Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Analysis of Geographic Areas 

Microsoft Excel

Area Asset Turnover

United Parcel Service Inc., asset turnover by geographic area

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
United States 2.12 2.15 2.44 2.51 2.35
International 1.55 1.40 1.71 2.06 1.77

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).


United States Asset Turnover
The asset turnover ratio in the United States experienced a moderate increase from 2.35 in 2020 to 2.51 in 2021, indicating improved efficiency in using assets to generate revenue. However, a downward trend followed in subsequent years, with the ratio declining to 2.44 in 2022, further dropping to 2.15 in 2023, and then slightly decreasing again to 2.12 in 2024. This overall decline after 2021 suggests a reduction in asset utilization efficiency within the domestic segment over the recent years.
International Asset Turnover
The international asset turnover ratio initially rose from 1.77 in 2020 to 2.06 in 2021, demonstrating enhanced asset efficiency overseas. Nonetheless, a notable decrease occurred in 2022, bringing the ratio down to 1.71, followed by a continued decline to 1.40 in 2023. In 2024, there was a slight recovery to 1.55. Despite this partial rebound, the international segment's asset turnover remains below the peak seen in 2021, indicating challenges in maintaining asset efficiency abroad.
Comparative Insights
Comparatively, the United States consistently outperformed the international segment in asset turnover throughout the entire period. Both regions reached their highest efficiencies in 2021, followed by declines that reflect potential operational or market difficulties impacting asset utilization. The more pronounced fluctuations in the international ratio point to greater volatility in the efficiency of foreign operations. The modest recovery in 2024 for the international area may indicate initial efforts or conditions improving asset use, although levels remain subdued relative to earlier peaks.

Area Asset Turnover: United States

United Parcel Service Inc.; United States; area asset turnover calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenue 70,389 71,749 78,110 74,376 66,580
Long-lived assets 33,173 33,301 32,002 29,609 28,354
Area Activity Ratio
Area asset turnover1 2.12 2.15 2.44 2.51 2.35

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).

1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 70,389 ÷ 33,173 = 2.12


Revenue
Revenue in the United States geographic area exhibited an overall upward trend from 2020 to 2022, increasing from 66,580 million US dollars in 2020 to a peak of 78,110 million US dollars in 2022. However, a decline was observed in the subsequent years, with revenue decreasing to 71,749 million US dollars in 2023 and further slightly declining to 70,389 million US dollars in 2024. This indicates a reversal in revenue growth after 2022.
Long-lived Assets
The value of long-lived assets steadily increased over the five-year period, starting at 28,354 million US dollars in 2020 and rising to 33,173 million US dollars by 2024. The increase was consistent each year, reflecting ongoing investment or capital expenditure in the United States geographic area.
Area Asset Turnover
The area asset turnover ratio, which measures revenue generated per unit of long-lived assets, showed initial improvement from 2.35 in 2020 to 2.51 in 2021. After 2021, this ratio declined consistently each year, reaching 2.44 in 2022, then dropping more markedly to 2.15 in 2023, and further down to 2.12 in 2024. The decreasing trend in this ratio suggests reduced efficiency in the utilization of long-lived assets to generate revenue during the latter part of the period.
Overall Insights
While long-lived assets increased steadily, indicating continued investment, the decline in both revenue after 2022 and area asset turnover ratio after 2021 may point to challenges in translating asset growth into revenue growth efficiently. This combination could reflect external market conditions, operational issues, or other factors affecting revenue generation in the United States geographic area during the most recent years.

Area Asset Turnover: International

United Parcel Service Inc.; International; area asset turnover calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenue 20,681 19,209 22,228 22,911 18,048
Long-lived assets 13,304 13,687 12,991 11,098 10,213
Area Activity Ratio
Area asset turnover1 1.55 1.40 1.71 2.06 1.77

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).

1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 20,681 ÷ 13,304 = 1.55


The analysis of the International geographic area's annual data reveals several key trends over the five-year period ending in 2024. Revenue displayed notable fluctuations, with a strong increase from 18,048 million USD in 2020 to a peak of 22,911 million USD in 2021. In subsequent years, revenue experienced declines to 22,228 million USD in 2022 and further to 19,209 million USD in 2023, before showing partial recovery to 20,681 million USD in 2024. This pattern suggests a period of growth followed by contraction and then stabilization.

Long-lived assets steadily increased over the period from 10,213 million USD in 2020 to 13,687 million USD in 2023, with a slight decrease to 13,304 million USD in 2024. This general upward trend indicates ongoing investment in or accumulation of fixed assets within the international segment, with only a minor reduction in the final year analyzed.

