United Parcel Service Inc. (NYSE:UPS)

The financial data over the five-year period reveals a consistent downward trend in both current assets and adjusted current assets for the company.

Current Assets

The value of current assets increased from 20,216 million US dollars in 2020 to 24,934 million US dollars in 2021, indicating a significant growth in short-term resources during that year. However, from 2021 onwards, there is a continuous decline in current assets, dropping to 22,217 million US dollars in 2022, then further decreasing to 19,413 million US dollars in 2023, and stabilizing around 19,310 million US dollars in 2024. This decline suggests a reduction in liquidity or short-term asset holdings over the latter part of the period.

Adjusted Current Assets

Adjusted current assets exhibit a similar pattern. Starting at 20,354 million US dollars in 2020, there is an increase to 25,062 million US dollars in 2021. Following this peak, values decreased steadily to 22,363 million US dollars in 2022, then down to 19,539 million US dollars in 2023, and finally to 19,446 million US dollars in 2024. The adjustments have a minor effect relative to the nominal current assets, with the adjusted figures consistently slightly higher but mirroring the overall movement.

Overall, this indicates that both nominal and adjusted short-term assets peaked in 2021 and have since undergone a gradual but notable reduction. This downward trend may reflect changes in operational efficiency, inventory management, receivables collection, or a strategic shift in asset allocation. The decline suggests increased pressure on liquidity or potential restructuring of current asset composition in recent years.

The financial data reveals the trends in total and adjusted total assets over a five-year period. From December 31, 2020, to December 31, 2024, total assets exhibited an overall increasing trend initially, followed by a slight decline towards the end of the period. Specifically, total assets grew from 62,408 million US dollars in 2020 to a peak of 71,124 million US dollars in 2022. After this peak, the total assets slightly decreased to 70,857 million US dollars in 2023 and further to 70,070 million US dollars in 2024.

The adjusted total assets follow a similar pattern, starting at 62,019 million US dollars in 2020 and rising to 71,131 million US dollars in 2022. Following this peak, adjusted total assets also declined slightly to 70,857 million US dollars in 2023 and then to 70,094 million US dollars in 2024. The close alignment between total and adjusted total assets throughout the years indicates consistency in the adjustments made to the asset values.

Trend Analysis:

Both total and adjusted total assets increased notably between 2020 and 2022, indicating growth in asset base during this period.

The plateau and subsequent decline in 2023 and 2024 suggest a stabilization or modest contraction of asset holdings during these later years.

The minimal difference between total and adjusted total assets implies that the adjustments do not substantially alter the overall asset valuation.

The data shows the trends in total liabilities and adjusted total liabilities over a five-year period ending December 31, 2024. Both measures display an overall declining trend from 2020 to 2024, with some fluctuations.

Total liabilities

Total liabilities decreased from 61,739 million USD in 2020 to 55,136 million USD in 2021, indicating a significant reduction. This downward trend continued in 2022, with liabilities further decreasing to 51,321 million USD. However, a reversal is observed in 2023, where total liabilities rose to 53,543 million USD before slightly declining to 53,327 million USD in 2024. The overall pattern suggests the company has been actively managing and reducing its liabilities over the period, notwithstanding the slight increase seen in 2023.

Adjusted total liabilities

Adjusted total liabilities mirrored the decline observed in total liabilities, starting from 61,251 million USD in 2020 and consistently decreasing each year to reach 49,732 million USD in 2024. The reduction appears steadier in comparison, with no uptick in 2023, suggesting that adjustments to liabilities—possibly for non-recurring items or one-time effects—highlight a clearer and more consistent decrease in the company's financial obligations over time.

In summary, the trends indicate an overall successful effort in liability reduction. The steadier decline in adjusted total liabilities strengthens the interpretation of improving financial stability by decreasing obligations. The slight increase in unadjusted total liabilities in 2023 may warrant further examination to understand its drivers and implications.

Equity for controlling interests

The equity for controlling interests experienced a significant increase from 657 million US dollars in 2020 to 14,253 million US dollars in 2021. This upward trend continued in 2022, reaching 19,786 million US dollars. However, in the subsequent years, there was a decline, with equity falling to 17,306 million US dollars in 2023 and further to 16,718 million US dollars in 2024. Overall, after a strong growth phase, the equity showed a downward adjustment in the latter years.

