Analysis of Debt
Total Debt (Carrying Amount)
United Parcel Service Inc., balance sheet: debt
US$ in millions
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).
| 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 increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total long-term debt, including current maturities (fair value) | 20,300) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.95 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.29%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.90% | 1,000) | 39) | |
| 2.40% | 499) | 12) | |
| 3.05% | 997) | 30) | |
| 3.40% | 748) | 25) | |
| 2.50% | 398) | 10) | |
| 4.45% | 746) | 33) | |
| 4.88% | 895) | 44) | |
| 5.15% | 894) | 46) | |
| 6.20% | 1,486) | 92) | |
| 5.20% | 495) | 26) | |
| 4.88% | 492) | 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) | |
| 5.50% | 1,087) | 60) | |
| 5.60% | 590) | 33) | |
| 4.77% | 1,755) | 84) | |
| 7.62% | 279) | 21) | |
| 5.50% | 83) | 5) | |
| 5.13% | 544) | 28) | |
| 1.63% | 731) | 12) | |
| 1.00% | 521) | 5) | |
| 1.50% | 521) | 8) | |
| 3.84% | 455) | 17) | |
| 3.28% | 149) | 5) | |
| 3.21% | 42) | 1) | |
| 3.26% | 29) | 1) | |
| 3.18% | 100) | 3) | |
| Total | 21,282) | 912) | |
| 4.29% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 912 ÷ 21,282 = 4.29%
Interest Costs Incurred
United Parcel Service Inc., interest costs incurred
US$ in millions
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).
| 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 2022 to 2023 and from 2023 to 2024. |
| Capitalized interest | Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. | United Parcel Service Inc. capitalized interest increased from 2022 to 2023 and from 2023 to 2024. |
| 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 2022 to 2023 and from 2023 to 2024. |
Adjusted Interest Coverage Ratio
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).
2024 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 8,308 ÷ 866 = 9.59
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 8,308 ÷ 987 = 8.42
| 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 2022 to 2023 and from 2023 to 2024. |