Analysis of Revenues
Revenues as Reported
United Parcel Service Inc., income statement, revenues
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).
The analysis of the revenue data reveals several key trends and shifts across different service categories over the five-year span.
- Next Day Air
- The revenue from this segment showed a steady increase from 2020 to 2022, peaking at approximately $10.7 billion. However, a decline is observed in 2023 and 2024, with revenues falling to just under $9.7 billion, suggesting a possible reduction in demand or pricing adjustments.
- Deferred
- This category exhibited moderate growth until 2022, reaching nearly $6 billion. Following that, revenues decreased notably in 2023 and 2024, dropping below $4.8 billion, indicating a potential scaling back or shift in strategic focus on deferred services.
- Ground
- Consistently the largest contributor to revenue, Ground services increased from about $39.3 billion in 2020 to a peak approaching $47.5 billion in 2022. There was a slight decline in 2023 to approximately $45 billion, but 2024 saw a modest recovery, signaling relative stability and continued importance.
- Cargo & Other (U.S. Domestic Package)
- This segment began reporting in 2022, showing a small revenue figure that fluctuated modestly between $247 million and $569 million in subsequent years, indicating a minor but somewhat volatile part of the domestic package revenue stream.
- U.S. Domestic Package
- Total domestic package revenue rose steadily from nearly $53.5 billion in 2020 to about $64.6 billion in 2022 before experiencing a downturn in 2023, settling around $60.2 billion, with a slight uptick in 2024. The trend suggests initial growth followed by stabilization at a lower level.
- International Package
- Comprising domestic, export, and cargo & other subcomponents, international package revenue increased significantly from $15.9 billion in 2020 to nearly $19.7 billion in 2022, then decreased to roughly $17.8 billion by 2023 with a marginal increase in 2024. The individual subcategories show a consistent pattern of export revenue growth followed by a slight decline, and variability in cargo-related revenues.
- Forwarding
- Forwarding revenues rose from approximately $7 billion in 2020 to nearly $9.9 billion in 2021 but then declined sharply over the next three years, reaching approximately $4.7 billion in 2024, indicating significant contraction or market challenges in this segment.
- Logistics
- This sector demonstrated steady growth, increasing from around $4.1 billion in 2020 to nearly $6.4 billion in 2024, reflecting a consistent expansion in logistics services within the company's portfolio.
- Freight
- The data is incomplete beyond 2021, but freight revenue dropped sharply from over $3.1 billion in 2020 to about $1.1 billion in 2021, with no subsequent data, suggesting either discontinuation or significant restructuring of this segment.
- Other
- Revenues in the other category increased from just under $1 billion in 2020 to approximately $1.7 billion in 2022, followed by a decline and partial recovery in 2023 and 2024, indicating a somewhat fluctuating contribution.
- Supply Chain Solutions
- Total revenues rose from roughly $15.2 billion in 2020 to a peak of about $17.4 billion in 2021, then declined steadily to approximately $12.7 billion in 2024, highlighting a contraction trend in this area after strong initial growth.
- Consolidated Revenue
- The overall consolidated revenue rose from approximately $84.6 billion in 2020 to $100.3 billion in 2022, marking a period of growth. Thereafter, it decreased significantly to about $90.9 billion in 2023 and stabilized around $91.1 billion in 2024, indicating a reversal of previous growth trends and the onset of a plateau.
In summary, the company experienced strong revenue growth across most segments through 2021 and 2022, followed by declines or stabilization in key areas such as Next Day Air, Deferred, Forwarding, and Supply Chain Solutions from 2023 onward. Ground and Logistics services showed resilience and steady growth, while some segments like Freight displayed discontinuity or contraction. The overall consolidated revenue trend reflects an initial expansion succeeded by a notable slowdown and plateauing in recent years.