United Parcel Service Inc. (NYSE:UPS)

Debt to Equity

The debt to equity ratio experienced a sharp spike at the end of 2020, reaching 37.53, before a significant decline to a more stable range between 0.99 and 1.57 from 2022 onwards. The values slightly increased in the last few quarters up to 1.57.

Debt to Equity (Including Operating Lease Liability)

This metric followed a trend parallel to the standard debt to equity ratio, peaking at 42.24 at the end of 2020 and then stabilizing around lower values from 2022. The inclusion of operating lease liabilities raised the ratio modestly, increasing slightly towards the end of the period, finishing at 1.84.

Debt to Capital

There was a gradual decline in debt to capital from 0.90 in early 2020 to a low of 0.50 by the end of 2022. Subsequently, the ratio showed a mild upward tendency, stabilizing around 0.56 to 0.61 in the most recent quarters.

Debt to Capital (Including Operating Lease Liability)

The inclusion of operating lease liabilities resulted in a slightly higher ratio throughout the observed period. It exhibited a similar pattern with a decrease until the end of 2022, followed by a gentle increase reaching 0.65 by the last reported quarter.

Debt to Assets

This ratio steadily decreased from 0.47 in early 2020 to about 0.28 by late 2022, signaling lower leverage against assets. From 2023 onwards, it fluctuated modestly, ending up at 0.35 in the final quarter, indicating a slight increase in leverage relative to assets.

Debt to Assets (Including Operating Lease Liability)

Including operating lease liabilities, this ratio showed higher values than the standard debt to assets ratio, exhibiting a similar declining trend until late 2022 and then a modest rise, finishing at 0.41 by the last quarter.

Financial Leverage

Financial leverage was highly elevated at the end of 2020, peaking at 94.99, before a rapid decline to a lower and more stable range near 3.59-4.50 from 2022 onwards. A slight upward trend was observed toward the end of the period, ending at 4.50.

Interest Coverage

Available from late 2020, interest coverage started at 3.63 and improved significantly to a peak of 24.91 in late 2021, demonstrating greatly enhanced ability to service interest expenses. After this peak, the ratio gradually declined but remained healthy above 8.86 by the end of 2025, indicating sustained strong interest coverage.

Overall, the data reflects a period of extraordinary leverage and volatility around the end of 2020, followed by a return to more normalized and stable financial ratios in subsequent quarters. The consistent improvement in interest coverage post-2020 suggests enhanced profitability or operational efficiency. Slight recent upticks in leverage ratios may warrant monitoring, but leverage levels remain moderate and manageable compared to the exceptional previous peak values.

The analysis of the financial trends over the reported periods reveals several notable patterns concerning the company’s leverage and capital structure.

Total Debt (US$ in millions)

Total debt demonstrates a general downward trend from March 31, 2020, beginning at $28,601 million and declining steadily to reach the lowest points around the end of 2022, with values near $19,662 million. However, from early 2023 onwards, debt levels fluctuate, showing an increase again by mid-2025 to $24,740 million. This suggests an initial focus on debt reduction during 2020-2022, followed by a partial reversal or increased borrowing in the subsequent periods.

Equity for Controlling Interests (US$ in millions)

Equity capital for controlling interests grows substantially from March 31, 2020, starting at $3,299 million and increasing consistently until the end of 2022 reaching $19,786 million. After this peak, equity slightly declines and stabilizes in the range of approximately $15,600 to $20,000 million through mid-2025. This overall expansion in equity capital during the initial periods indicates strengthening ownership value, followed by moderate contraction or rebalancing in later periods.

Debt to Equity Ratio (ratio)

The debt to equity ratio displays significant volatility, starting at an extreme high of 8.67 in March 2020 and then sharply dropping to around 1.0 by the end of 2022. This reduction reflects the combined effects of the decrease in total debt and increase in equity capital, indicating improved financial leverage and reduced financial risk. From 2023 through mid-2025, the ratio fluctuates between approximately 1.0 and 1.6, suggesting a return to moderately higher leverage but well below the peak levels observed at the beginning of the period.

Overall, the data indicate a period of significant deleveraging and capital strengthening between 2020 and 2022, followed by a phase of relative stabilization and moderate increases in leverage ratios. The company appeared to have prioritized reducing its debt burden and enhancing equity value initially, thereby improving its financial stability. Recent trends show a balanced approach with some increase in borrowing alongside maintained equity levels, potentially reflecting strategic financing activities or investment needs.