Area asset turnover, which measures revenue generated per unit of long-lived assets, showed variability consistent with revenue and asset trends. The ratio rose from 1.77 in 2020 to a high of 2.06 in 2021, signifying higher efficiency or asset utilization in that year. Thereafter, it declined sharply to 1.71 in 2022 and further down to 1.40 in 2023, indicating reduced asset efficiency. A partial rebound to 1.55 was observed in 2024, aligning with the modest revenue recovery and asset stabilization.

Overall, the data reflects an initial phase of revenue growth and improved asset turnover, followed by a period of declining revenue and asset efficiency despite increasing asset base, and concluding with signs of potential stabilization in the latest year. These trends may highlight challenges in maintaining international market momentum and the importance of optimizing asset utilization to support sustainable growth.

Revenue Trend
Growth from 2020 to 2021, followed by decline in 2022 and 2023, with partial recovery in 2024.
Long-lived Assets Trend
Consistent increase until 2023, slight decline in 2024.
Area Asset Turnover Trend
Peaked in 2021, decreased through 2023, modest improvement in 2024.
Insights
Initial improvement in efficiency and revenue growth gave way to operational challenges indicated by falling turnover and revenue; recent data shows early signs of recovery.

Revenue

United Parcel Service Inc., revenue by geographic area

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
United States 70,389 71,749 78,110 74,376 66,580
International 20,681 19,209 22,228 22,911 18,048
Consolidated 91,070 90,958 100,338 97,287 84,628

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).


United States Revenue
The revenue generated in the United States exhibited an initial upward trend from 66,580 million USD in 2020 to a peak of 78,110 million USD in 2022. Following this peak, there was a decline in 2023 to 71,749 million USD, which continued into 2024 with a marginal decrease to 70,389 million USD. This pattern suggests initial growth followed by a contraction in the most recent years.
International Revenue
International revenue presented considerable growth between 2020 and 2021, increasing from 18,048 million USD to 22,911 million USD. After this peak in 2021, revenue slightly decreased in 2022 to 22,228 million USD and saw a more pronounced reduction in 2023, reaching 19,209 million USD. However, in 2024, there was a partial recovery to 20,681 million USD, indicating some regained momentum in the international segment.
Consolidated Revenue
Consolidated revenue followed a similar trend to that of the United States and international revenues, increasing from 84,628 million USD in 2020 to a peak of 100,338 million USD in 2022. Thereafter, a decline was observed with consolidated revenue dropping to 90,958 million USD in 2023 and leveling off at 91,070 million USD in 2024. This suggests the overall business experienced growth through 2022 but faced some challenges maintaining those levels in subsequent years.
Summary
The data reveal a growth trajectory in both domestic and international revenues until 2022, followed by a downturn in 2023. While the domestic revenue has continued its decline into 2024, international revenue shows signs of modest recovery. Consequently, consolidated revenue mirrors this pattern with a peak in 2022 followed by a contraction and stabilization in 2023 and 2024. These trends may reflect changes in market conditions, operational challenges, or shifting demand across geographic segments.

Long-lived assets

United Parcel Service Inc., long-lived assets by geographic area

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
United States 33,173 33,301 32,002 29,609 28,354
International 13,304 13,687 12,991 11,098 10,213
Consolidated 46,477 46,988 44,993 40,707 38,567

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).


United States Long-lived Assets
The value of long-lived assets in the United States shows a consistent upward trajectory from 2020 to 2023, increasing from $28,354 million to $33,301 million. However, there is a slight decrease in 2024 to $33,173 million, indicating a minor contraction after several years of growth.
International Long-lived Assets
International long-lived assets exhibit a steady increase from 2020 to 2023, rising from $10,213 million to $13,687 million. In 2024, the value slightly declines to $13,304 million, marking a modest reduction following continuous expansion.
Consolidated Long-lived Assets
When consolidating the United States and international assets, the total long-lived assets increase consistently from $38,567 million in 2020 to a peak of $46,988 million in 2023. In 2024, there is a slight decline to $46,477 million. This pattern suggests overall growth with a minor dip in the most recent year evaluated.
Summary Insights
The data reflects robust growth in long-lived assets across both domestic and international segments over the four-year period ending in 2023. The minor decreases in 2024 across all categories may suggest a strategic consolidation, asset revaluation, or early signs of asset reduction. The consistent rise until 2023 indicates investment and expansion, while the 2024 reductions, though slight, warrant attention for potential shifts in asset management strategies.