Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
United Airlines Holdings Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of long-term activity ratios reveals fluctuating performance across the observed period. Generally, asset utilization metrics improved from 2021 to 2023, followed by a stabilization or slight decline towards 2025. These shifts suggest evolving efficiency in how assets are employed to generate revenue.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a substantial increase from 0.77 in 2021 to 1.31 in 2022, indicating improved efficiency in generating revenue from fixed assets. This positive trend continued modestly to 1.35 in 2023 before stabilizing at 1.33 in 2024 and decreasing slightly to 1.28 in 2025. The overall trend suggests a generally more effective use of fixed assets, though the recent leveling off warrants monitoring.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When considering operating leases and right-of-use assets, the net fixed asset turnover ratio follows a similar pattern to the standard calculation. It rose from 0.67 in 2021 to 1.17 in 2022, then to 1.23 in 2023. A slight decrease to 1.22 in 2024 and further to 1.16 in 2025 is observed. This indicates that including lease obligations provides a more comprehensive view of asset utilization, and the recent decline mirrors the trend observed in the standard net fixed asset turnover.
- Total Asset Turnover
- The total asset turnover ratio exhibits a clear upward trend from 0.36 in 2021 to 0.77 in 2023 and 2024, signifying a growing ability to generate sales from all assets. The ratio remained constant at 0.77 in 2024 and 2025, suggesting a plateau in overall asset efficiency. This stabilization could be due to increased investment in assets without a corresponding increase in revenue.
- Equity Turnover
- The equity turnover ratio, which measures revenue generated per dollar of equity, peaked at 6.52 in 2022 after starting at 4.90 in 2021. A subsequent decline to 5.76 in 2023, 4.50 in 2024, and 3.87 in 2025 is apparent. This downward trend suggests a decreasing ability to generate revenue relative to the amount of equity invested, potentially indicating diminishing returns on equity or increased equity levels without proportional revenue growth.
In summary, the observed ratios indicate an initial period of improved asset utilization followed by a stabilization or slight decline in more recent years. The equity turnover ratio’s consistent decrease is a notable trend that may warrant further investigation.
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Net Fixed Asset Turnover
United Airlines Holdings Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | 59,070) | 57,063) | 53,717) | 44,955) | 24,634) | |
| Operating property and equipment, net | 46,121) | 42,908) | 39,815) | 34,448) | 32,074) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 1.28 | 1.33 | 1.35 | 1.31 | 0.77 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| FedEx Corp. | 2.11 | 2.11 | 2.22 | 2.45 | 2.35 | |
| Uber Technologies Inc. | 27.42 | 22.53 | 17.98 | 15.31 | 9.42 | |
| Union Pacific Corp. | 0.41 | 0.42 | 0.42 | 0.44 | 0.40 | |
| United Parcel Service Inc. | 2.35 | 2.45 | 2.46 | 2.89 | 2.91 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Transportation | 1.67 | 1.67 | 1.67 | 1.79 | 1.55 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 2.84 | 2.76 | 2.86 | 2.94 | 2.72 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Operating revenue ÷ Operating property and equipment, net
= 59,070 ÷ 46,121 = 1.28
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a generally positive trend over the observed period, followed by a slight decline in the most recent year. Operating revenue experienced substantial growth, while operating property and equipment, net, also increased, though at a slower pace. This interplay significantly influences the observed ratio values.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 0.77 in 2021 to 1.31 in 2022, indicating a more efficient utilization of fixed assets to generate revenue. This improvement likely reflects the recovery of operations following prior disruptions and increased demand for air travel. Further improvement was seen in 2023, with the ratio reaching 1.35, suggesting continued efficiency gains.
- In 2024, the ratio experienced a slight decrease to 1.33. While still representing a strong level of asset utilization, this suggests a moderation in the rate of efficiency improvement. The most recent year, 2025, shows a further decrease to 1.28. This decline warrants further investigation to determine if it is attributable to temporary factors or a developing trend. It could indicate that asset investment is outpacing revenue growth, or that assets are becoming less efficiently utilized.
Operating revenue increased significantly from US$24,634 million in 2021 to US$59,070 million in 2025, representing substantial growth over the period. Operating property and equipment, net, also increased, moving from US$32,074 million in 2021 to US$46,121 million in 2025. However, the growth in revenue outpaced the growth in fixed assets through 2023, contributing to the initial increase in the net fixed asset turnover ratio. The more comparable growth rates in 2024 and 2025 likely explain the stabilization and subsequent slight decline in the ratio.
