Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

United Parcel Service Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 1.28 1.41 1.40 1.36 1.28
Adjusted 1.28 1.41 1.40 1.36 1.29
Liquidity Ratio
Current Ratio
Reported 1.10 1.22 1.42 1.19 1.11
Adjusted 1.11 1.23 1.43 1.20 1.12
Solvency Ratios
Debt to Equity
Reported 1.29 0.99 1.54 37.53 7.73
Adjusted 1.27 0.98 1.47 36.14 6.02
Debt to Capital
Reported 0.56 0.50 0.61 0.97 0.89
Adjusted 0.56 0.49 0.60 0.97 0.86
Financial Leverage
Reported 4.09 3.59 4.87 94.99 17.71
Adjusted 3.36 2.95 4.00 80.75 12.32
Profitability Ratios
Net Profit Margin
Reported 7.37% 11.51% 13.25% 1.59% 5.99%
Adjusted 5.14% 13.78% 18.87% -0.69% 4.77%
Return on Equity (ROE)
Reported 38.76% 58.36% 90.44% 204.41% 135.90%
Adjusted 22.19% 57.34% 105.85% -76.30% 75.59%
Return on Assets (ROA)
Reported 9.47% 16.24% 18.57% 2.15% 7.67%
Adjusted 6.60% 19.44% 26.47% -0.94% 6.14%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. United Parcel Service Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. United Parcel Service Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. United Parcel Service Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. United Parcel Service Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 United Parcel Service Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. United Parcel Service Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. United Parcel Service Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. United Parcel Service Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

United Parcel Service Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Revenue 90,958 100,338 97,287 84,628 74,094
Total assets 70,857 71,124 69,405 62,408 57,857
Activity Ratio
Total asset turnover1 1.28 1.41 1.40 1.36 1.28
Adjusted
Selected Financial Data (US$ in millions)
Revenue 90,958 100,338 97,287 84,628 74,094
Adjusted total assets2 70,857 71,131 69,357 62,019 57,620
Activity Ratio
Adjusted total asset turnover3 1.28 1.41 1.40 1.36 1.29

Based on: 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).

1 2023 Calculation
Total asset turnover = Revenue ÷ Total assets
= 90,958 ÷ 70,857 = 1.28

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 90,958 ÷ 70,857 = 1.28

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. United Parcel Service Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 19,413 22,217 24,934 20,216 17,103
Current liabilities 17,676 18,140 17,569 17,016 15,413
Liquidity Ratio
Current ratio1 1.10 1.22 1.42 1.19 1.11
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 19,539 22,363 25,062 20,354 17,196
Current liabilities 17,676 18,140 17,569 17,016 15,413
Liquidity Ratio
Adjusted current ratio3 1.11 1.23 1.43 1.20 1.12

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,413 ÷ 17,676 = 1.10

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 19,539 ÷ 17,676 = 1.11

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. United Parcel Service Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 22,264 19,662 21,915 24,654 25,238
Equity for controlling interests 17,306 19,786 14,253 657 3,267
Solvency Ratio
Debt to equity1 1.29 0.99 1.54 37.53 7.73
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 26,729 23,521 25,528 27,754 28,167
Adjusted total shareowners’ equity3 21,086 24,112 17,346 768 4,678
Solvency Ratio
Adjusted debt to equity4 1.27 0.98 1.47 36.14 6.02

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Equity for controlling interests
= 22,264 ÷ 17,306 = 1.29

2 Adjusted total debt. See details »

3 Adjusted total shareowners’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total shareowners’ equity
= 26,729 ÷ 21,086 = 1.27

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. United Parcel Service Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 22,264 19,662 21,915 24,654 25,238
Total capital 39,570 39,448 36,168 25,311 28,505
Solvency Ratio
Debt to capital1 0.56 0.50 0.61 0.97 0.89
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 26,729 23,521 25,528 27,754 28,167
Adjusted total capital3 47,815 47,633 42,874 28,522 32,845
Solvency Ratio
Adjusted debt to capital4 0.56 0.49 0.60 0.97 0.86

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 22,264 ÷ 39,570 = 0.56

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 26,729 ÷ 47,815 = 0.56

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. United Parcel Service Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 70,857 71,124 69,405 62,408 57,857
Equity for controlling interests 17,306 19,786 14,253 657 3,267
Solvency Ratio
Financial leverage1 4.09 3.59 4.87 94.99 17.71
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 70,857 71,131 69,357 62,019 57,620
Adjusted total shareowners’ equity3 21,086 24,112 17,346 768 4,678
Solvency Ratio
Adjusted financial leverage4 3.36 2.95 4.00 80.75 12.32

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Equity for controlling interests
= 70,857 ÷ 17,306 = 4.09

2 Adjusted total assets. See details »

3 Adjusted total shareowners’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total shareowners’ equity
= 70,857 ÷ 21,086 = 3.36

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 United Parcel Service Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 6,708 11,548 12,890 1,343 4,440
Revenue 90,958 100,338 97,287 84,628 74,094
Profitability Ratio
Net profit margin1 7.37% 11.51% 13.25% 1.59% 5.99%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,678 13,826 18,360 (586) 3,536
Revenue 90,958 100,338 97,287 84,628 74,094
Profitability Ratio
Adjusted net profit margin3 5.14% 13.78% 18.87% -0.69% 4.77%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 6,708 ÷ 90,958 = 7.37%

2 Adjusted net income. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 4,678 ÷ 90,958 = 5.14%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. United Parcel Service Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 6,708 11,548 12,890 1,343 4,440
Equity for controlling interests 17,306 19,786 14,253 657 3,267
Profitability Ratio
ROE1 38.76% 58.36% 90.44% 204.41% 135.90%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,678 13,826 18,360 (586) 3,536
Adjusted total shareowners’ equity3 21,086 24,112 17,346 768 4,678
Profitability Ratio
Adjusted ROE4 22.19% 57.34% 105.85% -76.30% 75.59%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income ÷ Equity for controlling interests
= 100 × 6,708 ÷ 17,306 = 38.76%

2 Adjusted net income. See details »

3 Adjusted total shareowners’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total shareowners’ equity
= 100 × 4,678 ÷ 21,086 = 22.19%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. United Parcel Service Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 6,708 11,548 12,890 1,343 4,440
Total assets 70,857 71,124 69,405 62,408 57,857
Profitability Ratio
ROA1 9.47% 16.24% 18.57% 2.15% 7.67%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,678 13,826 18,360 (586) 3,536
Adjusted total assets3 70,857 71,131 69,357 62,019 57,620
Profitability Ratio
Adjusted ROA4 6.60% 19.44% 26.47% -0.94% 6.14%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 6,708 ÷ 70,857 = 9.47%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 4,678 ÷ 70,857 = 6.60%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. United Parcel Service Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.