Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
United Parcel Service Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Current Ratio
- The current ratio demonstrates a generally fluctuating trend over the observed quarters. Beginning at 1.29, it rises steadily, peaking at 1.52 in the first quarter of 2022. Subsequently, the ratio experiences a gradual decline with some minor recoveries, reaching its lowest point around 1.09 in the third quarter of 2025. This indicates a slight weakening in short-term liquidity over the medium term, although the ratio remains above 1.0, suggesting the maintenance of sufficient current assets to cover current liabilities.
- Quick Ratio
- The quick ratio follows a comparable but somewhat more volatile pattern compared to the current ratio. It increases from 1.1 to a high of 1.39 in early 2022 before trending downward to a low near 0.82 by the fourth quarter of 2023. Thereafter, there is a noticeable recovery leading to values above 1.0 in mid-2024 and late 2025. The dip below 1.0 during much of 2023 and early 2024 might imply reduced liquidity when considering only the most liquid assets, although recovery suggests an improvement in this metric subsequently.
- Cash Ratio
- The cash ratio exhibits a declining trend with considerable volatility. It starts at 0.47, reaches a short-term peak of 0.72 in the first quarter of 2022, then falls sharply to 0.18 by the end of 2023. Following this low point, it demonstrates a gradual recovery movement, reaching 0.46 in the third quarter of 2025. This pattern indicates fluctuations in the company's immediate liquidity position with respect to cash and cash equivalents, reflecting potential changes in cash management or operational cash flows.
- Overall Analysis
- Across the examined period, liquidity ratios reveal that while the firm has maintained a generally sufficient level of current assets relative to current liabilities, both quick and cash ratios show periods of constricted liquidity. The current ratio consistently stays above 1.0, implying ongoing capability to cover short-term obligations. However, dips in quick and cash ratios point to reliance on inventory or less liquid assets during certain intervals, particularly in 2023. The partial recovery in quick and cash ratios towards 2024 and 2025 suggests efforts to enhance liquidity position, possibly through improved cash flows or asset management. These fluctuations are normal in the context of operational cycles but warrant monitoring to ensure adequate liquidity.
Current Ratio
United Parcel Service Inc., current ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current assets | 18,985) | 18,850) | 17,090) | 19,310) | 17,264) | 18,823) | 16,177) | 19,413) | 19,251) | 19,439) | 21,725) | 22,217) | 24,598) | 25,571) | 25,601) | 24,934) | 22,843) | 21,988) | 20,985) | ||||||
| Current liabilities | 14,552) | 14,240) | 15,660) | 16,441) | 15,081) | 15,085) | 14,696) | 17,676) | 15,817) | 14,686) | 16,262) | 18,140) | 17,679) | 17,337) | 16,842) | 17,569) | 15,472) | 15,770) | 16,306) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | 1.30 | 1.32 | 1.09 | 1.17 | 1.14 | 1.25 | 1.10 | 1.10 | 1.22 | 1.32 | 1.34 | 1.22 | 1.39 | 1.47 | 1.52 | 1.42 | 1.48 | 1.39 | 1.29 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| FedEx Corp. | 1.24 | 1.23 | 1.28 | 1.36 | 1.31 | 1.34 | 1.37 | 1.37 | 1.32 | 1.30 | 1.42 | 1.43 | 1.39 | 1.49 | 1.51 | 1.51 | 1.60 | 1.76 | 1.69 | ||||||
| Uber Technologies Inc. | 1.15 | 1.11 | 1.02 | 1.07 | 1.41 | 1.21 | 1.21 | 1.19 | 1.14 | 1.23 | 1.06 | 1.04 | 1.04 | 0.98 | 1.00 | 0.98 | 1.19 | 1.01 | 1.14 | ||||||
| Union Pacific Corp. | 0.75 | 0.65 | 0.73 | 0.77 | 0.77 | 1.05 | 0.93 | 0.81 | 0.72 | 0.71 | 0.65 | 0.72 | 0.77 | 0.66 | 0.71 | 0.62 | 0.75 | 0.86 | 0.76 | ||||||
| United Airlines Holdings Inc. | 0.67 | 0.70 | 0.78 | 0.81 | 0.79 | 0.77 | 0.75 | 0.83 | 0.89 | 0.91 | 0.91 | 1.00 | 1.03 | 1.04 | 1.04 | 1.19 | 1.36 | 1.37 | 1.13 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 18,985 ÷ 14,552 = 1.30
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a generally fluctuating trend over the reported periods. Initially, there is a gradual increase from about 20,985 million USD to a peak near 25,571 million USD around mid-2022. This peak is followed by a decline, reaching a low point around 16,177 million USD in early 2024. Subsequently, current assets show some recovery and stabilization, rising back to a range between approximately 17,000 and 19,900 million USD toward the latest periods.