Overall, the trend suggests a period of improving asset utilization followed by a recent stabilization and minor decrease. Continued monitoring of this ratio, alongside other performance indicators, is recommended to assess the sustainability of asset efficiency.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
United Airlines Holdings Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | 59,070) | 57,063) | 53,717) | 44,955) | 24,634) | |
| Operating property and equipment, net | 46,121) | 42,908) | 39,815) | 34,448) | 32,074) | |
| Operating lease right-of-use assets | 4,958) | 3,815) | 3,914) | 3,889) | 4,645) | |
| Operating property and equipment, net (including operating lease, right-of-use asset) | 51,079) | 46,723) | 43,729) | 38,337) | 36,719) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.16 | 1.22 | 1.23 | 1.17 | 0.67 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| FedEx Corp. | 1.51 | 1.50 | 1.55 | 1.71 | 1.64 | |
| Uber Technologies Inc. | 17.28 | 14.14 | 11.25 | 9.03 | 5.39 | |
| Union Pacific Corp. | 0.40 | 0.41 | 0.41 | 0.43 | 0.38 | |
| United Parcel Service Inc. | 2.11 | 2.20 | 2.20 | 2.61 | 2.63 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Transportation | 1.45 | 1.45 | 1.44 | 1.53 | 1.33 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.49 | 2.41 | 2.49 | 2.54 | 2.34 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenue ÷ Operating property and equipment, net (including operating lease, right-of-use asset)
= 59,070 ÷ 51,079 = 1.16
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using operating property and equipment inclusive of operating leases and right-of-use assets, demonstrates a notable upward trend followed by a slight decline. Operating revenue experienced substantial growth over the observed period, while the value of operating property and equipment also increased, though at a comparatively slower rate.
- Operating Revenue
- Operating revenue increased significantly from US$24,634 million in 2021 to US$44,955 million in 2022. This growth continued, albeit at a decreasing rate, reaching US$53,717 million in 2023, US$57,063 million in 2024, and US$59,070 million in 2025. The largest absolute increase occurred between 2021 and 2022.
- Operating Property and Equipment (Net, Including Operating Lease & ROU Asset)
- The net value of operating property and equipment, including operating leases and right-of-use assets, rose from US$36,719 million in 2021 to US$38,337 million in 2022. Further increases were observed in subsequent years, reaching US$43,729 million in 2023, US$46,723 million in 2024, and US$51,079 million in 2025. The rate of increase in this asset base was consistently lower than the growth rate of operating revenue.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio began at 0.67 in 2021. A substantial increase was recorded in 2022, reaching 1.17. This upward trend continued into 2023, with the ratio reaching 1.23. In 2024, the ratio experienced a slight decrease to 1.22, and a further, though smaller, decrease to 1.16 was observed in 2025. The ratio suggests increasing efficiency in revenue generation relative to the fixed asset base between 2021 and 2023, followed by a stabilization and minor decline in the most recent two years.
The observed pattern suggests that the company initially improved its ability to generate revenue from its fixed assets. However, the recent stabilization and slight decline in the net fixed asset turnover ratio, despite continued revenue growth, may warrant further investigation to determine if asset utilization is beginning to plateau or if the rate of asset investment is outpacing revenue gains.
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Total Asset Turnover
United Airlines Holdings Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | 59,070) | 57,063) | 53,717) | 44,955) | 24,634) | |
| Total assets | 76,448) | 74,083) | 71,104) | 67,358) | 68,175) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.77 | 0.77 | 0.76 | 0.67 | 0.36 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| FedEx Corp. | 1.00 | 1.01 | 1.03 | 1.09 | 1.01 | |
| Uber Technologies Inc. | 0.84 | 0.86 | 0.96 | 0.99 | 0.45 | |
| Union Pacific Corp. | 0.35 | 0.36 | 0.36 | 0.38 | 0.34 | |
| United Parcel Service Inc. | 1.21 | 1.30 | 1.28 | 1.41 | 1.40 | |
| Total Asset Turnover, Sector | ||||||
| Transportation | 0.85 | 0.87 | 0.88 | 0.92 | 0.76 | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.66 | 0.65 | 0.67 | 0.66 | 0.58 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Operating revenue ÷ Total assets
= 59,070 ÷ 76,448 = 0.77
2 Click competitor name to see calculations.
The total asset turnover ratio demonstrates a clear upward trend over the observed five-year period. Initially, the ratio was relatively low, but it increased significantly and then stabilized. This suggests improving efficiency in asset utilization.
