Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

United Parcel Service Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	5,572)	5,782)	6,708)	11,548)	12,890)
Depreciation and amortization	3,746)	3,609)	3,366)	3,188)	2,953)
Pension and postretirement benefit (income) expense	1,009)	1,698)	1,330)	(129)	(2,456)
Pension and postretirement benefit contributions	(1,361)	(1,524)	(1,393)	(2,342)	(576)
Self-insurance reserves	236)	44)	57)	(20)	178)
Deferred tax expense (benefit)	(8)	(15)	199)	531)	1,645)
Stock compensation expense	73)	24)	220)	1,568)	878)
Other losses	113)	262)	265)	123)	137)
Accounts receivable	(382)	(566)	1,256)	(322)	(2,147)
Other assets	65)	70)	87)	117)	312)
Accounts payable	(190)	262)	(1,377)	34)	1,265)
Accrued wages and withholdings	27)	501)	(296)	(189)	(245)
Other liabilities	(517)	(11)	(42)	(9)	151)
Changes in assets and liabilities, net of effects of business acquisitions	(997)	256)	(372)	(369)	(664)
Other operating activities	67)	(14)	(142)	6)	22)
Adjustments to reconcile net income to net cash from operating activities	2,878)	4,340)	3,530)	2,556)	2,117)
Net cash from operating activities	8,450)	10,122)	10,238)	14,104)	15,007)
Capital expenditures	(3,685)	(3,909)	(5,158)	(4,769)	(4,194)
Proceeds from disposal of businesses, property, plant and equipment	700)	1,115)	193)	12)	872)
Purchases of marketable securities	(90)	(76)	(3,521)	(1,906)	(312)
Sales and maturities of marketable securities	293)	2,748)	2,701)	255)	366)
Acquisitions, net of cash acquired	(1,968)	(71)	(1,329)	(755)	(602)
Other investing activities	15)	(24)	(19)	(309)	52)
Net cash used in investing activities	(4,735)	(217)	(7,133)	(7,472)	(3,818)
Net change in short-term debt	—)	(1,272)	1,272)	—)	—)
Proceeds from long-term borrowings	4,153)	2,785)	3,429)	—)	—)
Repayments of long-term borrowings	(2,069)	(2,487)	(2,429)	(2,304)	(2,773)
Purchases of common stock	(1,000)	(500)	(2,250)	(3,500)	(500)
Issuances of common stock	159)	232)	248)	262)	251)
Dividends	(5,398)	(5,399)	(5,372)	(5,114)	(3,437)
Other financing activities	14)	(209)	(432)	(529)	(364)
Net cash used in financing activities	(4,141)	(6,850)	(5,534)	(11,185)	(6,823)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	201)	(149)	33)	(100)	(21)
Net increase (decrease) in cash, cash equivalents and restricted cash	(225)	2,906)	(2,396)	(4,653)	4,345)
Cash, cash equivalents and restricted cash, beginning of period	6,112)	3,206)	5,602)	10,255)	5,910)
Cash, cash equivalents and restricted cash, end of period	5,887)	6,112)	3,206)	5,602)	10,255)

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 period demonstrates a fluctuating cash position with notable shifts in operating, investing, and financing activities. While net income generally declined from 2021 to 2025, adjustments to reconcile net income to net cash from operating activities consistently contributed positively to cash flow, though with some variation. Investing activities consistently represent a cash outflow, while financing activities also show consistent cash outflows, though these outflows decreased in later years.

Operating Activities: Net cash from operating activities decreased from US$15,007 million in 2021 to US$8,450 million in 2025. This decline, while substantial, was partially offset by significant adjustments to net income. Notably, pension and postretirement benefit activity shifted from a net expense in 2021 to a net income in 2022 and 2023, before returning to expense in 2024 and 2025. Accounts receivable showed volatility, with significant decreases in 2021 and 2022, a large increase in 2023, and subsequent decreases in 2024 and 2025. Changes in accounts payable and accrued wages also contributed to fluctuations in operating cash flow.
Investing Activities: Net cash used in investing activities consistently represented a significant outflow throughout the period, ranging from US$3,818 million to US$7,472 million. Capital expenditures were the primary driver of these outflows, remaining relatively stable between approximately US$3,900 million and US$5,158 million annually. Proceeds from the disposal of assets provided some offset, peaking at US$1,115 million in 2024, but were insufficient to counteract the capital expenditure demands. Purchases and sales of marketable securities also contributed to the net cash flow, with a notable increase in sales in 2023 and 2024.
Financing Activities: Net cash used in financing activities was substantial throughout the period, decreasing from US$6,823 million in 2021 to US$4,141 million in 2025. Significant components of this outflow included purchases of common stock and dividend payments, both of which remained consistently high. Proceeds from long-term borrowings partially offset these outflows, but were generally less than repayments of long-term debt. A notable decrease in net change in short-term debt is observed in 2023 and 2024.
Cash Position: The net increase (decrease) in cash, cash equivalents, and restricted cash fluctuated considerably. A significant increase occurred in 2021 (US$4,345 million), followed by decreases in 2022 (US$4,653 million) and 2023 (US$2,396 million). A positive increase was observed in 2024 (US$2,906 million), but a decrease occurred in 2025 (US$225 million). Despite these fluctuations, the ending cash balance remained above US$3 billion throughout the period, concluding at US$5,887 million in 2025.
Other Notable Items: Stock compensation expense increased significantly from 2021 to 2022, then decreased substantially in 2023 and 2024 before a slight increase in 2025. Other losses remained relatively consistent, with a slight decrease in 2025. The effect of exchange rate changes on cash varied, with a significant positive impact in 2025.

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United Parcel Service Inc. (NYSE:UPS)

Cash Flow Statement