Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

United Parcel Service Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current maturities of long-term debt, commercial paper and finance leases 2.62 4.73 3.29 3.07 4.20
Current maturities of operating leases 1.05 1.00 0.87 0.84 0.90
Accounts payable 8.99 8.95 10.56 10.84 10.34
Accrued wages and withholdings 5.22 4.55 5.69 5.50 5.72
Self-insurance reserves 1.55 1.86 1.50 1.51 1.74
Accrued group welfare and retirement plan contributions 1.98 2.09 1.51 1.50 1.49
Liabilities to be disposed of 0.00 0.00 0.00 0.00 0.56
Other current liabilities 2.05 1.77 2.07 2.06 2.32
Current liabilities 23.46% 24.95% 25.50% 25.31% 27.27%
Long-term debt and finance leases, excluding current maturities 27.75 26.70 24.35 28.51 35.30
Non-current operating leases 5.19 5.30 4.55 4.37 4.07
Pension and postretirement benefit obligations 9.79 8.69 6.76 11.59 25.34
Deferred income tax liabilities 5.13 5.32 6.05 4.50 0.78
Other non-current liabilities 4.78 4.61 4.94 5.16 6.16
Non-current liabilities 52.64% 50.62% 46.65% 54.13% 71.66%
Total liabilities 76.11% 75.56% 72.16% 79.44% 98.93%
Class A common stock 0.00 0.00 0.00 0.00 0.00
Class B common stock 0.01 0.01 0.01 0.01 0.01
Additional paid-in capital 0.19 0.00 0.00 1.94 1.39
Retained earnings 29.80 29.71 29.98 23.31 11.05
Accumulated other comprehensive loss -6.15 -5.30 -2.18 -4.72 -11.40
Deferred compensation obligations 0.01 0.01 0.02 0.02 0.03
Treasury stock -0.01 -0.01 -0.02 -0.02 -0.03
Equity for controlling interests 23.86% 24.42% 27.82% 20.54% 1.05%
Noncontrolling interests 0.04 0.01 0.02 0.02 0.02
Total shareowners’ equity 23.89% 24.44% 27.84% 20.56% 1.07%
Total liabilities and shareowners’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

Current Liabilities
Current liabilities as a percentage of total liabilities and shareowners’ equity show a gradual decline from 27.27% in 2020 to 23.46% in 2024. Specific items such as current maturities of long-term debt and finance leases decrease overall from 4.2% to 2.62%, albeit with some fluctuation, reaching a peak at 4.73% in 2023. Accounts payable also decline from 10.34% in 2020 to 8.99% in 2024, marking a decrease in short-term obligations. Accrued wages and withholdings follow a variable trend but end slightly lower than the initial value. Other current liabilities remain relatively stable with minor variation.
Non-Current Liabilities
Non-current liabilities show a notable decrease from 71.66% in 2020 to a low of 46.65% in 2022, followed by a moderate increase to 52.64% in 2024. Long-term debt excluding current maturities declines significantly from 35.3% to 27.75%, indicating reduced reliance on long-term borrowing. Non-current operating leases increase gradually from 4.07% to 5.19%, suggesting greater lease commitments. Pension and postretirement benefit obligations drop sharply from 25.34% in 2020 to 6.76% in 2022 before a mild rebound to 9.79% in 2024. Deferred income tax liabilities rise steadily until 2022, then decline slightly thereafter. Other non-current liabilities show a small but steady decrease over the period.
Total Liabilities
Total liabilities as a share of total liabilities and shareowners’ equity experience a substantial reduction from 98.93% in 2020 to 72.16% in 2022, followed by a slight increase to 76.11% in 2024. This trend reflects an overall transition toward lower leverage within the reporting period.
Shareowners’ Equity
Total shareowners’ equity exhibits a marked increase from 1.07% in 2020 to 27.84% in 2022, before declining slightly to 23.89% in 2024. This increase corresponds primarily with rising retained earnings, which nearly triple from 11.05% to approximately 29.8%, demonstrating strong earnings retention. Accumulated other comprehensive loss decreases in negative value from -11.4% to -2.18% by 2022, then deteriorates somewhat again, implying fluctuating other comprehensive income items. Additional paid-in capital details are incomplete but are relatively minor. Equity for controlling interests follows a similar trajectory to total equity, confirming the increase in ownership stake.
Leverage and Financial Structure Insights
The data suggests a strategic deleveraging effort in early years with reductions in both current and long-term debt components as proportions of total capitalization. This deleveraging coincides with a strong build-up of retained earnings and equity, strengthening the financial position and possibly reducing financial risk. Operational lease liabilities show an increasing commitment over the period, which may reflect a shift toward off-balance-sheet financing strategies or operational changes. The volatility observed in pension-related obligations indicates changes in benefit funding policies or actuarial assumptions. Overall, the balance sheet appears to show improved capitalization and a more balanced liability-equity mix by 2024 compared to 2020.