Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

United Parcel Service Inc., ROE, long-term trends, calculation

Microsoft Excel
ROE = 100 × Net income1 ÷ Equity for controlling interests1
Dec 31, 2024 = 100 × ÷
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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).

1 US$ in millions

The financial data over the examined periods exhibits significant fluctuations in net income, equity for controlling interests, and return on equity (ROE), illustrating notable volatility in the company's profitability and capital structure.

Net Income
Net income shows marked variability across the years, with an initial amount of 3,870 million US dollars in 2005, peaking at 12,890 million in 2021. However, there are several years with sharp declines, such as 2007 and 2008, where net income fell to notably low levels (382 million in 2007 and 807 million in 2008). After reaching the peak in 2021, net income again declined in the subsequent years, finishing at 5,782 million in 2024. This pattern suggests periods of both strong growth and contraction, indicating potential external influences or internal changes impacting profitability.
Equity for Controlling Interests
The equity base begins at 16,884 million US dollars in 2005 but declines steadily with some fluctuations to a low point of 405 million in 2016. From 2017 onwards, equity generally recovers, rising significantly to its highest recorded value of 19,786 million in 2022, before experiencing a slight decrease through 2024. This trend reveals considerable shifts in shareholders' equity, possibly due to operational results, share repurchases, or capital restructuring.
Return on Equity (ROE)
ROE values indicate extreme volatility throughout the timeline. Starting at 22.92% in 2005, ROE exhibits substantial spikes during certain years, notably reaching an extraordinary peak of 847.16% in 2016. This peak likely reflects the exceptionally low equity base in the same year, amplifying return ratios. Subsequently, ROE remains elevated but declines steadily from 204.41% in 2020 to 34.59% in 2024. The wide fluctuations suggest that ROE is heavily influenced by changes in equity levels as well as net income performance, highlighting a variable efficiency in generating profits relative to equity employed.

Overall, the data points to a company experiencing periods of financial distress and recovery, with sharp movements in profitability and equity levels significantly affecting performance metrics. The high degree of fluctuation in ROE, particularly, underscores the impact of variable equity on return measures and suggests caution when assessing profitability trends based solely on this ratio.

Comparison to Competitors

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

Microsoft Excel
United Parcel Service Inc. FedEx Corp. Uber Technologies Inc. Union Pacific Corp. United Airlines Holdings Inc.
Dec 31, 2024
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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., ROE, long-term trends, comparison to sector (transportation)

Microsoft Excel
United Parcel Service Inc. Transportation
Dec 31, 2024
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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., ROE, 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).