Common-Size Income Statement
Quarterly Data
United Parcel Service Inc., common-size consolidated income statement (quarterly data)
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial data over the observed quarters reveals several notable trends regarding cost structure, profitability, and operating efficiency.
- Compensation and Benefits
- This significant cost category as a percentage of revenue shows variability but an overall downward trend from -55.92% in early 2020 to the mid-to-low -50% range in 2021, followed by increased volatility and a slight rise toward late 2023 and early 2024 periods. The range generally fluctuates between -45% and -55%, indicating substantial investment in labor costs relative to revenue.
- Repairs and Maintenance
- The allocation to repairs and maintenance remains relatively stable, fluctuating narrowly around -2.5% to -3.5%. There is a modest increase in the later periods, suggesting incremental maintenance expenditures or aging assets requiring more upkeep.
- Depreciation and Amortization
- This expense as a proportion of revenue hovers in a tight band between approximately -2.7% and -4.2%, with a slight rising tendency toward later quarters. This trend may reflect increased capital investment or changes in asset valuation or useful lives.
- Purchased Transportation
- Purchased transportation costs increased during 2020, peaking around -20%, and then steadily declined through 2023 and into 2024, reaching as low as -12.67%. This reduction indicates improved efficiencies, renegotiated contracts, or a shift towards more internalized transportation operations.
- Fuel
- Fuel costs exhibit noticeable fluctuation, initially declining sharply from -4.22% in early 2020 to below -2.5% mid-year 2020, then rising significantly in 2021 and 2022, peaking at nearly -6.85%. Afterwards, the percentage stabilizes around -4.4% to -5.5%, consistent with fluctuating fuel prices impacting cost structure.
- Other Occupancy and Expenses
- Other occupancy costs remain relatively stable within a narrow range near -2%, with a minor increase toward late 2023 and early 2024. Other expenses show more variability, generally between -7.4% and -9.4%, with occasional spikes indicating episodic or variable operating expenditures.
- Operating Expenses
- Operating expenses as a whole vary between approximately -85% and -94% of revenue. Notably, there is improvement during mid-2020 to 2021, with operating expenses falling to the mid-80% range, followed by increased expense ratios in late 2023, signaling potential cost pressures or diminished operational efficiencies.
- Operating Profit
- Operating profit margins demonstrate volatility across the periods. Starting near 6% in early 2020, they improved substantially to double-digit percentages (~12-14%) through 2021 and 2022, indicating strong operational performance. Late 2023 sees a notable dip to 6.38%, followed by a moderate recovery and fluctuations around 7% to 11.5% into early 2025.
- Investment and Other Income/Expense Items
- Investment income and other related items exhibit extreme volatility, including a sharp loss indicated in the fourth quarter of 2020 (-24.7%), followed by positive spikes in early 2021 (above 15%), then settling to low single-digit figures with occasional losses. Interest expense remains relatively steady around -0.7% to -1.03%, with a gradual slight increase toward the later periods. Other income (expense) fluctuates irregularly, including material negative values in some quarters, contributing to income before taxes volatility.
- Income Before Income Taxes and Net Income
- Income before taxes shows high volatility with a deep negative spike late 2020 (-17.22%), followed by strong recovery peaking at over 27% in early 2021. Subsequent periods settle into a range of roughly 7% to 16%, with fluctuations consistent with operating income and investment income volatility. Income tax expense fluctuates in a narrow negative range mostly between -1.5% and -3.5%, with some quarters showing tax benefits or expenses that offset income fluctuations. Net income mirrors pre-tax income volatility, with strong gains exceeding 20% in early 2021 and declines in late 2020 and late 2023, stabilizing around 5% to 12% during most quarters.
Overall, the company presents a financial profile marked by operational resilience, especially noticeable in improved margins during 2021 and 2022 following 2020 disruptions. Cost management shows focus on transportation and labor efficiencies, though volatility in fuel and investment income components introduces earnings variability. The data suggests periods of strategic adjustment and external impacts affecting both expenses and profitability.