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)

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3 months ended: Mar 31, 2026 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 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Compensation and benefits -54.45 -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 -3.74 -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 -4.65 -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 -13.04 -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 -5.11 -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 -3.18 -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 -9.87 -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 -94.02% -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 5.98% 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 0.58 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 -1.25 -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) -0.67% -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 5.30% 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 -1.23 -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 4.08% 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-Q (reporting date: 2026-03-31), 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).

An analysis of the common-size income statement reveals a consistent compression of operating margins over the observed period. While revenue serves as the constant baseline, total operating expenses have trended upward, rising from an average of approximately 86% to 88% of revenue in 2021 to peaks exceeding 94% by early 2026. This escalation in cost structure has led to a corresponding decline in operating profitability.

Operating Cost Drivers
Compensation and benefits represent the most significant expenditure, showing a steady increase from approximately 45% to 50% of revenue in 2021 to a range of 53% to 56% between 2024 and 2026. Parallel increases are observed in depreciation and amortization, which climbed from roughly 3.1% to 4.6% of revenue, and repairs and maintenance, which rose from 2.7% to 3.7%. These trends suggest rising labor costs and increased capital intensity in the operational model.
Transportation and Fuel Dynamics
A notable inverse trend is observed in purchased transportation, which decreased from a peak of 20.64% in late 2021 to approximately 11% to 13% in the 2024-2026 period. This suggests a strategic shift toward utilizing internal capacity over third-party providers. Fuel expenses exhibited significant volatility, peaking at 6.85% in mid-2022 before stabilizing between 4.4% and 5.1% in subsequent periods.
Operating and Net Profitability
Operating profit margins have faced downward pressure, declining from a high of 14.27% in mid-2022 to a low of 5.98% by March 31, 2026. Although there were periodic recoveries, the overall trajectory indicates a diminishing ability to scale revenue relative to operating costs. This is further reflected in the net income margin, which dropped from historical levels around 10% to 12% in 2021-2022 to a range of 4% to 7% in the latter years of the analysis.
Non-Operating Items and Interest
Interest expense as a percentage of revenue has gradually increased from approximately 0.62% to 1.25%, indicating a higher cost of debt relative to total revenue. Other income and investment income, which showed an anomalous spike in early 2021, have since normalized, contributing minimally to the overall margin and, in some quarters, turning into a net expense.

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