Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Common-Size Income Statement 
Quarterly Data

United Parcel Service Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Compensation and benefits -53.25 -56.59 -54.79 -54.89 -51.37 -53.74 -52.72 -53.62 -51.78 -54.74 -50.77 -50.00 -49.20 -47.62 -45.86 -47.65 -45.91 -48.08 -48.36 -50.13
Repairs and maintenance -3.34 -3.75 -3.56 -3.40 -3.06 -3.21 -3.36 -3.31 -2.82 -3.41 -3.09 -3.16 -2.25 -2.64 -2.60 -2.57 -2.18 -2.67 -2.56 -2.70
Depreciation and amortization -3.97 -4.32 -4.41 -4.23 -3.63 -4.07 -4.07 -4.14 -3.48 -3.97 -3.75 -3.64 -3.28 -3.20 -3.08 -3.13 -2.72 -3.18 -3.15 -3.15
Purchased transportation -11.74 -11.50 -11.88 -12.67 -14.60 -15.17 -15.00 -14.95 -15.32 -14.80 -14.39 -15.45 -16.63 -17.27 -17.71 -18.87 -20.64 -20.01 -18.98 -18.52
Fuel -4.61 -5.00 -4.99 -4.91 -4.40 -4.80 -5.16 -4.88 -5.15 -5.37 -4.94 -5.54 -5.81 -6.33 -6.85 -5.00 -4.23 -4.10 -3.91 -3.52
Other occupancy -2.33 -2.56 -2.56 -2.82 -2.15 -2.32 -2.26 -2.60 -2.12 -2.28 -2.08 -2.40 -1.78 -1.77 -1.70 -2.01 -1.61 -1.66 -1.72 -2.03
Other expenses -10.25 -7.85 -9.23 -9.35 -9.22 -7.76 -8.52 -9.07 -9.40 -9.04 -8.37 -8.72 -9.23 -8.27 -7.94 -7.42 -8.71 -7.81 -7.42 -7.87
Operating expenses -89.48% -91.58% -91.41% -92.27% -88.44% -91.08% -91.09% -92.57% -90.06% -93.62% -87.40% -88.92% -88.18% -87.12% -85.73% -86.66% -85.99% -87.51% -86.09% -87.93%
Operating profit 10.52% 8.42% 8.59% 7.73% 11.56% 8.92% 8.91% 7.43% 9.94% 6.38% 12.60% 11.08% 11.82% 12.88% 14.27% 13.34% 14.01% 12.49% 13.91% 12.07%
Investment income (expense) and other 0.26 0.44 0.37 0.37 -2.25 0.70 0.63 0.54 -0.83 0.59 0.59 0.74 5.38 1.38 1.34 1.29 0.88 1.18 1.47 15.78
Interest expense -1.09 -1.36 -1.12 -1.03 -0.91 -1.03 -0.97 -0.90 -0.83 -0.94 -0.87 -0.82 -0.67 -0.73 -0.69 -0.71 -0.62 -0.76 -0.71 -0.77
Other income (expense) -0.83% -0.92% -0.75% -0.66% -3.16% -0.34% -0.34% -0.35% -1.66% -0.36% -0.27% -0.08% 4.71% 0.65% 0.65% 0.58% 0.26% 0.42% 0.76% 15.01%
Income before income taxes 9.69% 7.50% 7.83% 7.07% 8.41% 8.59% 8.57% 7.08% 8.28% 6.02% 12.33% 11.00% 16.52% 13.53% 14.93% 13.91% 14.27% 12.91% 14.67% 27.08%
Income tax expense -2.37 -1.38 -1.79 -1.56 -1.60 -1.67 -2.11 -1.95 -1.84 -0.67 -2.90 -2.74 -3.75 -2.84 -3.42 -2.99 -3.13 -2.86 -3.24 -6.16
Net income 7.32% 6.12% 6.05% 5.51% 6.80% 6.92% 6.46% 5.13% 6.44% 5.35% 9.44% 8.27% 12.77% 10.69% 11.50% 10.92% 11.14% 10.05% 11.42% 20.92%

Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The financial performance, as represented by common-size income statements, reveals several notable trends between March 2021 and December 2025. Revenue consistently remained at 100% throughout the period, serving as the base for all percentage calculations. A significant portion of revenue is consistently allocated to compensation and benefits, fluctuating between approximately 45% and 57% over the observed timeframe, with a clear upward trend towards the end of the period.

Cost of Goods Sold & Operating Expenses
Purchased transportation, fuel, and repairs & maintenance collectively represent a substantial portion of revenue, ranging from approximately 27% to 36% during the analyzed period. Fuel costs experienced a notable increase from 3.52% in March 2021 to around 5% in early 2023, before decreasing to 4.61% by December 2025. Purchased transportation costs demonstrated a consistent downward trend, decreasing from 18.52% to 11.74% over the period. Other occupancy and other expenses also contribute significantly, consistently accounting for around 10% of revenue. Operating expenses, in total, consistently consumed between 85% and 94% of revenue, with a peak of 93.62% in September 2023.

Operating profit as a percentage of revenue exhibited volatility, ranging from a low of 6.38% in September 2023 to a high of 14.01% in December 2021. A general downward trend in operating profit is observed from 2021 through 2023, followed by a slight recovery towards the end of 2024 and 2025. Investment income and other items show fluctuations, with a significant spike in June 2022 (5.38%), but generally remain relatively small contributors to overall profitability.

Profitability & Taxes
Interest expense remained relatively stable, fluctuating between approximately 0.67% and 1.36% of revenue. Income before income taxes demonstrated a similar pattern to operating profit, with a decline in 2023 and a subsequent partial recovery. The effective tax rate, as indicated by income tax expense as a percentage of revenue, varied between approximately 2.86% and 6.16%. Net income as a percentage of revenue followed the trends of income before taxes, ranging from a low of 5.35% to a high of 20.92%, with a noticeable decrease in 2023 and a subsequent increase towards the end of the period.

The period between September 2023 and December 2025 shows some stabilization in several expense categories, alongside a modest recovery in operating profit and net income. However, compensation and benefits continue to represent a growing proportion of revenue, potentially indicating increasing labor costs. The decrease in purchased transportation costs is a positive trend, potentially reflecting efficiency gains or changes in logistical strategies.

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