Analysis of Geographic Areas
United Parcel Service Inc. operates in 2 regions: United States and International.
Area Asset Turnover
United Parcel Service Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 2.00 | 2.12 | 2.15 | 2.44 | 2.51 |
| International | 1.34 | 1.55 | 1.40 | 1.71 | 2.06 |
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).
Asset turnover decreased across both geographic areas examined between 2021 and 2025. The United States experienced a more gradual decline than the International segment, though both exhibited consistent decreases in efficiency of asset utilization. The International segment’s asset turnover consistently remained lower than that of the United States throughout the period.
- United States Asset Turnover
- The United States asset turnover ratio decreased from 2.51 in 2021 to 2.00 in 2025. The largest decrease occurred between 2021 and 2022, falling to 2.44. Subsequent declines were smaller, with the ratio reaching 2.15 in 2023, 2.12 in 2024, and finally 2.00 in 2025. This indicates a steady, though decelerating, reduction in sales generated per dollar of assets in the United States.
- International Asset Turnover
- The International asset turnover ratio demonstrated a more pronounced decline, moving from 2.06 in 2021 to 1.34 in 2025. A significant drop was observed between 2021 and 2022, decreasing to 1.71. The ratio continued to fall to 1.40 in 2023 before a slight increase to 1.55 in 2024, followed by a further decrease to 1.34 in 2025. This suggests a weakening ability to generate sales from assets held within the International segment.
- Comparative Analysis
- Throughout the examined period, the United States consistently exhibited a higher asset turnover ratio than the International segment. The difference between the two segments widened between 2021 and 2025, starting at a 0.45 differential and increasing to 0.66. This suggests that assets in the International segment are being utilized less efficiently to generate revenue compared to those in the United States.
The observed declines in asset turnover for both areas warrant further investigation to determine the underlying causes. Potential factors could include increased investment in assets without corresponding revenue growth, decreased sales volume, or changes in asset composition.
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Area Asset Turnover: United States
United Parcel Service Inc.; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 67,432) | 70,389) | 71,749) | 78,110) | 74,376) |
| Long-lived assets | 33,760) | 33,173) | 33,301) | 32,002) | 29,609) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 2.00 | 2.12 | 2.15 | 2.44 | 2.51 |
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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 67,432 ÷ 33,760 = 2.00
Analysis of the provided financial information reveals a declining trend in area asset turnover for the United States segment between 2021 and 2025. While revenue experienced initial growth, it subsequently decreased, and the level of long-lived assets remained relatively stable, contributing to the observed turnover decline.
- Revenue
- Revenue increased from US$74,376 million in 2021 to US$78,110 million in 2022, representing a growth of approximately 5.0%. However, revenue then decreased to US$71,749 million in 2023, and continued to decline to US$70,389 million in 2024 and US$67,432 million in 2025. This indicates a weakening revenue performance in the latter part of the analyzed period.
- Long-Lived Assets
- Long-lived assets increased from US$29,609 million in 2021 to US$32,002 million in 2022, and further to US$33,301 million in 2023. The asset base remained relatively consistent between 2023 and 2024 at US$33,173 million, with a slight increase to US$33,760 million in 2025. The relative stability in long-lived assets suggests that changes in asset turnover are primarily driven by revenue fluctuations.
- Area Asset Turnover
- The area asset turnover ratio decreased consistently over the five-year period. Starting at 2.51 in 2021, it declined to 2.44 in 2022, then to 2.15 in 2023, 2.12 in 2024, and finally to 2.00 in 2025. This indicates a diminishing efficiency in generating revenue from the long-lived asset base within the United States area. The decreasing ratio, coupled with declining revenue and stable assets, suggests a potential need to evaluate asset utilization strategies or investigate factors impacting revenue generation.
The consistent decline in area asset turnover warrants further investigation to determine the underlying causes and potential mitigation strategies. The observed trend suggests a decreasing ability to generate sales from the existing asset base, which could impact overall profitability and return on assets.
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Area Asset Turnover: International
United Parcel Service Inc.; International; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 21,229) | 20,681) | 19,209) | 22,228) | 22,911) |
| Long-lived assets | 15,861) | 13,304) | 13,687) | 12,991) | 11,098) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.34 | 1.55 | 1.40 | 1.71 | 2.06 |
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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 21,229 ÷ 15,861 = 1.34
The financial performance of the international segment reveals a fluctuating asset turnover ratio alongside changes in revenue and long-lived assets over the five-year period. Revenue experienced a decline from 2021 to 2023, followed by increases in 2024 and 2025, but did not return to the 2021 level. Long-lived assets consistently increased throughout the period, with the most substantial rise occurring between 2024 and 2025.
- Revenue Trend
- Revenue decreased from US$22,911 million in 2021 to US$19,209 million in 2023, representing a contraction of approximately 16%. A subsequent recovery was observed, with revenue reaching US$20,681 million in 2024 and further increasing to US$21,229 million in 2025. However, revenue in 2025 remained below the 2021 peak.
- Long-Lived Assets Trend
- Long-lived assets exhibited a consistent upward trend, increasing from US$11,098 million in 2021 to US$15,861 million in 2025. The increase was relatively moderate from 2021 to 2023, but accelerated between 2023 and 2025, suggesting increased investment in the international segment’s fixed assets.
