Microsoft Excel LibreOffice Calc

United Parcel Service Inc. (NYSE:UPS)


Analysis of Investments

Advanced level


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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income (as reported) 4,440  4,791  4,910  3,431  4,844 
Add: Change in unrealized gain (loss) on marketable securities, net of tax —  (1) —  (1)
Net income (adjusted) 4,446  4,791  4,909  3,431  4,843 

Based on: 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), 10-K (filing date: 2016-02-25).


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

United Parcel Service Inc., adjusted profitability ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 5.99% 6.67% 7.45% 5.63% 8.30%
Adjusted net profit margin 6.00% 6.67% 7.45% 5.63% 8.30%
Return on Equity (ROE)
Reported ROE 135.90% 158.59% 491.00% 847.16% 196.11%
Adjusted ROE 136.09% 158.59% 490.90% 847.16% 196.07%
Return on Assets (ROA)
Reported ROA 7.67% 9.58% 10.81% 8.50% 12.64%
Adjusted ROA 7.68% 9.58% 10.81% 8.50% 12.64%

Based on: 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), 10-K (filing date: 2016-02-25).

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 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. United Parcel Service Inc.’s adjusted ROE deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. United Parcel Service Inc.’s adjusted ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

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


Adjusted Net Profit Margin

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 4,440  4,791  4,910  3,431  4,844 
Revenue 74,094  71,861  65,872  60,906  58,363 
Profitability Ratio
Net profit margin1 5.99% 6.67% 7.45% 5.63% 8.30%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 4,446  4,791  4,909  3,431  4,843 
Revenue 74,094  71,861  65,872  60,906  58,363 
Profitability Ratio
Adjusted net profit margin2 6.00% 6.67% 7.45% 5.63% 8.30%

Based on: 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), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,440 ÷ 74,094 = 5.99%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 4,446 ÷ 74,094 = 6.00%

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 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 4,440  4,791  4,910  3,431  4,844 
Equity for controlling interests 3,267  3,021  1,000  405  2,470 
Profitability Ratio
ROE1 135.90% 158.59% 491.00% 847.16% 196.11%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 4,446  4,791  4,909  3,431  4,843 
Equity for controlling interests 3,267  3,021  1,000  405  2,470 
Profitability Ratio
Adjusted ROE2 136.09% 158.59% 490.90% 847.16% 196.07%

Based on: 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), 10-K (filing date: 2016-02-25).

2019 Calculations

1 ROE = 100 × Net income ÷ Equity for controlling interests
= 100 × 4,440 ÷ 3,267 = 135.90%

2 Adjusted ROE = 100 × Adjusted net income ÷ Equity for controlling interests
= 100 × 4,446 ÷ 3,267 = 136.09%

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 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 4,440  4,791  4,910  3,431  4,844 
Total assets 57,857  50,016  45,403  40,377  38,311 
Profitability Ratio
ROA1 7.67% 9.58% 10.81% 8.50% 12.64%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 4,446  4,791  4,909  3,431  4,843 
Total assets 57,857  50,016  45,403  40,377  38,311 
Profitability Ratio
Adjusted ROA2 7.68% 9.58% 10.81% 8.50% 12.64%

Based on: 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), 10-K (filing date: 2016-02-25).

2019 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 4,440 ÷ 57,857 = 7.67%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 4,446 ÷ 57,857 = 7.68%

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 2017 to 2018 and from 2018 to 2019.