- Current Liabilities
- Current liabilities demonstrate moderate variation, without a consistent upward or downward trend. The figures fluctuate within a range roughly between 14,240 million USD and 18,140 million USD. There is a slight increase during late 2022, peaking at 18,140 million USD, followed by a decrease through 2023 and stabilization near the 14,500 million USD to 16,600 million USD range by the end of the reported periods.
- Current Ratio
- The current ratio, which measures short-term liquidity, initially shows an increasing trend from 1.29 to a high of 1.52 by the first quarter of 2022, indicating improving liquidity positions. Afterward, the ratio declines steadily through late 2022 and 2023 to a low of approximately 1.1 by early 2024, suggesting a weakening in the company's ability to cover short-term obligations with current assets. In the subsequent quarters, the ratio recovers moderately to around 1.3 by mid-2025. Despite this improvement, the current ratio remains relatively modest, indicating only a moderate buffer of current assets over current liabilities across the periods.
- Overall Analysis
- The data suggests a period of strengthened liquidity and asset levels through early to mid-2022, followed by a significant contraction in current assets and liquidity ratios into early 2024. This trend may indicate operational or market challenges impacting the company’s short-term asset base. The relatively stable current liabilities imply the company managed its short-term obligations without major fluctuations. The recovery in current assets and current ratio toward the most recent periods hints at a potential stabilization or improvement in working capital management. However, the current ratio consistently staying close to or just above 1 signifies a cautious liquidity stance, with limited excess current assets relative to current liabilities.
Quick Ratio
United Parcel Service Inc., quick ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash and cash equivalents | 6,764) | 6,194) | 4,802) | 6,112) | 5,855) | 6,319) | 4,281) | 3,206) | 4,311) | 4,812) | 6,190) | 5,602) | 11,045) | 11,735) | 12,208) | 10,255) | 10,212) | 9,608) | 7,731) | ||||||
| Accounts receivable, net | 9,967) | 10,430) | 9,887) | 10,871) | 9,195) | 9,048) | 9,554) | 11,216) | 9,461) | 9,587) | 10,299) | 12,583) | 10,975) | 11,396) | 11,199) | 12,541) | 10,474) | 10,137) | 10,127) | ||||||
| Total quick assets | 16,731) | 16,624) | 14,689) | 16,983) | 15,050) | 15,367) | 13,835) | 14,422) | 13,772) | 14,399) | 16,489) | 18,185) | 22,020) | 23,131) | 23,407) | 22,796) | 20,686) | 19,745) | 17,858) | ||||||
| Current liabilities | 14,552) | 14,240) | 15,660) | 16,441) | 15,081) | 15,085) | 14,696) | 17,676) | 15,817) | 14,686) | 16,262) | 18,140) | 17,679) | 17,337) | 16,842) | 17,569) | 15,472) | 15,770) | 16,306) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | 1.15 | 1.17 | 0.94 | 1.03 | 1.00 | 1.02 | 0.94 | 0.82 | 0.87 | 0.98 | 1.01 | 1.00 | 1.25 | 1.33 | 1.39 | 1.30 | 1.34 | 1.25 | 1.10 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| FedEx Corp. | 1.11 | 1.10 | 1.15 | 1.24 | 1.17 | 1.22 | 1.25 | 1.25 | 1.19 | 1.16 | 1.30 | 1.31 | 1.27 | 1.37 | 1.39 | 1.40 | 1.50 | 1.63 | 1.56 | ||||||
| Uber Technologies Inc. | 1.02 | 0.97 | 0.89 | 0.95 | 1.27 | 1.05 | 1.03 | 1.02 | 0.96 | 1.04 | 0.88 | 0.88 | 0.88 | 0.83 | 0.83 | 0.82 | 1.01 | 0.85 | 0.96 | ||||||
| Union Pacific Corp. | 0.52 | 0.46 | 0.54 | 0.55 | 0.56 | 0.76 | 0.68 | 0.61 | 0.51 | 0.51 | 0.49 | 0.52 | 0.58 | 0.47 | 0.52 | 0.47 | 0.56 | 0.64 | 0.57 | ||||||
| United Airlines Holdings Inc. | 0.58 | 0.62 | 0.68 | 0.71 | 0.69 | 0.68 | 0.66 | 0.73 | 0.78 | 0.83 | 0.82 | 0.91 | 0.94 | 0.95 | 0.95 | 1.10 | 1.25 | 1.27 | 1.01 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 16,731 ÷ 14,552 = 1.15
