United Airlines Holdings Inc. (NASDAQ:UAL)

Debt to equity

The debt to equity ratio initially rose sharply from 1.88 at the end of Q1 2020 to a peak of 9.55 in Q1 2022, indicating increasing leverage. Subsequently, the ratio declined steadily, reaching 2.19 by Q1 2025, reflecting a significant deleveraging trend over the later periods.

Debt to equity (including operating lease liability)

This metric follows a similar pattern to the standard debt to equity ratio but at higher levels, peaking at 11.12 in Q1 2022. The ratio then decreased consistently to 2.61 in Q1 2025, showing that when accounting for operating leases, the company still reduced leverage considerably.

Debt to capital

The debt to capital ratio showed an upward trajectory from 0.65 in Q1 2020 to a maximum of 0.91 in Q1 2022, indicating greater reliance on debt financing relative to total capital. After that, a gradual decrease to 0.69 by Q1 2025 suggests improved capital structure with reduced debt proportions.

Debt to capital (including operating lease liability)

This ratio exhibits a consistent increase from 0.71 in Q1 2020 reaching 0.92 in Q1 2022, followed by a steady decline to 0.72 in Q1 2025. The pattern reflects a peak in debt proportion inclusive of lease liabilities, then an effective reduction.

Debt to assets

Debt to assets ratio increased from 0.33 at Q1 2020 to roughly 0.52 by Q4 2021, then displayed a declining trend to 0.36 by Q1 2025. This indicates the company increased its assets financed by debt during 2020–2021 and later improved its asset financing balance by reducing debt influence.

Debt to assets (including operating lease liability)

Including operating leases, the ratio rose from 0.44 to a peak of 0.60 in late 2021, then decreased incrementally to 0.43 by Q1 2025, demonstrating a similar trend with a reduction in total liabilities financing assets after the peak period.

Financial leverage

The financial leverage ratio increased significantly from 5.63 in early 2020 to a high of 19.05 in Q1 2022, indicating increased asset financing through debt and possibly higher risk exposure. From that peak, it fell sharply to 6.03 in Q1 2025, signaling a return to a more conservative and less leveraged capital structure.

Interest coverage

Interest coverage data are missing for the early quarters of 2020. The available data from Q4 2020 show negative ratios, worsening up to Q2 2021, indicating the company was unable to cover interest expenses from operating earnings during this period. Starting in Q3 2021, interest coverage improved steadily, turning positive and increasing from 0.06 to 4.65 by Q1 2025, suggesting enhanced earnings ability to service interest obligations and improving financial health.

The financial data reveal distinct trends in the company's debt levels, equity, and leverage ratios over the analyzed quarterly periods.

Total Debt

The total debt exhibited an initial increase from approximately $17.7 billion in March 2020, peaking around $36.3 billion in June 2021. Thereafter, a gradual decline is observed, with debt levels decreasing steadily to about $27.7 billion by March 2025. This suggests an active effort toward debt reduction following a period of significant borrowing.

Stockholders’ Equity

Stockholders' equity decreased notably from roughly $9.4 billion in March 2020 to a low near $3.6 billion by March 2022. This was followed by a continuous recovery and growth phase, reaching approximately $12.6 billion by March 2025. The rebound in equity indicates an improvement in the company’s net asset position over time after an initial weakening phase.

Debt to Equity Ratio

The debt to equity ratio increased sharply during the initial period, from 1.88 in March 2020 to a high of around 9.55 by March 2022, reflecting a significant rise in leverage driven by increased debt and reduced equity. Following this peak, the ratio shows a consistent decline to 2.19 by March 2025, highlighting a reduction in financial leverage and a strengthening equity base relative to debt.

Overall, the data illustrate a phase of financial stress in the early period marked by increased borrowing and equity erosion, followed by a strategic deleveraging and capital restoration process through later quarters. These trends demonstrate improving financial stability and a more balanced capital structure as time progresses.

The financial data reveals notable trends in the company's capital structure over the periods analyzed. Total debt, inclusive of operating lease liabilities, initially increased from $23.4 billion in the first quarter of 2020 to peak levels around 2020 and early 2021, reaching above $41 billion in mid to late 2021. From late 2021 onward, total debt exhibited a gradual declining trend, decreasing to approximately $32.9 billion by the first quarter of 2025.

In contrast, stockholders' equity displayed a declining trend in the early periods, dropping from $9.4 billion in the first quarter of 2020 to a low near $3.6 billion by the first quarter of 2022. Following this trough, equity began recovering steadily, increasing to above $12.6 billion by the start of 2025. This recovery suggests a strengthening of the equity base after a period of contraction.

The debt to equity ratio, which reflects the leverage position of the company, intensified significantly from 2.49 in the first quarter of 2020 to a peak of 11.12 in the first quarter of 2022. This increase indicates a marked rise in debt relative to equity during this timeframe, potentially reflecting higher leverage risk. Subsequently, the ratio declined consistently, returning to levels around 2.6 by early 2025, which aligns with the observed reductions in total debt and the recovery of equity.

