Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
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Profitability Ratios (Summary)
United Airlines Holdings Inc., profitability ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | ||||||
| Net profit margin | ||||||
| Return on Investment | ||||||
| Return on equity (ROE) | ||||||
| Return on assets (ROA) | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
- Operating Profit Margin
- The operating profit margin displayed a significant improvement over the observed period. Initially, it was deeply negative at -41.41% in 2020, reflecting substantial operating losses. This margin improved dramatically to -4.15% in 2021, then turned positive in 2022 at 5.2%, continuing upward to 7.84% in 2023 and reaching 8.93% in 2024. The trend indicates progressing operational efficiency and a recovery toward profitability.
- Net Profit Margin
- The net profit margin followed a similar recovering trajectory as the operating margin. Starting at a pronounced negative -46.04% in 2020, it improved to -7.97% in 2021. The margin turned positive in 2022 at 1.64%, and further increased to 4.87% in 2023 and 5.52% in 2024. This pattern suggests a strong turnaround in overall profitability after initial wide net losses.
- Return on Equity (ROE)
- Return on equity showed a considerable recovery from deeply negative values. It was -118.61% in 2020, improving to -39.05% in 2021. By 2022, ROE became positive at 10.69%, then increased substantially to 28.08% in 2023, followed by a slight decrease to 24.84% in 2024. The sharp increase indicates a strong rebound in generating shareholder value, although the slight decline in the last year suggests a moderation in growth momentum.
- Return on Assets (ROA)
- Return on assets also demonstrated a consistent improvement following the initial losses. It stood at -11.87% in 2020, improved to -2.88% in 2021, turned positive at 1.09% in 2022, then rose to 3.68% in 2023 and further to 4.25% in 2024. This progression reflects enhanced efficiency in asset utilization and improved profitability relative to total asset base.
Return on Sales
Return on Investment
Operating Profit Margin
United Airlines Holdings Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Operating revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Parcel Service Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Transportation | ||||||
| Operating Profit Margin, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Operating revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income demonstrated a significant improvement over the analyzed periods. Initially, there was a substantial operating loss of 6,359 million USD at the end of 2020. This loss decreased sharply to 1,022 million USD in 2021. By 2022, the company achieved positive operating income of 2,337 million USD, which continued to grow in 2023 and 2024, reaching 4,211 million USD and 5,096 million USD respectively. This indicates a strong recovery and increasing profitability over the five-year span.
- Operating Revenue
- Operating revenue showed a robust upward trend throughout the five years. Starting from 15,355 million USD in 2020, the revenue increased significantly to 24,634 million USD in 2021, nearly doubling to 44,955 million USD in 2022. The growth persisted into 2023 and 2024 with revenues of 53,717 million USD and 57,063 million USD respectively. This consistent growth signifies expanding business operations and possibly increased demand or improved capacity utilization.
- Operating Profit Margin
- The operating profit margin improved markedly from a negative margin of -41.41% in 2020, indicating considerable operating losses relative to revenue, to -4.15% in 2021. The margin turned positive in 2022, reaching 5.20%, and exhibited a continual rise in the following years, achieving 7.84% in 2023 and 8.93% in 2024. This positive trajectory reflects enhanced operational efficiency and better control over costs in relation to generated revenue.
Net Profit Margin
United Airlines Holdings Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | ||||||
| Operating revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Parcel Service Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Transportation | ||||||
| Net Profit Margin, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net profit margin = 100 × Net income (loss) ÷ Operating revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income experienced a significant improvement over the analyzed period. Beginning with a substantial loss of $7,069 million in 2020, the company reduced this loss dramatically to $1,964 million in 2021. In the subsequent years, profitability was achieved and increased, with net income rising to $737 million in 2022, further climbing to $2,618 million in 2023, and reaching $3,149 million by the end of 2024. This trend indicates a strong recovery and consistent growth in profitability.
- Operating Revenue
- Operating revenue showed consistent and pronounced growth from 2020 to 2024. Starting at $15,355 million in 2020, the revenue rose to $24,634 million in 2021, almost doubling to $44,955 million in 2022. This upward trajectory continued with revenues of $53,717 million in 2023 and $57,063 million in 2024. The steady increase reflects expanding business activity and sales.
- Net Profit Margin
- The net profit margin mirrored the trends observed in net income, showing a clear recovery. The margin was significantly negative at -46.04% in 2020, improving markedly to -7.97% in 2021. From 2022 onwards, the margin turned positive, reaching 1.64%, and then increased further to 4.87% in 2023 and 5.52% in 2024. This progression signals enhanced profitability efficiency relative to revenue generation.
Return on Equity (ROE)
United Airlines Holdings Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Parcel Service Inc. | ||||||
| ROE, Sector | ||||||
| Transportation | ||||||
| ROE, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income demonstrates a substantial recovery over the observed period. Initially, there is a significant loss of 7,069 million US dollars at the end of 2020, which decreases sharply to a loss of 1,964 million US dollars by the end of 2021. From 2022 onwards, the company experiences positive net income, increasing progressively from 737 million US dollars in 2022 to 3,149 million US dollars by the end of 2024. This trend indicates a strong turnaround in profitability.
- Stockholders’ Equity
- Stockholders’ equity shows a consistent upward trend throughout the period. Starting at 5,960 million US dollars at the end of 2020, equity slightly decreases to 5,029 million in 2021 but recovers and grows substantially thereafter, reaching 6,896 million in 2022. This positive momentum strengthens in subsequent years, with equity rising to 9,324 million in 2023 and 12,675 million by the end of 2024. The increase in equity suggests enhanced financial stability and accumulation of retained earnings.
- Return on Equity (ROE)
- ROE performance mirrors the net income trend, showing dramatic improvement over the period. The initial years, 2020 and 2021, reflect deeply negative returns at -118.61% and -39.05% respectively, indicating significant losses relative to equity. In 2022, the ROE reaches a positive 10.69%, indicating the transition to profitability. This improvement continues markedly in 2023 with a robust 28.08%, followed by a slight decline to 24.84% in 2024, which still reflects strong profitability and effective utilization of equity capital.
Return on Assets (ROA)
United Airlines Holdings Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Parcel Service Inc. | ||||||
| ROA, Sector | ||||||
| Transportation | ||||||
| ROA, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibits a significant improvement over the observed periods. Initially, there was a substantial loss of 7,069 million USD at the end of 2020, which decreased sharply to a loss of 1,964 million USD in 2021. From 2022 onwards, the company turned profitable, recording net incomes of 737 million USD, 2,618 million USD, and 3,149 million USD in 2022, 2023, and 2024 respectively. This trend indicates a strong recovery and progressive profitability over the five-year span.
- Total Assets
- Total assets show a gradual increase, rising from 59,548 million USD in 2020 to 74,083 million USD in 2024. Despite a slight dip in 2022 compared to 2021, the overall upward trajectory suggests continued asset growth, reflecting expansion or investment activities.
- Return on Assets (ROA)
- The ROA moved from negative values in 2020 and 2021 (-11.87% and -2.88% respectively) to positive figures starting in 2022 (1.09%), with an increasing trend reaching 4.25% in 2024. This improvement aligns with the transition from loss to profitability, indicating enhanced efficiency in generating earnings from the asset base.