United Parcel Service Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (as reported)	6,708)	11,548)	12,890)	1,343)	4,440)
Add: Change in unrealized gain (loss) on marketable securities, net of tax	9)	(10)	(7)	2)	6)
Net income (adjusted)	6,717)	11,538)	12,883)	1,345)	4,446)

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United Parcel Service Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	7.37%	11.51%	13.25%	1.59%	5.99%
Adjusted net profit margin	7.38%	11.50%	13.24%	1.59%	6.00%
Return on Equity (ROE)
Reported ROE	38.76%	58.36%	90.44%	204.41%	135.90%
Adjusted ROE	38.81%	58.31%	90.39%	204.72%	136.09%
Return on Assets (ROA)
Reported ROA	9.47%	16.24%	18.57%	2.15%	7.67%
Adjusted ROA	9.48%	16.22%	18.56%	2.16%	7.68%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	United Parcel Service Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	United Parcel Service Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	United Parcel Service Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,708)	11,548)	12,890)	1,343)	4,440)
Revenue	90,958)	100,338)	97,287)	84,628)	74,094)
Profitability Ratio
Net profit margin¹	7.37%	11.51%	13.25%	1.59%	5.99%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,717)	11,538)	12,883)	1,345)	4,446)
Revenue	90,958)	100,338)	97,287)	84,628)	74,094)
Profitability Ratio
Adjusted net profit margin²	7.38%	11.50%	13.24%	1.59%	6.00%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 6,708 ÷ 90,958 = 7.37%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 6,717 ÷ 90,958 = 7.38%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	United Parcel Service Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,708)	11,548)	12,890)	1,343)	4,440)
Equity for controlling interests	17,306)	19,786)	14,253)	657)	3,267)
Profitability Ratio
ROE¹	38.76%	58.36%	90.44%	204.41%	135.90%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,717)	11,538)	12,883)	1,345)	4,446)
Equity for controlling interests	17,306)	19,786)	14,253)	657)	3,267)
Profitability Ratio
Adjusted ROE²	38.81%	58.31%	90.39%	204.72%	136.09%

2023 Calculations

¹ ROE = 100 × Net income ÷ Equity for controlling interests
= 100 × 6,708 ÷ 17,306 = 38.76%

² Adjusted ROE = 100 × Adjusted net income ÷ Equity for controlling interests
= 100 × 6,717 ÷ 17,306 = 38.81%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	United Parcel Service Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,708)	11,548)	12,890)	1,343)	4,440)
Total assets	70,857)	71,124)	69,405)	62,408)	57,857)
Profitability Ratio
ROA¹	9.47%	16.24%	18.57%	2.15%	7.67%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,717)	11,538)	12,883)	1,345)	4,446)
Total assets	70,857)	71,124)	69,405)	62,408)	57,857)
Profitability Ratio
Adjusted ROA²	9.48%	16.22%	18.56%	2.16%	7.68%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 6,708 ÷ 70,857 = 9.47%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 6,717 ÷ 70,857 = 9.48%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	United Parcel Service Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

United Parcel Service Inc. (NYSE:UPS)

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