Overall, the data suggests that the company underwent a phase of increased leverage and reduced equity through 2020 and early 2022, likely as a response to external pressures or strategic financial decisions. Following this period, there was a clear deleveraging process accompanied by equity strengthening, indicating improved financial stability and a more balanced capital structure by the end of the analyzed timeline.

Total Debt

The total debt shows a significant increase from March 31, 2020, reaching a peak around mid-2021. From March 2020 at approximately 17.7 billion US dollars, debt rose steadily to around 36.3 billion US dollars by June 30, 2021. Following this peak, a gradual decline is observed, with total debt decreasing to approximately 27.7 billion US dollars by March 31, 2025. This trend indicates that the company initially incurred additional debt, possibly to weather financial challenges, and later focused on deleveraging over the subsequent periods.

Total Capital

Total capital exhibits a general upward trend from roughly 27.1 billion US dollars in March 2020, increasing to a peak of about 41.3 billion US dollars by March 31, 2025. Although there is some fluctuation in capital levels, especially between 2021 and early 2023, the overall trend suggests steady capital growth, reflecting either equity injections, retained earnings, or other sources of financing complementing the company’s capital base.

Debt to Capital Ratio

The debt to capital ratio displays a rising pattern from 0.65 in March 2020 to a high of 0.91 at March 31, 2022. This increase indicates a growing reliance on debt financing relative to the total capital during this period. Following the peak, the ratio declines consistently to 0.69 by March 31, 2025, signifying improved capital structure management and reduced financial leverage. The reduction in this ratio over the latter periods aligns with the earlier noted decrease in total debt and the simultaneous increase in total capital.

Total debt (including operating lease liability)

The total debt displayed an increasing trend from March 31, 2020, reaching a peak around June 30, 2020, and September 30, 2020. Post this peak, the debt level remained relatively high but started to decline gradually from the first quarter of 2022 through the latest period ending March 31, 2025. Overall, there is a noticeable reduction in total debt by the end of the timeframe, indicating a possible strategic effort to deleverage or manage liabilities more efficiently.

Total capital (including operating lease liability)

Total capital increased steadily from March 31, 2020, reaching a maximum in the vicinity of the fourth quarter of 2024. While there are some minor fluctuations, the trend suggests a gradual accumulation of capital over the observed periods. Capital levels remain consistently above the initial levels, indicating strengthening or expansion of the company's capital base throughout the timeframe.

Debt to capital (including operating lease liability) ratio

The debt to capital ratio rose significantly during the early quarters of 2020 and peaked around late 2020 and early 2021, corresponding with the peak in total debt. From that peak, the ratio demonstrated a consistent downward trajectory, decreasing steadily through to the first quarter of 2025. This decline suggests a proportional reduction of debt relative to the total capital, indicating improved financial leverage and possibly enhanced creditworthiness or risk profile.

Total Debt

The total debt showed a substantial increase from March 31, 2020, to December 31, 2020, rising from approximately $17.7 billion to nearly $28.3 billion. This upward trend continued into mid-2021, peaking around $36.3 billion in June 2021. Following this peak, there was a gradual decline in total debt, decreasing to about $27.7 billion by March 31, 2025. This suggests a strategic effort to reduce leverage after a period of increased borrowing.

Total Assets

Total assets increased steadily over the entire period, from approximately $53.1 billion at the end of Q1 2020 to about $76.1 billion by the end of Q1 2025. There were fluctuations within this rise, particularly slight decreases in late 2020 and late 2022, but the overall trajectory was positive. This steady growth indicates ongoing asset accumulation or appreciation.

Debt to Assets Ratio

The debt to assets ratio experienced an upward trend from 0.33 in March 2020 to a peak of 0.52 in December 2020, reflecting increased debt levels relative to assets during that period. Subsequent to this peak, the ratio gradually decreased, dropping to 0.36 by March 2025. This declining trend points to improved balance sheet strength, with debt levels reducing at a faster rate relative to asset growth.

Summary of Trends

The data illustrates a period of heightened financial leverage beginning in early 2020, likely associated with external economic pressures. Total debt surged significantly during this period, reaching its highest level in mid-2021. Concurrently, total assets expanded steadily without major disruptions. Post mid-2021, the company appears to have focused on deleveraging, as evidenced by the gradual reduction in total debt and the lowering debt to assets ratio through to early 2025. The consistent asset growth alongside debt reduction suggests strengthened financial stability and a more conservative capital structure in the extended term.

The data reveals several key trends regarding the company's financial leverage and asset base over the given periods.

Total Debt (Including Operating Lease Liability)

The total debt initially increased from approximately 23.4 billion US dollars at the end of Q1 2020 to a peak around 41.7 billion in Q2 2021. Thereafter, there has been a generally declining trend, with total debt decreasing steadily to approximately 32.9 billion by Q1 2025. This indicates the company has been actively reducing its debt load following a period of accumulation during 2020 and the first half of 2021.

