United Parcel Service Inc. (NYSE:UPS)

The financial ratios reveal several noteworthy trends over the five-year period. The total asset turnover, both reported and adjusted, increased slightly from 1.36 in 2020 to a peak of around 1.41 in 2022, before declining to approximately 1.28-1.30 in 2023-2024. This suggests a moderate improvement in asset utilization efficiency up to 2022, followed by a slight reduction.

The current ratio exhibited fluctuations, rising from about 1.19 in 2020 to 1.42 in 2021, then decreasing to a low near 1.10 in 2023, before a modest rebound to around 1.17 in 2024. Both reported and adjusted figures follow similar patterns, indicating some variability in short-term liquidity with a general downward trend after 2021.

Leverage metrics showed a dramatic reduction in reported debt to equity, falling from an exceptionally high ratio of 37.53 in 2020 to levels below 1.5 from 2021 onward. Adjusted debt to equity ratios confirmed this trend, decreasing significantly and stabilizing near 1.26 by 2024. Similarly, debt to capital ratios declined from near unity in 2020 to approximately 0.56 by 2023 and 2024, indicating a substantial deleveraging over time.

Financial leverage ratios also decreased notably, with reported leverage dropping from 94.99 in 2020 to the range of approximately 3.59 to 4.19 between 2022 and 2024. Adjusted financial leverage followed a similar downward trajectory, reaching about 3.44 in 2024. This aligns with the observed debt reduction, reflecting an overall lighter leverage position.

Profitability metrics experienced significant variability. The reported net profit margin increased sharply from 1.59% in 2020 to 13.25% in 2021, then diminished steadily to 6.35% by 2024. The adjusted net profit margin, while showing a negative value in 2020, peaked at 18.87% in 2021 and subsequently declined to approximately 5.74% in 2024. This indicates that the company experienced a peak profitability phase in 2021, followed by a contraction in margins.

Return on equity (ROE) similarly peaked in 2021 for both reported (90.44%) and adjusted figures (105.85%), then demonstrated a persistent decline through 2024, reaching 34.59% reported and 25.67% adjusted. This suggests a reduction in equity efficiency despite remaining at relatively elevated levels.

Return on assets (ROA) trends followed the same pattern, with reported ROA rising from 2.15% in 2020 to 18.57% in 2021 before easing to 8.25% in 2024. Adjusted ROA rose to 26.47% in 2021 and then fell to 7.46% in 2024. This trend indicates decreasing asset profitability after strong performance in 2021.

In summary, the company demonstrated improved operational efficiency and reduced leverage from 2020 to 2022, accompanied by strong profitability peaks in 2021. However, subsequent years showed a modest decline in asset turnover, liquidity ratios trending lower after initial improvement, and a consistent decrease in profit margins, ROE, and ROA through 2024. The overall pattern reflects a transition from high growth and profitability phases toward more moderate financial performance and a more conservative capital structure.

Total Asset Turnover

Increased until 2022, then declined slightly through 2024, indicating fluctuating asset efficiency.

Current Ratio

Rose sharply in 2021, declined after, showing variable liquidity with a downward trend post-2021.

Debt to Equity and Debt to Capital

Marked reduction from very high 2020 levels to stabilized moderate leverage by 2024, signaling deleveraging.

Financial Leverage

Decreased sharply, corroborating lower debt levels and reduced financial risk.

Net Profit Margin

Sharp rise in 2021 followed by gradual decline, indicating peak profitability in 2021 diminishing thereafter.

Return on Equity

Peaked in 2021, then trended downward but remained relatively strong by 2024.

Return on Assets

Followed ROE pattern, with strong peak in 2021 and subsequent decline in asset profitability.

The financial data reveals several important trends over the five-year period.

Revenue

Revenue increased notably from 2020 to 2022, rising from approximately $84.6 billion to over $100.3 billion. However, in the subsequent years, there was a decline, with revenue decreasing to around $90.9 billion in 2023 and then stabilizing near $91.1 billion in 2024. This pattern suggests strong growth culminating in 2022, followed by a contraction and then a plateau.

