Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

United Parcel Service Inc., net profit margin, long-term trends, calculation

Microsoft Excel
Net profit margin = 100 × Net income1 ÷ Revenue1
Dec 31, 2024 = 100 × ÷
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Dec 31, 2005 = 100 × ÷

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

Net Income
The net income demonstrates significant volatility throughout the period analyzed. After a strong start in 2005 and 2006 exceeding $3 billion, a dramatic drop to $382 million occurred in 2007, followed by a recovery in 2008 and 2009. From 2010 through 2017, net income generally ranged between $3 billion and $5 billion, showing periodic fluctuations. In 2018 and 2019, net income remained solid, around $4.4 billion to $4.9 billion. A steep decline is visible in 2020 with net income dropping to $1.3 billion, which contrasts with an exceptional peak in 2021 reaching nearly $13 billion. This peak was followed by a decline in 2022 and 2023, settling in the range of $6.7 billion to $11.5 billion, and a further moderate decrease projected in 2024 to approximately $5.8 billion.
Revenue
Revenue exhibited an overall upward trajectory from around $42.6 billion in 2005 to a peak nearing $100 billion in 2022. Despite minor setbacks, such as a decline around 2009 coinciding with economic downturns, revenue growth resumed from 2010 onward, showing steady incremental increases most years. The revenue plateaued slightly after 2022, with a modest decrease in 2023 and a nearly stable figure forecasted for 2024, indicating some market stabilization or challenges impacting topline growth.
Net Profit Margin
Profit margin trends reflect notable fluctuations analogous to net income. The margin started above 9% in 2005, then fell sharply to under 1% in 2007. Subsequent years saw recovery with margins stabilizing between 5% and 8%, though several dips below this range occurred, particularly in 2008, 2012, and 2014. A significant low in 2020 corresponds with pandemic-related challenges. The margin peaked impressively at 13.25% in 2021. Following this, the margin declined but remained above 6% through 2023 and slightly below in 2024, indicating a return towards average profitability despite fluctuations in income and revenue.
Overall Insights
The financial data indicate a company experiencing cyclical fluctuations influenced by both internal and external economic factors. Revenue growth over the long term shows resilience and expansion, but net income and profit margins reveal sensitivity to market conditions and operational challenges. The extraordinary surge in 2021 net income and margin suggests a unique event or exceptional performance year, not sustained in subsequent periods. The recent years’ trend points towards stabilization with modest growth in revenue but somewhat lower profitability compared to the peak year, implying ongoing adjustments within the business environment or operational effectiveness.

Comparison to Competitors

United Parcel Service Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel
United Parcel Service Inc. FedEx Corp. Uber Technologies Inc. Union Pacific Corp. United Airlines Holdings Inc.
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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., net profit margin, long-term trends, comparison to sector (transportation)

Microsoft Excel
United Parcel Service Inc. Transportation
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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)

United Parcel Service Inc., net profit margin, long-term trends, comparison to industry (industrials)

Microsoft Excel
United Parcel Service Inc. Industrials
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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).