2 Click competitor name to see calculations.
The financial data indicates fluctuations in liquidity over the observed periods, as reflected by the interplay between total quick assets and current liabilities, as well as the quick ratio.
- Total Quick Assets
- Total quick assets exhibit an initial upward trend from March 2021 through December 2021, rising from approximately 17.9 billion to nearly 22.8 billion US dollars. This is followed by a decline reaching a low point around December 2022 at about 18.2 billion US dollars. Subsequently, there is a mixed pattern where quick assets decrease again through the first three quarters of 2023 before gradually recovering toward the end of 2024 and stabilizing around 16.7 billion US dollars by September 2025. This trend suggests some variability in highly liquid assets, with notable reductions during 2022 and early 2023, followed by a partial recovery.
- Current Liabilities
- Current liabilities demonstrate a moderate upward trend from 16.3 billion US dollars in March 2021 to a peak near 18.1 billion in December 2022. This rising trend in liabilities contrasts with the decrease in quick assets seen in the same timeframe, indicating tightening liquidity conditions. In 2023, liabilities decline to approximately 14.7 billion US dollars by June, but increase again toward the end of the year and into 2024, fluctuating between 14.7 billion and 16.4 billion US dollars. Late 2024 and early 2025 show relatively stable liabilities around 14.6 to 15.6 billion US dollars. Overall, the variation in current liabilities appears less volatile than quick assets but does not indicate a consistent reduction trend.
- Quick Ratio
- The quick ratio trends align with the movements in quick assets and current liabilities, indicating fluctuations in short-term liquidity strength. Beginning at 1.10 in March 2021, the ratio improves gradually to a high of 1.39 by March 2022, reflecting stronger liquidity during this period. Subsequently, the ratio declines steadily through 2022 and into 2023, dropping below 1.0 in mid-2023 and reaching a low of approximately 0.82 by December 2023. This suggests that quick assets were insufficient to cover current liabilities during this period. A recovery begins in early 2024, with the ratio rising back above 1.0 by mid-2024 and maintaining a level slightly above or below 1.0 through 2025, ending near 1.15. This pattern indicates a restoration of short-term liquidity strength after the mid-2023 trough.
In summary, the financial data depict a period of strengthening liquidity through early 2022, followed by a decline in quick assets and a deterioration in the quick ratio throughout late 2022 and 2023, implying tighter liquidity conditions. However, the trend reverses starting in early 2024, with a gradual improvement in the quick ratio and stabilization of quick assets relative to current liabilities. This suggests a recovery in the company’s capacity to meet short-term obligations using its most liquid assets toward the later periods analyzed.