Adjusted total shareowners’ equity

Adjusted total shareowners’ equity followed a similar trend to the equity for controlling interests. It increased markedly from 768 million US dollars in 2020 to 17,346 million US dollars in 2021 and further to 24,112 million US dollars in 2022. Subsequently, it declined to 21,086 million US dollars in 2023 and then to 20,362 million US dollars in 2024. This pattern indicates a peak in 2022 with a moderate contraction in equity values thereafter.

Overall Analysis

Both measures of equity show substantial growth during the initial three-year period (2020-2022) followed by a period of decline over the final two years (2023-2024). The initial increase likely reflects a strengthening financial position or accumulation of retained earnings, while the later decrease could indicate share repurchases, dividend payments exceeding earnings, revaluation adjustments, or other factors reducing equity despite earlier gains. The consistency in the direction of movement between the two equity measures suggests alignment in how controlling interests and adjusted total shareowners’ equity evolved during this timeframe.

Total Reported Debt

The total reported debt shows a declining trend from 24,654 million US dollars in 2020 to 19,662 million US dollars in 2022, indicating a reduction in debt levels during these years. However, debt increased again in 2023 to 22,264 million US dollars before slightly decreasing to 21,284 million US dollars in 2024. This pattern suggests initially effective debt reduction measures followed by a moderate increase in leverage in the later periods.

Equity for Controlling Interests

Equity for controlling interests exhibits strong growth from 657 million US dollars in 2020 to a peak of 19,786 million US dollars in 2022. After this peak, equity declines to 17,306 million US dollars in 2023 and further to 16,718 million US dollars in 2024. This indicates significant equity accumulation over the initial years, possibly driven by earnings retention or capital infusion, followed by a period of equity contraction or distribution.

Total Reported Capital

Total reported capital increases substantially from 25,311 million US dollars in 2020 to a maximum of 39,570 million US dollars in 2023, followed by a minor decrease to 38,002 million US dollars in 2024. This overall upward trajectory is influenced by changes in both debt and equity components, reflecting growth in the company's financing base over the period.

Adjusted Total Debt

The adjusted total debt follows a slightly different pattern compared to reported debt. It decreases from 27,754 million US dollars in 2020 to 23,521 million US dollars in 2022, suggesting a deleveraging trend, but then rises again to 26,729 million US dollars in 2023 before falling slightly to 25,652 million US dollars in 2024. These adjustments may reflect refinements in debt accounting or inclusion of additional liabilities.

Adjusted Total Shareowners’ Equity

Adjusted total shareowners’ equity shows a significant rise from 768 million US dollars in 2020 to 24,112 million US dollars in 2022, indicating substantial growth in equity value. This value then decreases to 21,086 million US dollars in 2023 and further to 20,362 million US dollars in 2024. The pattern aligns closely with equity for controlling interests, indicating consistent adjustments in equity measurement.

Adjusted Total Capital

Adjusted total capital trends upward from 28,522 million US dollars in 2020 to a peak of 47,815 million US dollars in 2023, followed by a modest decline to 46,014 million US dollars in 2024. This reflects the combined movements in adjusted debt and equity components, indicating an overall expansion of the company’s capital base with minor contraction toward the end of the period.

Net Income Trend

The net income fluctuated significantly over the observed period. Initially, there was a modest net income of 1,343 million US dollars at the end of 2020, followed by a sharp increase to 12,890 million in 2021. The net income slightly decreased in 2022 to 11,548 million but showed a more pronounced decline in 2023 and 2024, falling to 6,708 million and then to 5,782 million, respectively. This indicates a peak in 2021 with a subsequent downward trend over the following years.

Adjusted Net Income Trend

The adjusted net income exhibited a volatile pattern. In 2020, it was negative at -586 million, suggesting a loss after adjustments. A substantial improvement was noted in 2021 where adjusted net income soared to 18,360 million. It then dropped to 13,826 million in 2022 and declined further to 4,678 million in 2023. There was a slight recovery in 2024 to 5,226 million, although this figure remains considerably below the peak in 2021.

Comparison and Insights

Both net income and adjusted net income peaked in 2021, showing strong performance for that year. Afterward, both metrics generally declined, with net income falling off more steadily, while adjusted net income showed higher variability, including a negative value in the earliest period and some recovery in the final year. The divergence between the net and adjusted net income in 2020 highlights the potential impact of special items or adjustments on profitability. The overall downward trend after 2021 may indicate challenges in sustaining high profitability or the occurrence of one-time gains in that peak year.