Common-Size Balance Sheet: Assets
United Parcel Service Inc., common-size consolidated balance sheet: assets
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).
An analysis of the asset composition over the five-year period reveals several noteworthy trends in the allocation between current and non-current assets. Total assets consistently represent the full base of 100% each year, serving as the reference point for all component percentages.
- Current Assets
- Current assets as a proportion of total assets show a declining trend from 32.39% in 2020 to 27.56% in 2024, indicating a gradual reduction in short-term asset holdings.
- Within current assets, cash and cash equivalents exhibit significant fluctuations, peaking at 14.78% in 2021, dropping sharply to 4.52% in 2023, and recovering somewhat to 8.72% in 2024. This volatility suggests active cash management or changing liquidity needs.
- Marketable securities display a rise from 0.65% in 2020 to a high of 4.04% in 2023 before decreasing to 0.29% in 2024, indicating possible shifts in short-term investment strategy.
- Accounts receivable, net, remain relatively stable, with a slight downward trend from 17.23% in 2020 to 15.51% in 2024, possibly reflecting steady credit policies or improved collections.
- Inventories slightly increase from 0.99% to a peak of 1.32% in 2023, followed by a small decline to 1.18% in 2024, which may indicate adjustments in stock management aligned with operational needs.
- Other current assets maintain a fairly consistent proportion, fluctuating modestly around 1.5% to 1.85% throughout the period.
- Non-Current Assets
- The share of non-current assets grows steadily from 67.61% in 2020 to 72.44% in 2024, underlining an increasing investment in long-term assets.
- Property, plant, and equipment (net) show a general upward trajectory from 51.68% in 2020 to 53.06% in 2024, peaking at 52.14% in 2023, highlighting ongoing capital expenditure or asset revaluation efforts.
- Operating lease right-of-use assets slightly increase from 4.92% to 5.92%, with the highest point at 6.08% in 2023, demonstrating consistent utilization of leasing arrangements.
- Goodwill rises moderately from 5.4% in 2020 to a peak of 6.88% in 2023 before declining to 6.14% in 2024, which could reflect acquisitions followed by impairment or asset reclassification.
- Intangible assets, net, increase from 3.64% to 4.66% in 2023, then slightly decrease to 4.37%, suggesting investments in non-physical assets or amortization effects.
- Deferred income tax assets steadily decline from 0.84% to 0.16% across the period, possibly due to changing tax strategies or recognition patterns.
- Other non-current assets fluctuate significantly, showing a peak of 4.6% in 2022 before settling back near 2.79% in 2024, indicating sporadic acquisitions or reclassifications in non-current holdings.
Overall, the data illustrates a strategic shift toward increasing the company's long-term asset base while managing fluctuations in liquidity and short-term investments. The notable increase in property, plant, and equipment alongside intangible assets and goodwill suggests sustained investment in core operations and intellectual property. Meanwhile, the declining trend in deferred income tax assets and fluctuating current assets indicate an actively managed balance sheet adapting to operational demands and external conditions over the analyzed time frame.