Total Assets

Total assets grew steadily from about $62.4 billion in 2020 to roughly $71.1 billion in 2022. After peaking in 2022, total assets slightly decreased in the following years, reaching approximately $70.1 billion by 2024. The asset level remained relatively stable post-2022, indicating limited growth or possible asset optimization.

Reported and Adjusted Total Asset Turnover

Both reported and adjusted total asset turnover ratios showed a similar trend. These ratios increased from 1.36 in 2020 to a peak of 1.41 in 2022, indicating improved efficiency in generating revenue from assets. However, the ratios then declined to 1.28 in 2023 and slightly recovered to 1.30 in 2024. The decrease after 2022 aligns with the observed decline in revenue, suggesting a reduction in asset utilization efficiency during that period. The consistency between reported and adjusted values indicates minor adjustments in asset computations, maintaining the overall trend interpretation.

Overall, the data indicates a phase of growth and improving asset efficiency up to 2022, followed by a period of contraction and stabilization in revenue and total assets, accompanied by a slight decrease in asset turnover efficiency. This suggests a possible shift in business conditions or strategy affecting operational performance starting in 2023.

The annual financial data reveals notable variations in both assets and liabilities over the five-year period. There is a general trend of fluctuation in current assets, which peaked in 2021 at 24,934 million US dollars before subsequently declining through 2024 to a level slightly below that of 2020. Current liabilities, on the other hand, exhibited a gradual increase from 2020 through 2022, reaching a high of 18,140 million US dollars. This was followed by a decline in liabilities during 2023 and 2024.

The reported current ratio, which measures the ability to cover short-term obligations with short-term assets, shows a peak in 2021 at 1.42, indicating strong liquidity that year. Afterwards, the ratio decreased to 1.1 in 2023, reflecting a tightened liquidity position, though it partially recovered to 1.17 in 2024. This pattern suggests some easing in liquidity pressures after 2023 but still reflects a position slightly weaker than the peak year 2021.

In parallel, the adjusted current assets and adjusted current ratio follow a similar trend to their reported counterparts. Adjusted current assets rose to a high in 2021, decreased afterward, and stabilized around the 2024 level close to that of 2020. The adjusted current ratio similarly peaked at 1.43 in 2021, dipped to 1.11 in 2023, and improved marginally to 1.18 by 2024. These adjusted measures reinforce the interpretation of liquidity tightening post-2021, with some recovery toward the end of the period.

Current Assets

Fluctuated with a peak in 2021 followed by a decline stabilizing near the initial 2020 level by 2024.

Current Liabilities

Gradually increased through 2022, then decreased in the last two years.

Reported Current Ratio

Peaked in 2021, decreased significantly by 2023, with partial recovery in 2024.

Adjusted Current Assets and Ratio

Tracked closely with reported figures, confirming observed liquidity trends.

Overall, the data depict a period of initially strong liquidity in 2021, followed by a reduction in short-term asset coverage relative to liabilities over the next two years, with some improvement toward 2024. This trend may reflect changing operational conditions or financial management strategies impacting working capital and liquidity management over the period analyzed.

The financial data reveals significant fluctuations in the company's capital structure over the analyzed five-year period from 2020 to 2024. Notably, both total debt and equity components display discernible trends that impact leverage ratios.

Total Debt

Total debt initially decreased from $24,654 million at the end of 2020 to a low of $19,662 million in 2022, indicating a reduction in borrowing or repayments surpassing new debt issuance. However, debt rose again to $22,264 million in 2023 before slightly declining to $21,284 million in 2024, reflecting a partial reversal of the downward trend.

Equity for Controlling Interests

Equity exhibited strong growth, surging dramatically from a relatively low base of $657 million in 2020 to $14,253 million in 2021. This growth continued, reaching $19,786 million in 2022. After this peak, equity decreased moderately to $17,306 million in 2023 and $16,718 million in 2024. Overall, the equity base expanded substantially over the period despite minor declines in the final two years.

Debt to Equity Ratios (Reported)

The reported debt to equity ratio demonstrates a marked decrease from an extremely high 37.53 in 2020 to below 2.0 starting in 2021. It fell further to 0.99 in 2022, indicating a balanced capital structure with debt roughly equalling equity. Subsequently, this ratio rose to 1.29 and 1.27 in 2023 and 2024, respectively, suggesting a modest increase in leverage but still maintaining a relatively balanced equity to debt relationship compared to the beginning of the period.

