United Parcel Service Inc., balance sheet: debt

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current maturities of long-term debt, commercial paper and finance leases	3,348)	2,341)	2,131)	2,623)	3,420)
Long-term debt and finance leases, excluding current maturities	18,916)	17,321)	19,784)	22,031)	21,818)
Total long-term debt, including current maturities (carrying amount)	22,264)	19,662)	21,915)	24,654)	25,238)

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Debt item	Description	The company
Total long-term debt, including current maturities (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	United Parcel Service Inc. total debt decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023
Selected Financial Data (US$ in millions)
Total long-term debt, including current maturities (fair value)	22,100)
Financial Ratio
Debt, fair value to carrying amount ratio	0.99

Weighted-average interest rate on debt: 4.09%

Interest rate	Debt amount¹	Interest rate × Debt amount
5.45%	2,172)	118)
2.80%	499)	14)
2.20%	400)	9)
3.90%	999)	39)
2.40%	499)	12)
3.05%	996)	30)
3.40%	747)	25)
2.50%	398)	10)
4.45%	745)	33)
4.88%	894)	44)
6.20%	1,485)	92)
5.20%	494)	26)
4.88%	491)	24)
3.63%	369)	13)
3.40%	492)	17)
3.75%	1,138)	43)
4.25%	743)	32)
3.40%	689)	23)
5.30%	1,232)	65)
5.05%	1,083)	55)
7.62%	280)	21)
5.50%	84)	5)
5.13%	550)	28)
1.63%	774)	13)
1.00%	551)	6)
1.50%	551)	8)
2.13%	566)	12)
3.88%	472)	18)
Total	20,393)	835)
4.09%

¹ US$ in millions

² Weighted-average interest rate = 100 × 835 ÷ 20,393 = 4.09%

United Parcel Service Inc., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest expense	785)	704)	694)	701)	653)
Capitalized interest	118)	60)	58)	87)	91)
Interest costs incurred	903)	764)	752)	788)	744)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	United Parcel Service Inc. interest expense increased from 2021 to 2022 and from 2022 to 2023.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	United Parcel Service Inc. capitalized interest increased from 2021 to 2022 and from 2022 to 2023.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	United Parcel Service Inc. interest costs incurred increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income	6,708)	11,548)	12,890)	1,343)	4,440)
Add: Income tax expense	1,865)	3,277)	3,705)	501)	1,212)
Add: Interest expense	785)	704)	694)	701)	653)
Earnings before interest and tax (EBIT)	9,358)	15,529)	17,289)	2,545)	6,305)

Interest costs incurred	903)	764)	752)	788)	744)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	11.92	22.06	24.91	3.63	9.66
Adjusted interest coverage ratio (with capitalized interest)²	10.36	20.33	22.99	3.23	8.47

2023 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 9,358 ÷ 785 = 11.92

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 9,358 ÷ 903 = 10.36

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	United Parcel Service Inc. adjusted interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

United Parcel Service Inc. (NYSE:UPS)

Analysis of Debt