Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Current maturities of long-term debt and finance leases	608)	1,838)	3,348)	2,341)	2,131)
Current maturities of operating leases	763)	733)	709)	621)	580)
Accounts payable	6,633)	6,302)	6,340)	7,512)	7,523)
Accrued wages and withholdings	3,715)	3,655)	3,224)	4,049)	3,819)
Self-insurance reserves	1,137)	1,086)	1,320)	1,069)	1,048)
Accrued group welfare and retirement plan contributions	1,389)	1,390)	1,479)	1,076)	1,038)
Other current liabilities	1,375)	1,437)	1,256)	1,472)	1,430)
Current liabilities	15,620)	16,441)	17,676)	18,140)	17,569)
Long-term debt and finance leases, excluding current maturities	23,519)	19,446)	18,916)	17,321)	19,784)
Non-current operating leases	3,700)	3,635)	3,756)	3,238)	3,033)
Pension and postretirement benefit obligations	6,567)	6,859)	6,159)	4,807)	8,047)
Deferred income tax liabilities	3,690)	3,595)	3,772)	4,302)	3,125)
Other non-current liabilities	3,739)	3,351)	3,264)	3,513)	3,578)
Non-current liabilities	41,215)	36,886)	35,867)	33,181)	37,567)
Total liabilities	56,835)	53,327)	53,543)	51,321)	55,136)
Class A common stock	1)	2)	2)	2)	2)
Class B common stock	8)	7)	7)	7)	7)
Additional paid-in capital	275)	136)	—)	—)	1,343)
Retained earnings	20,151)	20,882)	21,055)	21,326)	16,179)
Accumulated other comprehensive loss	(4,208)	(4,309)	(3,758)	(1,549)	(3,278)
Deferred compensation obligations	5)	7)	9)	13)	16)
Treasury stock	(5)	(7)	(9)	(13)	(16)
Equity for controlling interests	16,227)	16,718)	17,306)	19,786)	14,253)
Noncontrolling interests	28)	25)	8)	17)	16)
Total shareowners’ equity	16,255)	16,743)	17,314)	19,803)	14,269)
Total liabilities and shareowners’ equity	73,090)	70,070)	70,857)	71,124)	69,405)

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).

Overall, the company’s financial structure demonstrates a dynamic shift in liabilities and equity over the five-year period. Total liabilities initially decreased, then stabilized, and subsequently increased, while total shareowners’ equity experienced growth followed by a decline. A notable trend is the shifting composition within both liability and equity sections.

Current Liabilities: Current liabilities exhibited a slight increase from 2021 to 2022, peaking at US$18.140 million, before decreasing consistently through 2025 to US$15.620 million. This decrease is primarily driven by reductions in current maturities of long-term debt and finance leases. Accounts payable remained relatively stable, fluctuating within a narrow range. Accrued wages and withholdings showed an initial increase, followed by a decline, while self-insurance reserves and accrued group welfare and retirement plan contributions generally increased over the period.
Non-Current Liabilities: Non-current liabilities decreased from 2021 to 2022, then increased steadily through 2025, reaching US$41.215 million. This trend is largely influenced by changes in long-term debt and finance leases, excluding current maturities, and pension and postretirement benefit obligations. Deferred income tax liabilities remained relatively stable. The increase in non-current liabilities in later years suggests a reliance on longer-term financing.
Total Liabilities: Total liabilities decreased from US$55.136 million in 2021 to US$51.321 million in 2022, then remained relatively stable around US$53-54 million for the next two years, before increasing to US$56.835 million in 2025. The overall trend indicates a period of liability management followed by renewed growth in obligations.
Shareowners’ Equity: Total shareowners’ equity increased significantly from 2021 to 2022, reaching US$19.803 million, driven primarily by an increase in retained earnings. However, equity then experienced a gradual decline through 2025, falling to US$16.255 million. This decline is attributable to a decrease in retained earnings and an increase in accumulated other comprehensive loss. Class A and Class B common stock remained relatively constant, with a minor increase in Class B common stock in 2025. Additional paid-in capital saw a significant increase in 2024 and 2025.
Total Liabilities and Shareowners’ Equity: Total liabilities and shareowners’ equity increased from US$69.405 million in 2021 to US$71.124 million in 2022, then decreased to US$70.070 million in 2024, before increasing to US$73.090 million in 2025. This reflects the combined trends in liabilities and equity, with the 2025 increase primarily driven by the growth in total liabilities.

The company’s capital structure has evolved, with a shift towards greater reliance on long-term debt and a reduction in retained earnings contributing to a decrease in overall equity. The fluctuations in various liability accounts suggest active management of short-term and long-term obligations.

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United Parcel Service Inc. (NYSE:UPS)

Balance Sheet: Liabilities and Stockholders’ Equity