Adjusted Total Debt and Equity

Similar trends are observed in adjusted figures. Adjusted total debt decreased from $27,754 million in 2020 to $23,521 million in 2022 before increasing again to $26,729 million in 2023 and then decreasing slightly in 2024. Adjusted total shareholders’ equity demonstrated a strong increase from $768 million in 2020 to $24,112 million in 2022, followed by a decline to $21,086 million in 2023 and $20,362 million in 2024.

Adjusted Debt to Equity Ratios

The adjusted debt to equity ratio mirrors the reported ratio, decreasing significantly from 36.14 in 2020 to below 1.0 in 2022, indicating a substantial deleveraging and strengthening in equity. The ratio then increased to 1.27 in 2023 and slightly decreased to 1.26 in 2024, reflecting a moderate rise in leverage following the lowest point in 2022.

In summary, the most prominent trend is the rapid growth in equity during the early years (2020-2022), which substantially reduced leverage as expressed by both reported and adjusted debt to equity ratios. This trend was accompanied by an initial reduction in total debt. Beginning in 2023, both debt and equity decreased moderately; however, leverage ratios rose, indicating a shift towards a slightly higher reliance on debt relative to equity. Despite this increase, leverage remains significantly lower compared to the 2020 levels, suggesting an overall stronger equity position and a more balanced capital structure by the end of the period.

The data reveals notable shifts in the financial leverage and capital structure over the indicated periods. Total debt decreased significantly from 24,654 million US dollars at the end of 2020 to 19,662 million by the end of 2022. This was followed by a rebound to 22,264 million in 2023, then a slight reduction to 21,284 million in 2024. Total capital exhibited a consistent upward trajectory from 25,311 million in 2020 to a peak of 39,570 million in 2023, with a marginal decline to 38,002 million in 2024.

When examining the reported debt to capital ratio, a clear improvement in leverage is observed from an extremely high level of 0.97 in 2020 to a more moderate ratio of 0.50 in 2022, indicating that debt comprised a smaller proportion of total capital. However, this ratio rose again to 0.56 in 2023 and remained stable thereafter in 2024, suggesting a slight increase in leverage relative to total capital during the last two years.

The adjusted total debt, which may include additional liabilities or consider different accounting adjustments, generally mirrors the trend of total debt: a decrease from 27,754 million in 2020 to 23,521 million in 2022, followed by a rise to 26,729 million in 2023 and a decrease to 25,652 million in 2024. Adjusted total capital similarly grew from 28,522 million in 2020 to 47,815 million in 2023, then declined slightly to 46,014 million in 2024.

The adjusted debt to capital ratio echoes the pattern of the reported metric, declining sharply from 0.97 in 2020 to a low of 0.49 in 2022, then increasing to 0.56 by 2023 and remaining stable through 2024. This reflects a reduction in relative debt burden over the first three years, with a subsequent modest increase in leverage sustained in the final two years analyzed.

Overall, the financial data indicates a strategic reduction in leverage between 2020 and 2022, characterized by declining debt levels and increasing capital base. The period from 2023 onward shows a stabilization, with both debt and capital levels relatively steady, and leverage ratios maintaining a consistent level slightly above the lows recorded during 2022. This pattern suggests a deliberate effort to strengthen the capital structure, followed by a period of consolidation.

The analysis of the financial data over the five-year period reveals several notable trends related to the company's asset base, equity levels, and financial leverage.

Total assets

Total assets increased steadily from 62,408 million USD at the end of 2020 to a peak of 71,124 million USD at the end of 2022. Subsequently, total assets declined slightly to 70,857 million USD in 2023 and further to 70,070 million USD in 2024, indicating a minor contraction in asset size after reaching the high in 2022.

Equity for controlling interests

Equity attributable to controlling interests grew substantially from a very low base of 657 million USD in 2020 to 14,253 million USD in 2021, and further to 19,786 million USD in 2022. However, the equity figure decreased in the following years, dropping to 17,306 million USD in 2023 and 16,718 million USD in 2024. This pattern suggests strong growth in equity during the first two years, followed by a moderate decline.