The analysis of financial data reveals several notable trends and changes in the periods from March 31, 2020, through June 30, 2025.

Total debt (including operating lease liability)

The total debt level shows an overall declining trend from March 31, 2020, starting at approximately $31.6 billion, to a low point near $23.5 billion by December 31, 2022. After this decrease, debt levels display some fluctuations, rising again to about $28.9 billion by June 30, 2025. This indicates a reduction in debt obligations during the earlier periods, followed by a moderate increase in more recent quarters.

Equity for controlling interests

Equity demonstrates a consistent upward trend from around $3.3 billion in March 2020 to a peak of nearly $20.0 billion by March 2023. After this peak, equity decreases gradually to approximately $15.7 billion by June 2025. The initial strong growth in equity could indicate improvements in retained earnings or capital contributions, while the subsequent decline suggests potential distributions, share repurchases, or other factors reducing equity.

Debt to equity ratio (including operating lease liability)

The debt-to-equity ratio experiences significant volatility early in the timeline, reaching an unusually high value of 42.24 in December 2020, driven likely by a substantial drop in equity for that period. Following this anomaly, the ratio stabilizes considerably and trends downward, reaching its lowest levels around 1.19 by December 2022. Subsequently, it shows a gradual increase again, ending at 1.84 by June 2025. The more stable ratio after 2020 suggests a balanced approach between leveraging debt and equity, though the rising trend in later years indicates a modest increase in leverage.

Overall, the financial data indicates that debt levels were actively reduced in the early part of the period while equity expanded significantly, improving the company's capital structure. However, recent years show signs of increased leverage alongside a moderate contraction in equity, reflecting possible shifts in financing strategy or market conditions impacting financial policy.

Total Debt

The total debt exhibited a generally declining trend from March 31, 2020, through December 31, 2022, decreasing from $28,601 million to $19,662 million. This represents a significant reduction in debt levels over nearly three years. However, starting in March 31, 2023, there was a reversal with total debt increasing to $22,188 million, followed by fluctuations around the $20,000 to $22,000 million range through March 31, 2025, with a notable spike at June 30, 2025, reaching $24,740 million. The initial downward trend suggests a deleveraging phase, while the later increases indicate renewed borrowing or financing activity.

Total Capital

Total capital showed a mixed pattern with some volatility over the reported periods. Beginning at $31,900 million on March 31, 2020, it experienced a dip to $25,311 million by December 31, 2020, before recovering and reaching a peak of $42,226 million as of March 31, 2023. Following this peak, total capital generally declined, ending at $40,490 million by June 30, 2025. The fluctuations indicate possible changes in equity financing, retained earnings, or borrowings impacting the company's overall capital structure. The upward movement until early 2023 suggests capital expansion, whereas subsequent decreases indicate some capital reduction or adjustments.

Debt to Capital Ratio

The debt to capital ratio exhibited a pronounced decline from 0.90 on March 31, 2020, to a low point of 0.50 by December 31, 2022. This trend aligns with the reduction in total debt and signals a strengthening of the equity base or capital. After December 2022, the ratio increased again, fluctuating around 0.50 to 0.61 up to June 30, 2025, with a slight upward tilt in later periods. This indicates a relative rise in leverage or debt proportion relative to total capital in recent quarters. Overall, the trend reveals a phase of deleveraging followed by moderate re-leveraging.

The analysis of the financial data over the reported periods reveals several notable trends in the company's capital and debt structure. The total debt, including operating lease liability, exhibits fluctuations with an initial downward movement from March 2020 through December 2021, decreasing from approximately 31,620 million USD to 25,528 million USD. This decline suggests active debt management or repayment during this timeframe. However, from December 2021 onward, total debt shows a resurgence, reaching a peak near 28,909 million USD by June 2025, indicating an increase in borrowing or lease obligations in recent quarters.

Total capital, including operating lease liability, similarly presents variability but with a general upward trend over the analyzed period. Starting at around 34,919 million USD in March 2020, the figure dips sharply by December 2020 to approximately 28,411 million USD, then consistently climbs to reach roughly 44,659 million USD in June 2025. This rise after the initial drop reflects growth in the company’s invested capital base, which could be due to an infusion of equity, retained earnings, or increased long-term liabilities.