- Area Asset Turnover
- The area asset turnover ratio decreased from 2.06 in 2021 to 1.34 in 2025. This indicates a diminishing efficiency in generating revenue from long-lived assets. The ratio experienced its most significant decline between 2021 and 2023, coinciding with the revenue decrease and initial asset increases. A slight recovery to 1.55 was noted in 2024, but this improvement was not sustained, with the ratio falling further in 2025 despite revenue growth. The decreasing trend suggests that the company is becoming less effective at utilizing its assets to generate sales within the international segment.
The combination of increasing long-lived assets and a declining asset turnover ratio suggests potential inefficiencies in asset utilization. While revenue has begun to recover, the rate of asset growth has outpaced revenue growth, contributing to the lower turnover. Further investigation may be warranted to understand the drivers behind the asset increases and to identify opportunities to improve asset efficiency.
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Revenue
United Parcel Service Inc., revenue by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 67,432) | 70,389) | 71,749) | 78,110) | 74,376) |
| International | 21,229) | 20,681) | 19,209) | 22,228) | 22,911) |
| Consolidated | 88,661) | 91,070) | 90,958) | 100,338) | 97,287) |
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).
Revenue performance exhibits distinct trends across geographic areas over the five-year period. Consolidated revenue initially increased before declining, while the United States and International segments demonstrate differing patterns.
- United States Revenue
- Revenue from the United States experienced growth from 2021 to 2022, increasing from US$74,376 million to US$78,110 million. However, a subsequent downward trend is observed, with revenue decreasing to US$71,749 million in 2023, US$70,389 million in 2024, and further declining to US$67,432 million in 2025. This represents a cumulative decrease of approximately 10.3% from the peak in 2022 to 2025.
- International Revenue
- International revenue showed a slight decrease from US$22,911 million in 2021 to US$22,228 million in 2022. A more pronounced decline occurred in 2023, falling to US$19,209 million. Revenue partially recovered in 2024, reaching US$20,681 million, and continued to increase in 2025 to US$21,229 million. Despite the recovery, the 2025 figure remains below the 2021 level.
- Consolidated Revenue
- Consolidated revenue increased from US$97,287 million in 2021 to US$100,338 million in 2022. Following this peak, a decline is evident, with revenue decreasing to US$90,958 million in 2023. Revenue remained relatively stable in 2024 at US$91,070 million before decreasing again to US$88,661 million in 2025. The overall trend indicates a decrease of approximately 8.6% from the 2022 peak to 2025.
- Relative Contribution
- The United States consistently represents the largest portion of consolidated revenue throughout the period. In 2021, it accounted for approximately 76.4% of total revenue, increasing to 77.8% in 2022. Despite the subsequent decline in US revenue, it still contributed approximately 78.5% of consolidated revenue in 2025. The International segment’s contribution remained relatively stable, ranging from approximately 23.6% to 24.0% of consolidated revenue over the five-year period.
The observed trends suggest a weakening performance in the United States segment, while the International segment demonstrates some resilience with a partial recovery in later years. The consolidated revenue trend largely mirrors the performance of the United States segment, highlighting its significant influence on overall company revenue.
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Long-lived assets
United Parcel Service Inc., long-lived assets by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 33,760) | 33,173) | 33,301) | 32,002) | 29,609) |
| International | 15,861) | 13,304) | 13,687) | 12,991) | 11,098) |
| Consolidated | 49,621) | 46,477) | 46,988) | 44,993) | 40,707) |
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).
Long-lived assets exhibited consistent growth across all geographic areas examined between 2021 and 2025. However, the rate of growth varied significantly between the United States and International segments, as well as exhibiting some fluctuation year-over-year.
- United States
- Long-lived assets in the United States demonstrated a generally increasing trend over the five-year period, rising from US$29,609 million in 2021 to US$33,760 million in 2025. Growth was most pronounced between 2021 and 2022, with an increase of US$2,393 million. A slight decrease was observed between 2022 and 2023, followed by a minor decline between 2023 and 2024, before resuming growth in 2025.
- International
- The International segment experienced more substantial percentage growth in long-lived assets compared to the United States. Starting at US$11,098 million in 2021, assets increased to US$15,861 million in 2025. The largest year-over-year increase occurred between 2022 and 2023, with an addition of US$696 million. A decrease was noted between 2023 and 2024, but the segment rebounded strongly in 2025.
- Consolidated
- Consolidated long-lived assets mirrored the growth observed in both segments, increasing from US$40,707 million in 2021 to US$49,621 million in 2025. The rate of consolidated growth slowed somewhat between 2023 and 2024, but the overall trend remained positive. The largest consolidated increase occurred between 2021 and 2022, adding US$4,286 million in assets.
- Comparative Growth
- While both segments experienced growth, the International segment demonstrated a higher relative growth rate over the period. This suggests a greater investment in long-lived assets within international operations, potentially reflecting expansion initiatives or strategic priorities in those markets. The consolidated figures indicate that the International segment’s growth contributed significantly to the overall increase in long-lived assets.
The fluctuations observed in both the United States and International segments between consecutive years warrant further investigation to understand the underlying drivers, such as capital expenditure patterns, asset disposals, or changes in accounting policies.
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