Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

United Parcel Service Inc. (NYSE:UPS)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

United Parcel Service Inc., balance sheet: property, plant and equipment

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Vehicles 9,786  10,613  9,820  9,365  8,638 
Aircraft 20,549  19,045  17,499  16,248  15,653 
Land 2,052  2,087  2,000  1,582  1,397 
Buildings 5,425  5,046  4,808  4,035  3,439 
Building and leasehold improvements 4,921  4,898  4,323  3,934  3,612 
Plant equipment 14,684  13,849  11,833  9,387  8,430 
Technology equipment 2,626  2,206  2,093  1,907  1,741 
Equipment under operating leases —  —  —  29  29 
Construction-in-progress 2,048  1,983  2,112  2,239  735 
Property, plant and equipment, gross 62,091  59,727  54,488  48,726  43,674 
Accumulated depreciation and amortization (29,837) (29,245) (27,912) (26,608) (24,874)
Property, plant and equipment, net 32,254  30,482  26,576  22,118  18,800 

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).

Item Description The company
Property, plant and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. United Parcel Service Inc.’s property, plant and equipment, gross increased from 2018 to 2019 and from 2019 to 2020.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. United Parcel Service Inc.’s property, plant and equipment, net increased from 2018 to 2019 and from 2019 to 2020.

Asset Age Ratios (Summary)

United Parcel Service Inc., asset age ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Average age ratio 49.70% 50.74% 53.18% 56.44% 58.84%

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. United Parcel Service Inc.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.

Average Age

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 29,837  29,245  27,912  26,608  24,874 
Property, plant and equipment, gross 62,091  59,727  54,488  48,726  43,674 
Land 2,052  2,087  2,000  1,582  1,397 
Asset Age Ratio
Average age1 49.70% 50.74% 53.18% 56.44% 58.84%

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 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land)
= 100 × 29,837 ÷ (62,091 – 2,052) = 49.70%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. United Parcel Service Inc.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.