United Airlines Holdings Inc (UAL)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.84 | 6.35 | 6.96 | 7.83 | 7.63 | 8.26 | 9.52 | 10.56 | 9.77 | 14.08 | 17.76 | 19.05 | 13.56 | 12.76 | 14.49 | 11.84 | 9.99 | 8.74 | 6.45 | 5.63 |
Based on the solvency ratios provided for United Airlines Holdings Inc, it is evident that the company has consistently maintained a very low level of debt in comparison to its assets, capital, and equity, with a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all at 0.00% across all reported periods.
However, the financial leverage ratio has shown significant fluctuations over the years, starting at 5.63 in March 2020 and peaking at 19.05 in March 2022, indicating a substantial increase in financial leverage. This ratio measures the proportion of a company's total assets that are financed by its debt. The decline in the financial leverage ratio from March 2022 to December 2024 suggests that the company has been reducing its financial risk and reliance on debt financing.
Overall, the company's low debt levels in relation to its assets, capital, and equity indicate a strong solvency position, while the fluctuating financial leverage ratio highlights a past period of increased financial risk followed by a subsequent improvement in the company's leverage position.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.36 | 3.40 | 3.34 | 3.02 | 2.91 | 3.09 | 2.92 | 2.44 | 1.59 | 0.40 | 0.06 | -0.56 | -0.62 | -1.73 | -4.02 | -6.20 | -7.92 | -5.98 | -1.97 | 3.31 |
The interest coverage ratio of United Airlines Holdings Inc indicates the company's ability to meet its interest expenses with its operating income.
Based on the data provided, the interest coverage ratio fluctuated significantly over the observed period from negative figures on June 30, 2020, through September 30, 2021, to positive figures thereafter. The low or negative interest coverage ratios during this period suggest that the company might have had challenges generating enough operating income to cover its interest expenses, potentially indicating financial distress.
However, from June 30, 2022, onwards, the interest coverage ratio started to improve, indicating that United Airlines Holdings Inc's operating income was sufficient to cover its interest expenses. The trend of increasing interest coverage ratios from that point onwards is a positive indicator of the company's ability to manage its debt obligations effectively.
As of December 31, 2024, the interest coverage ratio stood at 3.36, showing that the company's operating income was around three times its interest expenses. This level of interest coverage suggests a healthy financial position, as United Airlines Holdings Inc has adequate earnings to cover its interest payments comfortably.
Overall, the improving trend in interest coverage ratios from negative levels to positive levels indicates a positive turnaround in the financial health and debt servicing capability of United Airlines Holdings Inc over the observed period.
See also:
United Airlines Holdings Inc Solvency Ratios (Quarterly Data)