Operating Profit Margin
since 2005
Calculation
United Parcel Service Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 8.87% | = | 100 | × | 7,867) | ÷ | 88,661) |
| Dec 31, 2024 | 9.30% | = | 100 | × | 8,468) | ÷ | 91,070) |
| Dec 31, 2023 | 10.05% | = | 100 | × | 9,141) | ÷ | 90,958) |
| Dec 31, 2022 | 13.05% | = | 100 | × | 13,094) | ÷ | 100,338) |
| Dec 31, 2021 | 13.17% | = | 100 | × | 12,810) | ÷ | 97,287) |
| Dec 31, 2020 | 9.08% | = | 100 | × | 7,684) | ÷ | 84,628) |
| Dec 31, 2019 | 10.52% | = | 100 | × | 7,798) | ÷ | 74,094) |
| Dec 31, 2018 | 9.77% | = | 100 | × | 7,024) | ÷ | 71,861) |
| Dec 31, 2017 | 11.43% | = | 100 | × | 7,529) | ÷ | 65,872) |
| Dec 31, 2016 | 8.98% | = | 100 | × | 5,467) | ÷ | 60,906) |
| Dec 31, 2015 | 13.14% | = | 100 | × | 7,668) | ÷ | 58,363) |
| Dec 31, 2014 | 8.53% | = | 100 | × | 4,968) | ÷ | 58,232) |
| Dec 31, 2013 | 12.69% | = | 100 | × | 7,034) | ÷ | 55,438) |
| Dec 31, 2012 | 2.48% | = | 100 | × | 1,343) | ÷ | 54,127) |
| Dec 31, 2011 | 11.45% | = | 100 | × | 6,080) | ÷ | 53,105) |
| Dec 31, 2010 | 11.86% | = | 100 | × | 5,874) | ÷ | 49,545) |
| Dec 31, 2009 | 8.39% | = | 100 | × | 3,801) | ÷ | 45,297) |
| Dec 31, 2008 | 10.45% | = | 100 | × | 5,382) | ÷ | 51,486) |
| Dec 31, 2007 | 1.16% | = | 100 | × | 578) | ÷ | 49,692) |
| Dec 31, 2006 | 13.95% | = | 100 | × | 6,635) | ÷ | 47,547) |
| Dec 31, 2005 | 14.43% | = | 100 | × | 6,143) | ÷ | 42,581) |
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), 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 operating profit margin exhibited considerable fluctuation between 2005 and 2025. Initial years demonstrated a relatively strong and stable performance, followed by a period of volatility and, ultimately, a return to more moderate levels. A detailed examination reveals distinct phases in the margin’s trajectory.
- Initial Stability and Decline (2005-2009)
- From 2005 to 2007, the operating profit margin remained in a range of 13.95% to 14.43%, indicating consistent profitability. A significant decline occurred in 2008, dropping to 10.45%, and continued into 2009, reaching a low of 8.39%. This period likely reflects the impact of broader economic conditions and potentially increased operating costs.
- Recovery and Subsequent Volatility (2010-2015)
- The operating profit margin experienced a recovery between 2010 and 2011, rising to 11.86% and 11.45% respectively. However, this was followed by a sharp decrease in 2012 to 2.48%, representing a substantial drop in profitability. The margin then rebounded strongly in 2013 to 12.69%, followed by a decrease to 8.53% in 2014, and a further increase to 13.14% in 2015. This period suggests sensitivity to external factors and potentially varying levels of cost control.
- Moderate Performance and Recent Trends (2016-2025)
- From 2016 to 2019, the operating profit margin fluctuated between 8.98% and 10.52%, indicating a period of moderate, relatively stable performance. A significant increase was observed in 2020 and 2021, reaching 13.17% and 13.05% respectively, potentially driven by increased demand related to global events. The margin then decreased to 10.05% in 2022 and further to 9.30% in 2023, before settling at 8.87% in 2025. This recent downward trend suggests potential pressures on profitability, possibly from rising costs or increased competition.
Overall, the operating profit margin demonstrates a cyclical pattern with periods of stability, sharp declines, and subsequent recoveries. The most recent trend indicates a softening of profitability, warranting further investigation into the underlying drivers.
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Comparison to Competitors
United Parcel Service Inc., operating profit margin, long-term trends, comparison to competitors
| United Parcel Service Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2025 | 8.87% | 5.93% | 10.70% | 40.17% | 7.98% |
| Dec 31, 2024 | 9.30% | 6.34% | 6.36% | 40.05% | 8.93% |
| Dec 31, 2023 | 10.05% | 5.45% | 2.98% | 37.65% | 7.84% |
| Dec 31, 2022 | 13.05% | 6.68% | -5.75% | 39.87% | 5.20% |
| Dec 31, 2021 | 13.17% | 6.98% | -21.97% | 42.83% | -4.15% |
| Dec 31, 2020 | 9.08% | 3.49% | -43.66% | 40.11% | -41.41% |
| Dec 31, 2019 | 10.52% | 6.41% | -60.76% | 39.40% | 9.94% |
| Dec 31, 2018 | 9.77% | 7.44% | — | 37.30% | 7.97% |
| Dec 31, 2017 | 11.43% | 8.35% | — | 37.95% | 9.27% |
| Dec 31, 2016 | 8.98% | 6.11% | — | 36.47% | 11.87% |
| Dec 31, 2015 | 13.14% | 3.93% | — | 36.91% | 13.64% |
| Dec 31, 2014 | 8.53% | 7.56% | — | 36.49% | 6.10% |
| Dec 31, 2013 | 12.69% | 5.76% | — | 33.90% | 3.26% |
| Dec 31, 2012 | 2.48% | 7.46% | — | 32.23% | 0.10% |
| Dec 31, 2011 | 11.45% | 6.05% | — | 29.27% | 4.91% |
| Dec 31, 2010 | 11.86% | 5.75% | — | 29.36% | 4.20% |
| Dec 31, 2009 | 8.39% | 2.10% | — | 23.98% | -0.99% |
| Dec 31, 2008 | 10.45% | 5.47% | — | 22.68% | -21.98% |
| Dec 31, 2007 | 1.16% | 9.30% | — | 20.73% | 5.15% |
| Dec 31, 2006 | 13.95% | 9.33% | — | 18.51% | 2.31% |
| Dec 31, 2005 | 14.43% | 8.42% | — | 13.22% | -1.26% |
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), 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).