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, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	5,782)	6,708)	11,548)	12,890)	1,343)
Depreciation and amortization	3,609)	3,366)	3,188)	2,953)	2,698)
Pension and postretirement benefit (income) expense	1,698)	1,330)	(129)	(2,456)	7,125)
Pension and postretirement benefit contributions	(1,524)	(1,393)	(2,342)	(576)	(3,125)
Self-insurance reserves	44)	57)	(20)	178)	503)
Deferred tax expense (benefit)	(15)	199)	531)	1,645)	(858)
Stock compensation expense	24)	220)	1,568)	878)	796)
Other losses	262)	265)	123)	137)	917)
Accounts receivable	(566)	1,256)	(322)	(2,147)	(1,562)
Other assets	70)	87)	117)	312)	218)
Accounts payable	262)	(1,377)	34)	1,265)	904)
Accrued wages and withholdings	501)	(296)	(189)	(245)	1,631)
Other liabilities	(11)	(42)	(9)	151)	(110)
Changes in assets and liabilities, net of effects of business acquisitions and dispositions	256)	(372)	(369)	(664)	1,081)
Other operating activities	(14)	(142)	6)	22)	(21)
Adjustments to reconcile net income to net cash from operating activities	4,340)	3,530)	2,556)	2,117)	9,116)
Net cash from operating activities	10,122)	10,238)	14,104)	15,007)	10,459)
Capital expenditures	(3,909)	(5,158)	(4,769)	(4,194)	(5,412)
Proceeds from disposal of businesses, property, plant and equipment	1,115)	193)	12)	872)	40)
Purchases of marketable securities	(76)	(3,521)	(1,906)	(312)	(254)
Sales and maturities of marketable securities	2,748)	2,701)	255)	366)	360)
Acquisitions, net of cash acquired	(71)	(1,329)	(755)	(602)	(20)
Other investing activities	(24)	(19)	(309)	52)	3)
Net cash used in investing activities	(217)	(7,133)	(7,472)	(3,818)	(5,283)
Net change in short-term debt	(1,272)	1,272)	—)	—)	(2,462)
Proceeds from long-term borrowings	2,785)	3,429)	—)	—)	5,003)
Repayments of long-term borrowings	(2,487)	(2,429)	(2,304)	(2,773)	(3,392)
Purchases of common stock	(500)	(2,250)	(3,500)	(500)	(224)
Issuances of common stock	232)	248)	262)	251)	285)
Dividends	(5,399)	(5,372)	(5,114)	(3,437)	(3,374)
Other financing activities	(209)	(432)	(529)	(364)	(353)
Net cash used in financing activities	(6,850)	(5,534)	(11,185)	(6,823)	(4,517)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(149)	33)	(100)	(21)	13)
Net increase (decrease) in cash, cash equivalents and restricted cash	2,906)	(2,396)	(4,653)	4,345)	672)
Cash, cash equivalents and restricted cash, beginning of period	3,206)	5,602)	10,255)	5,910)	5,238)
Cash, cash equivalents and restricted cash, end of period	6,112)	3,206)	5,602)	10,255)	5,910)

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).

The financial performance demonstrates notable fluctuations in key profitability and cash flow metrics over the analyzed periods. Net income peaked significantly in 2021 at US$12,890 million before gradually declining to US$5,782 million by 2024, indicating a contraction in profitability during the latter years. Depreciation and amortization expenses exhibit a steady upward trend, growing from US$2,698 million in 2020 to US$3,609 million in 2024, reflecting ongoing capital asset usage and amortization of intangible assets.

Pension and postretirement benefit expenses shifted from a substantial income in 2020 to positive expenses in subsequent years, suggesting increasing pension-related costs, while contributions to these plans have generally decreased from -US$3,125 million in 2020 to -US$1,524 million in 2024, indicating lowered cash outflows for pension funding. Self-insurance reserves and deferred tax expense experienced volatility but remained relatively minor in magnitude compared to other financial items.

Stock compensation expenses peaked sharply in 2022 at US$1,568 million, before falling dramatically in the following years to US$24 million in 2024. Other losses remained low but stable, indicating limited impact on overall results. Changes in working capital items such as accounts receivable and accounts payable reveal inconsistent patterns, with accounts receivable fluctuating from negative values in early years to positive and then negative again, while accounts payable showed a marked decrease to -US$1,377 million in 2023 before partially recovering.

Operating cash flows demonstrate resilience, with net cash from operating activities reaching a high of US$15,007 million in 2021 but declining to approximately US$10,122 million by 2024. Capital expenditures remained significant throughout, though with some reduction in 2024 compared to previous years, whereas proceeds from disposals of assets showed an increasing trend, particularly in 2024 with US$1,115 million, supporting asset turnover management.

Investing activities experienced a marked decrease in net cash outflows in 2024 (US$-217 million) compared to previous years when outflows ranged between -US$3,818 million and -US$7,472 million, largely due to reduced purchases of marketable securities and acquisitions. Financing activities reveal a pattern of heavy debt repayments and reduced repurchasing of common stock in 2024 relative to previous periods. Dividends consistently increased over time, reaching US$5,399 million in 2024, illustrating a commitment to shareholder returns despite reduced net income.

The company's liquidity fluctuated over the periods, with cash and cash equivalents nearly doubling from US$5,910 million in 2020 to US$10,255 million in 2021, then falling sharply to US$3,206 million in 2023 before recovering again to US$6,112 million in 2024. Exchange rate effects had a modest but inconsistent impact on cash balances. Overall, the data suggests the company is managing operational cash flows effectively amid declining profitability and is recalibrating its investment and financing strategies to maintain liquidity and support shareholder distributions.

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United Parcel Service Inc. (NYSE:UPS)

Cash Flow Statement