Reported financial leverage

The reported financial leverage ratio showed a dramatic decline from an exceptionally high figure of 94.99 in 2020 to 4.87 in 2021 and then continued to decrease to 3.59 in 2022. After this point, the leverage ratio slightly increased to 4.09 in 2023 and 4.19 in 2024. This indicates a significant reduction in leverage initially, with a minor uptick in leverage in recent years.

Adjusted total assets

The adjusted total assets closely mirror the trend of total assets, rising from 62,019 million USD in 2020 to 71,131 million USD in 2022, then declining moderately to 70,857 million USD in 2023 and 70,094 million USD in 2024. This consistency suggests that adjustments made do not materially affect the overall asset trend.

Adjusted total shareowners’ equity

Adjusted equity increased significantly from 768 million USD in 2020 to 17,346 million USD in 2021, reaching a peak of 24,112 million USD in 2022. Similar to reported equity, adjusted equity decreased afterward to 21,086 million USD in 2023 and further to 20,362 million USD in 2024. The adjusted equity shows a stronger peak and a somewhat less pronounced decline than reported equity, indicating that adjustments may impact the equity valuation.

Adjusted financial leverage

The adjusted financial leverage ratio declined from 80.75 in 2020 to 4.00 in 2021, then further to 2.95 in 2022. In 2023 and 2024, the ratio increased to 3.36 and 3.44, respectively. The trend parallels the reported leverage ratio with a substantial initial decline followed by a modest increase, reflecting changes in the capital structure or asset base adjustments.

In summary, the data depict a company that experienced a marked strengthening of its equity position and a substantial reduction in financial leverage between 2020 and 2022. However, the subsequent two years indicate a modest decline in equity and a slight increase in leverage, suggesting some reversal or stabilization after a period of significant improvement. Asset levels peaked in 2022 and have shown slight decreases thereafter, aligning with the trends in equity and leverage. The adjusted figures generally corroborate the patterns observed in reported data, confirming the reliability of these insights.

The financial data indicates significant variability in both net income and revenue over the five-year period from 2020 to 2024. Net income demonstrated a marked increase from 2020 to 2021, rising from 1,343 million USD to 12,890 million USD, followed by a peak in 2021 and a subsequent declining trend through 2023 and 2024. Despite the decline, net income in 2024 remains substantially higher than in 2020.

Revenue trends reveal steady growth from 2020 through 2022, increasing from 84,628 million USD to 100,338 million USD. However, revenue experienced a downturn in 2023, dropping to 90,958 million USD and showing a very slight increase to 91,070 million USD in 2024, remaining below the 2022 peak.

The reported net profit margin aligns with the net income pattern, with a substantial improvement from 1.59% in 2020 to 13.25% in 2021, followed by a gradual decline to 6.35% by 2024. This suggests that while profitability was significantly enhanced around 2021, efficiency or cost management may have become challenging in subsequent years.

Adjusted net income experienced a similar pattern to reported net income, transitioning from a negative value (-586 million USD) in 2020 to a substantial positive of 18,360 million USD in 2021. After peaking in 2021, adjusted net income declined through 2023, reaching the lowest point of 4,678 million USD, with a modest recovery to 5,226 million USD in 2024.

The adjusted net profit margin reflects these fluctuations, moving from a negative margin of -0.69% in 2020 to a high of 18.87% in 2021. Thereafter, it contracted significantly to 5.14% in 2023, with a slight improvement to 5.74% in 2024. This pattern signals that adjusted profitability was strong in 2021 but faced headwinds in later years, paralleling the trends in reported figures.

In summary, the data suggests that the financial performance peaked around 2021, characterized by growth in revenue and profitability. However, the subsequent years saw declines in both net income and profit margins despite relatively high revenue levels compared to 2020. Adjusted metrics consistently follow reported values, reinforcing the view that 2021 was an exceptional year in terms of profitability, with challenges arising in the following periods that hindered sustained growth in net income and margins.