Total Assets

Total assets grew from approximately 53.1 billion at the end of Q1 2020 to a peak near 73.3 billion by Q1 2025, with some fluctuations. The asset base expanded significantly with notable growth during 2021 and 2023. Despite occasional minor declines, the overall trajectory of asset growth is upward, reflecting ongoing investments or asset appreciation during the period.

Debt to Assets Ratio (Including Operating Lease Liability)

The leverage ratio starts at 0.44 at Q1 2020 and rises sharply to a peak near 0.60 during late 2020 and early 2021, indicating increased debt relative to assets in that timeframe. Following this peak, the ratio shows a downward trend, falling steadily to around 0.43 by Q1 2025. This decline suggests an improvement in the company's financial leverage, with debt growing more slowly than assets or being actively reduced.

In summary, the company experienced a phase of increased leverage and debt accumulation during 2020 and early 2021. Since then, there is a clear pattern of debt reduction and asset growth, leading to a progressive improvement in its debt-to-asset ratio. This trend points towards strengthening financial stability and a more conservative capital structure as the company manages its obligations and expands its asset base.

Total Assets

The total assets demonstrate a generally upward trend over the examined periods. Beginning at approximately $53.1 billion in March 2020, total assets increased steadily, peaking around $73.3 billion by December 2024, and reaching $76.1 billion by March 2025. Despite minor fluctuations, such as slight declines in late 2021 and late 2023, the overall trajectory indicates a consistent expansion in asset base over the five-year span.

Stockholders’ Equity

Stockholders' equity exhibits a declining trend in the early periods, dropping from $9.4 billion in March 2020 to a low of $3.6 billion by March 2022. Following this trough, equity shows a marked recovery and steady growth, rising continuously to a level of approximately $12.6 billion by March 2025. This recovery phase reflects an improvement in the company’s net worth, especially from mid-2022 onwards.

Financial Leverage Ratio

The financial leverage ratio experienced significant volatility. It initially increased sharply from 5.63 in March 2020 to a peak of 19.05 by March 2022, indicating a substantial increase in debt relative to equity during this period. However, from March 2022 forward, financial leverage steadily declined, falling below 7.0 by the end of 2024 and stabilizing around 6.0 in early 2025. This decline suggests a reduction in reliance on debt financing and strengthening of the equity base in more recent periods.

Summary Insights

The data reveals a company that faced pressure on equity and elevated leverage ratios during the early part of the analyzed timeframe, coinciding with an expanding asset base possibly driven by increased liabilities. The subsequent recovery in equity alongside a declining leverage ratio indicates improved financial stability and enhanced capitalization. The growth in total assets alongside strengthening equity suggests a balanced approach to asset management and financing in the latter periods.

Earnings before interest and tax (EBIT)

Earnings before interest and tax (EBIT) showed significant volatility over the presented periods. Initially, there were substantial negative values from March 31, 2020 (-1964 million USD) through December 31, 2020 (-2039 million USD), reflecting considerable operating losses in that timeframe. Starting from March 31, 2021, there was a gradual improvement, moving closer to breakeven, with EBIT turning positive in September 30, 2021 (1034 million USD). However, fluctuations continued with a dip back into negative territory by December 31, 2021 (-439 million USD) and significantly negative again in March 31, 2022 (-1352 million USD). Subsequently, the company experienced a recovery trend through 2022 into early 2023, indicated by positive EBITs ranging from 857 to 1930 million USD. The figures then displayed oscillations, with a notable drop to 192 million USD at March 31, 2023, followed by a rebound to 2106 million USD on June 30, 2024. The trend toward improved and sustained positive EBIT figures suggests enhanced operational performance, despite intermittent volatility in some quarters.

Interest expense, net of interest capitalized

Interest expense, net of interest capitalized, remained relatively stable, ranging between approximately 150 million USD and 451 million USD. Higher levels were observed particularly from June 30, 2020 (179 million USD) through December 31, 2023 (445 million USD), with a slight declining trend afterward, reaching 308 million USD by March 31, 2025. The relatively consistent interest expense indicates stable debt servicing costs, with marginal decreases in the latter periods potentially reflecting debt reduction or refinancing to lower interest rates.

Interest coverage ratio

The interest coverage ratio displayed a marked improvement over the timeframe. Early data points (up to March 31, 2020) are not provided; however, starting from December 31, 2020, the ratio was deeply negative (-7.89), implying insufficient EBIT to cover interest expenses. This negative trend persisted, though improved gradually, moving through -1.71 and -0.62, eventually turning positive by September 30, 2021 (0.06). From that point onward, the ratio consistently increased, reaching as high as 4.65 by March 31, 2025. This upward trajectory indicates an enhanced ability of the company to meet interest obligations from its operating earnings, reflecting a strengthening financial position and recovery in operational profitability.