Cash Ratio
United Parcel Service Inc., cash ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash and cash equivalents | 6,764) | 6,194) | 4,802) | 6,112) | 5,855) | 6,319) | 4,281) | 3,206) | 4,311) | 4,812) | 6,190) | 5,602) | 11,045) | 11,735) | 12,208) | 10,255) | 10,212) | 9,608) | 7,731) | ||||||
| Total cash assets | 6,764) | 6,194) | 4,802) | 6,112) | 5,855) | 6,319) | 4,281) | 3,206) | 4,311) | 4,812) | 6,190) | 5,602) | 11,045) | 11,735) | 12,208) | 10,255) | 10,212) | 9,608) | 7,731) | ||||||
| Current liabilities | 14,552) | 14,240) | 15,660) | 16,441) | 15,081) | 15,085) | 14,696) | 17,676) | 15,817) | 14,686) | 16,262) | 18,140) | 17,679) | 17,337) | 16,842) | 17,569) | 15,472) | 15,770) | 16,306) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | 0.46 | 0.43 | 0.31 | 0.37 | 0.39 | 0.42 | 0.29 | 0.18 | 0.27 | 0.33 | 0.38 | 0.31 | 0.62 | 0.68 | 0.72 | 0.58 | 0.66 | 0.61 | 0.47 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| FedEx Corp. | 0.37 | 0.35 | 0.42 | 0.49 | 0.42 | 0.47 | 0.51 | 0.50 | 0.40 | 0.33 | 0.50 | 0.48 | 0.43 | 0.49 | 0.53 | 0.52 | 0.65 | 0.69 | 0.62 | ||||||
| Uber Technologies Inc. | 0.73 | 0.67 | 0.60 | 0.66 | 0.92 | 0.69 | 0.66 | 0.66 | 0.64 | 0.75 | 0.58 | 0.56 | 0.61 | 0.55 | 0.55 | 0.55 | 0.85 | 0.69 | 0.81 | ||||||
| Union Pacific Corp. | 0.15 | 0.16 | 0.23 | 0.19 | 0.18 | 0.27 | 0.20 | 0.21 | 0.14 | 0.16 | 0.17 | 0.18 | 0.22 | 0.13 | 0.17 | 0.17 | 0.23 | 0.26 | 0.24 | ||||||
| United Airlines Holdings Inc. | 0.49 | 0.54 | 0.59 | 0.62 | 0.61 | 0.59 | 0.57 | 0.65 | 0.69 | 0.75 | 0.73 | 0.82 | 0.85 | 0.86 | 0.86 | 1.01 | 1.15 | 1.17 | 0.92 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,764 ÷ 14,552 = 0.46
2 Click competitor name to see calculations.
The analysis of the quarterly financial indicators reveals distinct trends in liquidity and working capital management over the observed periods.
- Total Cash Assets
- There is an overall volatility in total cash assets across the quarters. Starting from $7,731 million at the end of March 2021, cash assets generally increased, peaking at $12,208 million by March 2022. Following this high point, the cash holdings experienced a notable decline, dropping sharply to $5,602 million by December 2022. Subsequently, the values fluctuated within a moderate range between approximately $3,200 million and $6,300 million in 2023 and 2024. Towards the end of the data period, cash assets show recovery with an increase up to $6,764 million by September 2025. This pattern indicates periods of strong liquidity injections followed by significant drawdowns and partial recoveries.
- Current Liabilities
- Current liabilities have displayed less volatility than cash assets but still show meaningful fluctuations. Beginning at $16,306 million in the first quarter of 2021, the liabilities slightly decreased to $15,472 million in the third quarter of 2021 before rising steadily to a peak of $18,140 million at the end of 2022. The subsequent quarters show alternating decreases and increases, with a trend towards stabilization in the $14,000 million to $16,000 million range from early 2023 through 2025. The movements suggest variations in short-term obligations but no extreme spikes or declines outside this range.
- Cash Ratio
- The cash ratio depicts the company's capacity to cover current liabilities with cash assets, revealing a declining trend over the reported period. Starting with a moderate ratio of 0.47 in March 2021, the ratio improved to its highest level of 0.72 in March 2022, coinciding with peak cash assets. After this peak, a progressive decrease is observed, plunging to a low of 0.18 in December 2023, which reflects a period where cash assets became a smaller fraction of current liabilities. Although there is a slight recovery afterward, with ratios moving back towards 0.46 by September 2025, the overall trend indicates reduced liquidity coverage against short-term debts over time.
In summary, the financial data suggest that the company experienced fluctuations in cash holdings, encountering a period of strong liquidity around early 2022 followed by a significant drawdown through 2023. Current liabilities remained relatively stable within a defined range, without extreme changes. The declining cash ratio highlights increased pressure on immediate liquidity to meet short-term obligations, potentially signaling a more conservative cash management or changes in operational cash flows during the most recent periods.