Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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United Parcel Service Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The income statement reveals a complex financial performance over the five-year period. While revenue initially increased, it subsequently declined, and operating profit experienced a significant contraction. Several expense categories demonstrate consistent increases, contributing to the overall shift in profitability. Net income followed a similar trajectory, decreasing substantially from 2021 to 2025.
- Revenue Trend
- Revenue peaked at US$100.338 billion in 2022 before declining steadily to US$88.661 billion in 2025. This represents an overall decrease of approximately 11.6% over the five-year period, indicating potential challenges in maintaining sales volume or pricing power.
- Expense Analysis
- Compensation and benefits consistently increased from US$46.707 billion in 2021 to US$48.605 billion in 2025. Repairs and maintenance, depreciation and amortization, and other occupancy expenses also exhibited steady growth throughout the period. Purchased transportation costs decreased significantly from 2021 to 2025, but remained substantial. Fuel expenses were volatile, peaking in 2022 before decreasing, but remaining a significant cost. Other expenses remained relatively stable, with a slight increase in 2025. Overall, operating expenses decreased slightly from US$87.244 billion in 2022 to US$80.794 billion in 2025, but remained high.
- Profitability
- Operating profit declined substantially from US$12.810 billion in 2021 to US$7.867 billion in 2025, a decrease of approximately 38.6%. Net income mirrored this trend, falling from US$12.890 billion to US$5.572 billion, representing a decrease of approximately 56.8%. This decline in profitability is attributable to the combination of decreasing revenue and increasing operating expenses.
- Non-Operating Items
- Investment income (expense) and other fluctuated considerably, moving from a positive US$4.479 billion in 2021 to a negative US$160 million in 2024 before recovering slightly to US$314 million in 2025. Interest expense increased steadily from US$694 million to US$1.017 billion. Other income and (expense) shifted from positive to negative values, contributing to overall volatility in income before income taxes.
- Tax Impact
- Income tax expense decreased in line with income before income taxes, from US$3.705 billion in 2021 to US$1.592 billion in 2025. The effective tax rate appears to have remained relatively consistent throughout the period.
In summary, the financial performance demonstrates a weakening trend in both revenue and profitability. While some expense categories showed signs of stabilization or decrease towards the end of the period, the overall trajectory indicates increasing challenges in maintaining financial health. The volatility in non-operating items further complicates the assessment of underlying business performance.