United Parcel Service Inc. (NYSE:UPS)

The data reveals consistent growth in the gross value of property, plant, and equipment over the five-year period. This upward trend is visible across most asset categories, indicating ongoing investment and expansion.

Vehicles

The value of vehicles rose steadily from 9,786 million US dollars in 2020 to 11,912 million US dollars in 2024. The growth is gradual, reflecting continuous additions or upgrades to the vehicle fleet.

Aircraft

Aircraft assets displayed a steady increase, starting at 20,549 million US dollars in 2020 and reaching 23,768 million US dollars in 2024. The growth rate appears consistent year over year, suggesting sustained investment in air transportation equipment.

Land

Land values remained relatively stable, with a minor decline from 2,052 million US dollars in 2020 to 2,104 million US dollars in 2024. The small fluctuation suggests limited acquisitions or disposals in land holdings.

Buildings

The buildings category showed an upward trend, increasing from 5,425 million US dollars in 2020 to 6,714 million US dollars in 2024. This indicates ongoing investments in building infrastructure.

Building and Leasehold Improvements

This asset class grew modestly from 4,921 million US dollars in 2020 to 5,601 million US dollars in 2024, reflecting steady enhancements and upgrades to leased properties.

Plant Equipment

Plant equipment values increased significantly from 14,684 million US dollars in 2020 to 18,495 million US dollars in 2024, representing considerable capital expenditure on production or operational facilities.

Technology Equipment

Technology equipment showed variability, declining from 2,626 million US dollars in 2020 to 2,411 million US dollars in 2022, then rising again to 2,735 million US dollars in 2024. This pattern may indicate cycles of depreciation followed by replacement or upgrades.

Construction-in-Progress

This category fluctuated, dropping from 2,048 million US dollars in 2020 to 1,418 million US dollars in 2021, then peaking at 3,247 million US dollars in 2023 before declining to 1,967 million US dollars in 2024. This inconsistent pattern reflects the timing of ongoing development projects and capital commitments.

Property, Plant and Equipment, Gross

The gross value rose steadily from 62,091 million US dollars in 2020 to 73,296 million US dollars in 2024, evidencing continuous asset growth and investment activities.

Accumulated Depreciation and Amortization

Accumulated depreciation increased in magnitude from -29,837 million US dollars in 2020 to -36,117 million US dollars in 2024, consistent with the aging of assets over time and reflecting the consumption of asset value.

Property, Plant and Equipment, Net

Net property, plant, and equipment showed consistent growth from 32,254 million US dollars in 2020 to 37,179 million US dollars in 2024. The increase implies that asset additions outpaced depreciation, resulting in a strengthening of the net asset base.

Overall, the data indicates ongoing asset renewal and expansion with a strong investment focus in plant and equipment. Fluctuations in construction-in-progress and technology equipment suggest project timing effects and technology refresh cycles. The increase in accumulated depreciation aligns with asset aging, but net property, plant, and equipment growth signals sustained capital investment exceeding asset wear and tear.

Average Age Ratio

The average age ratio exhibited a relatively stable trend over the analyzed period. It started at 49.7% in December 2020 and then slightly increased to 50.0% in December 2021. The ratio experienced a marginal rise to 50.1% at the end of 2022. In 2023, there was a minor decrease to 49.83%, followed by an increase to 50.73% in 2024. Overall, the data indicates a consistent average age ratio hovering around the 50% mark, suggesting the company maintains the aging profile of its property, plant, and equipment at a steady level without significant fluctuations throughout these years.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization shows a consistent upward trend over the five-year period. Starting at $29,837 million in 2020, it increases steadily each year, reaching $36,117 million by 2024. This suggests ongoing depreciation of property, plant, and equipment assets, reflecting the aging and usage of the asset base.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment also exhibits continuous growth throughout the period. Beginning at $62,091 million in 2020, it rises annually to $73,296 million by 2024. This indicates ongoing capital investment and asset additions, suggesting a deliberate effort to expand or upgrade the company’s operational infrastructure.

Land

The value of land remains relatively stable, with a slight fluctuation around the $2,100 million mark. It starts at $2,052 million in 2020, peaks marginally at $2,140 million in 2021 and 2022, then slightly decreases to $2,104 million in 2024. This stability implies limited acquisition or disposal activity related to land assets.

Average Age Ratio

The average age ratio of the property, plant, and equipment remains steady around the 50% mark, indicating that, on average, the fixed assets are approximately halfway through their useful lives. The ratio moves from 49.7% in 2020 to 50.73% in 2024, with minor year-to-year variations. This consistency reflects balanced asset replacement or maintenance practices alongside new investments.

Overall Insights

The data indicate a strategic approach to asset management characterized by continual investment in fixed assets coupled with regular depreciation. The steady increase in gross property, plant, and equipment aligns with business expansion or modernization, while the rising accumulated depreciation reflects the aging asset base. The stable land valuation suggests limited changes in land holdings. The average age ratio remaining near 50% signifies a well-maintained asset portfolio with neither significant acceleration in aging nor recent large-scale asset retirements.