Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

United Parcel Service Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The analysis of the financial data reveals several trends concerning liquidity and short-term financial health as reflected by current assets, current liabilities, and the current ratio over a 20-year period.

Current Assets
Current assets demonstrate an overall increasing trend from 2005 through 2024, starting at 11,003 million USD and peaking around 24,934 million USD in 2021. Although there are some fluctuations, such as a decrease during the 2006–2008 period and a dip after 2021, the general trajectory is upward, indicating growing resources expected to be converted to cash within one year.
Current Liabilities
Current liabilities exhibit a less consistent pattern but generally increase over time. Beginning at 6,793 million USD in 2005, liabilities fluctuate and rise especially after 2013, reaching a maximum of 18,140 million USD in 2022 before slightly declining in the subsequent years. This rise suggests increased short-term obligations which require careful management to avoid liquidity issues.
Current Ratio
The current ratio shows a downward trend from 1.62 in 2005 to troughs close to or just above 1.0 in 2019 and 2023. It oscillates with periods of recovery, notably around 2010 and 2021, where it rises back above 1.4, indicating better short-term liquidity positions at those points. However, the general decline highlights increased pressure on the ability to meet short-term liabilities with current assets, potentially signaling tighter liquidity in recent years.

In summary, despite a significant growth in current assets over the long term, current liabilities have increased at a somewhat faster or comparable pace in recent years, leading to a gradual reduction in the current ratio. This dynamic suggests that while the company's resource base has expanded, its short-term commitments have grown as well, necessitating ongoing attention to liquidity management to maintain financial stability.


Comparison to Competitors

United Parcel Service Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Transportation)

United Parcel Service Inc., current ratio, long-term trends, comparison to sector (transportation)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Industrials)