest coverage | 3.97 | 2.91 | 1.59 | -0.62 | -7.89 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,570,000K ÷ $1,402,000K
= 3.97
United Airlines Holdings Inc's interest coverage ratio has shown a substantial improvement over the years according to the available data. The ratio was negative in 2020 and 2021, indicating that the company's earnings were insufficient to cover its interest expenses during those years. However, there has been a positive trend since then, with interest coverage ratios of 1.59 in 2022, 2.91 in 2023, and 3.97 in 2024.
This improvement suggests that United Airlines Holdings Inc's ability to meet its interest payments has strengthened, indicating a healthier financial position. The company's earnings are now more comfortably able to cover its interest obligations, which may signal enhanced financial stability and potential for future growth. It will be important for the company to continue this positive trend to ensure sustainable financial health and minimize financial risk.
Peer comparison
Dec 31, 2024