Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Analysis of Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

United Parcel Service Inc., adjustment to net income

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (as reported) 1,343  4,440  4,791  4,910  3,431 
Add: Change in unrealized gain (loss) on marketable securities, net of tax 2  6  —  (1) — 
Net income (adjusted) 1,345  4,446  4,791  4,909  3,431 

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-21).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

United Parcel Service Inc., adjusted profitability ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 1.59% 5.99% 6.67% 7.45% 5.63%
Adjusted net profit margin 1.59% 6.00% 6.67% 7.45% 5.63%
Return on Equity (ROE)
Reported ROE 204.41% 135.90% 158.59% 491.00% 847.16%
Adjusted ROE 204.72% 136.09% 158.59% 490.90% 847.16%
Return on Assets (ROA)
Reported ROA 2.15% 7.67% 9.58% 10.81% 8.50%
Adjusted ROA 2.16% 7.68% 9.58% 10.81% 8.50%

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-21).

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.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. United Parcel Service Inc.’s adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. United Parcel Service Inc.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

United Parcel Service Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 1,343  4,440  4,791  4,910  3,431 
Revenue 84,628  74,094  71,861  65,872  60,906 
Profitability Ratio
Net profit margin1 1.59% 5.99% 6.67% 7.45% 5.63%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 1,345  4,446  4,791  4,909  3,431 
Revenue 84,628  74,094  71,861  65,872  60,906 
Profitability Ratio
Adjusted net profit margin2 1.59% 6.00% 6.67% 7.45% 5.63%

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-21).

2020 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 1,343 ÷ 84,628 = 1.59%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 1,345 ÷ 84,628 = 1.59%

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.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 1,343  4,440  4,791  4,910  3,431 
Equity for controlling interests 657  3,267  3,021  1,000  405 
Profitability Ratio
ROE1 204.41% 135.90% 158.59% 491.00% 847.16%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 1,345  4,446  4,791  4,909  3,431 
Equity for controlling interests 657  3,267  3,021  1,000  405 
Profitability Ratio
Adjusted ROE2 204.72% 136.09% 158.59% 490.90% 847.16%

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-21).

2020 Calculations

1 ROE = 100 × Net income ÷ Equity for controlling interests
= 100 × 1,343 ÷ 657 = 204.41%

2 Adjusted ROE = 100 × Adjusted net income ÷ Equity for controlling interests
= 100 × 1,345 ÷ 657 = 204.72%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. United Parcel Service Inc.’s adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 1,343  4,440  4,791  4,910  3,431 
Total assets 62,408  57,857  50,016  45,403  40,377 
Profitability Ratio
ROA1 2.15% 7.67% 9.58% 10.81% 8.50%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 1,345  4,446  4,791  4,909  3,431 
Total assets 62,408  57,857  50,016  45,403  40,377 
Profitability Ratio
Adjusted ROA2 2.16% 7.68% 9.58% 10.81% 8.50%

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-21).

2020 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,343 ÷ 62,408 = 2.15%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,345 ÷ 62,408 = 2.16%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. United Parcel Service Inc.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.