- Total Asset Turnover Trend
- In 2021, the total asset turnover ratio was 0.36. This indicates that for every dollar of assets, the company generated 36 cents in revenue. A substantial increase was observed in 2022, with the ratio rising to 0.67. This represents a significant improvement in the company’s ability to generate sales from its asset base.
- The upward trend continued into 2023, with the ratio reaching 0.76. This suggests continued gains in operational efficiency. The rate of increase slowed in 2024, with the ratio reaching 0.77. The ratio remained stable at 0.77 in 2025, indicating that the company has reached a plateau in terms of asset utilization efficiency, at least based on these figures.
The consistent increase in operating revenue, coupled with relatively stable total assets, primarily drives the observed trend. The stabilization of the ratio in the final two years suggests that further significant improvements in asset turnover may be challenging to achieve without substantial changes to asset levels or revenue generation strategies.
- Revenue and Asset Relationship
- Operating revenue increased from US$24,634 million in 2021 to US$59,070 million in 2025. Total assets experienced a more moderate increase, moving from US$68,175 million in 2021 to US$76,448 million in 2025. The greater proportional increase in revenue compared to assets is the primary driver of the improved total asset turnover ratio.
The company’s ability to maintain a high asset turnover ratio is a positive indicator of its operational effectiveness. Continued monitoring of this ratio, alongside other financial metrics, is recommended to assess the sustainability of this performance.
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Equity Turnover
United Airlines Holdings Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | 59,070) | 57,063) | 53,717) | 44,955) | 24,634) | |
| Stockholders’ equity | 15,282) | 12,675) | 9,324) | 6,896) | 5,029) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 3.87 | 4.50 | 5.76 | 6.52 | 4.90 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| FedEx Corp. | 3.13 | 3.18 | 3.46 | 3.75 | 3.47 | |
| Uber Technologies Inc. | 1.92 | 2.04 | 3.31 | 4.34 | 1.21 | |
| Union Pacific Corp. | 1.33 | 1.44 | 1.63 | 2.05 | 1.54 | |
| United Parcel Service Inc. | 5.46 | 5.45 | 5.26 | 5.07 | 6.83 | |
| Equity Turnover, Sector | ||||||
| Transportation | 2.97 | 3.19 | 3.76 | 4.16 | 3.40 | |
| Equity Turnover, Industry | ||||||
| Industrials | 2.88 | 2.92 | 3.33 | 3.06 | 2.63 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Operating revenue ÷ Stockholders’ equity
= 59,070 ÷ 15,282 = 3.87
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates a fluctuating pattern over the five-year period. Initially, the ratio increased significantly before declining over the subsequent years.
- Overall Trend
- The equity turnover ratio began at 4.90 in 2021 and rose to a peak of 6.52 in 2022. Following this increase, a consistent downward trend was observed, decreasing to 5.76 in 2023, 4.50 in 2024, and further to 3.87 in 2025.
- Year-over-Year Changes
- The largest year-over-year increase occurred between 2021 and 2022, with a rise of 1.62. Conversely, the most substantial decrease was between 2024 and 2025, with a decline of 0.63. The change from 2022 to 2023 was a decrease of 0.76, and from 2023 to 2024 a decrease of 1.26.
- Relationship to Revenue and Equity
- The initial increase in the equity turnover ratio coincided with a substantial increase in operating revenue between 2021 and 2022. Stockholders’ equity also increased during this period, but at a slower rate than revenue. The subsequent decline in the equity turnover ratio occurred despite continued growth in both operating revenue and stockholders’ equity, suggesting that equity is growing at a faster rate than revenue generation.
The decreasing equity turnover ratio from 2022 to 2025 indicates that the company is generating less revenue for each dollar of stockholders’ equity. This could be due to increased investment in assets or a slower rate of revenue growth relative to equity expansion.
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