Net Income

The net income experienced a sharp increase from 1,343 million US dollars in 2020 to a peak of 12,890 million in 2021. Subsequently, it declined steadily over the next three years, reaching 5,782 million in 2024. This indicates significant volatility with a notable peak in 2021 followed by a consistent downward trend.

Equity for Controlling Interests

Equity for controlling interests rose dramatically from 657 million in 2020 to 14,253 million in 2021 and continued to increase to 19,786 million in 2022. After that, it decreased moderately to 17,306 million in 2023 and further to 16,718 million in 2024, reflecting some reduction in equity after initial expansion.

Reported Return on Equity (ROE)

The reported ROE was exceptionally high at 204.41% in 2020, then dropped progressively to 90.44% in 2021, 58.36% in 2022, 38.76% in 2023, and 34.59% in 2024. This trend represents a substantial decline in profitability relative to equity, though returns remained strong in absolute terms.

Adjusted Net Income

The adjusted net income started negatively at -586 million in 2020, then surged to a peak of 18,360 million in 2021. After that, it fell to 13,826 million in 2022 and continued down to 4,678 million in 2023 but slightly increased to 5,226 million in 2024. This pattern is generally consistent with net income but shows somewhat more fluctuation and a modest recovery in the most recent year.

Adjusted Total Shareowners’ Equity

Adjusted total shareowners’ equity increased from 768 million in 2020 to 17,346 million in 2021 and further to 24,112 million in 2022. Following this, it declined to 21,086 million in 2023 and 20,362 million in 2024, showing an initial expansion followed by a gradual decrease.

Adjusted Return on Equity (ROE)

The adjusted ROE was notably negative at -76.3% in 2020 but turned sharply positive to 105.85% in 2021. It then decreased substantially to 57.34% in 2022 and further to 22.19% in 2023. In 2024, there was a slight increase to 25.67%. This indicator suggests initial strong profitability on an adjusted basis after a difficult 2020, with a significant decline in subsequent years but slight recovery in the latest period.

Overall Insights

The data reveals a pattern of strong growth and profitability peaks around 2021, followed by noticeable declines in net income, equity, and profitability ratios through to 2024. Both reported and adjusted figures show this trend. Although there is some stabilization and minor recovery in adjusted net income and adjusted ROE in 2024, overall profitability and equity measures have declined from their highs. The sharp contrasts between 2020 and 2021 suggest a year of exceptional performance or one-time events contributing to high earnings and equity growth, not fully sustained in subsequent years.

Net Income Trend

Net income exhibited significant volatility from 2020 through 2024. Beginning at 1,343 million USD in 2020, it sharply increased to a peak of 12,890 million USD in 2021, followed by a gradual decline over the subsequent years to 5,782 million USD by 2024. This indicates a strong performance in 2021 that was not sustained in later years.

Total Assets

Total assets increased moderately from 62,408 million USD in 2020 to a high of 71,124 million USD in 2022, then slightly decreased through 2024 to 70,070 million USD. Overall, asset levels remained relatively stable after the initial growth phase.

Reported Return on Assets (ROA)

The reported ROA followed a pattern consistent with net income trends, rising sharply from 2.15% in 2020 to a peak of 18.57% in 2021, then declining to 8.25% by 2024. This decline suggests decreasing profitability relative to asset base after 2021.

Adjusted Net Income

Adjusted net income showed considerable fluctuations. It started negative at -586 million USD in 2020, surged to 18,360 million USD in 2021, before declining to 5,226 million USD by 2024. The negative figure in 2020 implies significant one-time or extraordinary adjustments, with subsequent years showing more normalized profitability albeit with a declining trend post-2021.

Adjusted Total Assets

The adjusted total assets mirrored the reported total assets closely, increasing from 62,019 million USD in 2020 to a peak of 71,131 million USD in 2022, then slightly decreasing to 70,094 million USD in 2024. This stability aligns with the reported asset trends.

Adjusted Return on Assets (ROA)

Adjusted ROA demonstrated a dramatic improvement from -0.94% in 2020 to 26.47% in 2021, followed by a decline to 7.46% in 2024. This pattern reflects improved operational performance after adjustments in 2021 but shows decreasing efficiency in asset utilization in the subsequent years.