The debt-to-capital ratio moves in a somewhat correlated pattern with the observed debt and capital figures. Initially very high at 0.91 in March 2020, it declines steadily and significantly through December 2021 to 0.64, highlighting a reduction in leverage and possibly indicating a stronger equity position or lower relative debt levels. The lowest point occurs around December 2022 with a ratio of 0.54, reflecting the company’s strongest capital structure in terms of leverage during the period. Afterward, the ratio stabilizes in the range of 0.56 to 0.65, showing a moderate increase in leverage again through June 2025.

Overall, the company appears to have engaged in deleveraging from early 2020 to late 2022, improving its capital structure by reducing reliance on debt. From 2023 onward, there is a slight reversal or stability in this trend, with incremental increases in debt relative to total capital, suggesting renewed borrowing or lease commitments. This shifting leverage posture might reflect adjustments in strategic financing decisions or responses to market conditions.

Total Debt

The total debt shows a general declining trend from March 31, 2020, when it was approximately 28.6 billion USD, reaching the lowest point around December 31, 2022, at 19.7 billion USD. Starting from 2023, the total debt experiences some fluctuations with an increase in December 2023 at approximately 22.3 billion USD and another rise by June 30, 2025, reaching nearly 24.7 billion USD. Despite the fluctuations in the later periods, the overall trend over the span is a reduction in total debt compared to the early 2020 levels.

Total Assets

Total assets exhibit a moderate upward trajectory from approximately 60.9 billion USD in the first quarter of 2020 to a peak of about 72.2 billion USD in March 31, 2023. This peak is followed by minor decreases and recoveries, with the assets staying within the 68 to 72 billion USD range. The data indicates a relatively stable asset base with slight growth over the period under consideration.

Debt to Assets Ratio

The debt to assets ratio consistently declines from 0.47 in March 2020 to a low of 0.28 at December 31, 2022, reflecting improved leverage and potentially a stronger financial position due to lower relative debt levels. From 2023 onwards, the ratio fluctuates between 0.3 and 0.35, indicating a modest increase in leverage but still below the early 2020 levels. The ratio's stabilization within this range suggests managed debt levels relative to assets despite the observed fluctuations in total debt and assets.

Over the analyzed periods, total debt (including operating lease liability) demonstrates a general declining trend from March 31, 2020, to December 31, 2022, decreasing from approximately 31,620 million USD to 23,521 million USD. This reduction suggests a concerted effort to lower debt levels during this timeframe. However, starting in March 31, 2023, total debt exhibits fluctuations with increases and decreases, ultimately rising to 28,909 million USD by June 30, 2025. This recent volatility indicates a potential shift in leverage strategy or financing needs.

Total assets steadily increase from 60,895 million USD on March 31, 2020, peaking at 72,189 million USD on March 31, 2023. Thereafter, asset levels slightly fluctuate, ending at 70,923 million USD by June 30, 2025. The upward trend until early 2023 suggests growth or accumulation of asset base, while the minor subsequent variations imply stabilization or moderate portfolio adjustments.

The debt to assets ratio, calculated including operating lease liabilities, consistently declines from 0.52 in March 2020 to a low around 0.33 by December 31, 2022. This indicates a deleveraging trend where liabilities are decreasing relative to the asset base, enhancing solvency and potentially financial stability during that period. From March 31, 2023, onwards, the ratio experiences an increase and oscillates between 0.36 and 0.41, signaling a modest rise in leverage relative to assets. This corresponds with the observed fluctuations in total debt and suggests a cautious increase in financial risk or funding via debt instruments.

Overall, the data reflects an initial phase of debt reduction combined with asset growth enhancing balance sheet strength up to late 2022, followed by a period of more active leverage management accompanied by relatively stable asset levels. The recent increase in debt to assets ratio warrants monitoring, as it could impact financial flexibility depending on future capital and operational requirements.

Total assets

The total assets exhibit a gradual upward trend from March 2020 through December 2021, increasing from approximately 60,895 million US dollars to around 69,405 million US dollars. This growth stabilizes somewhat between 2022 and 2023, with values fluctuating slightly but maintaining a range between roughly 69,000 million and 72,000 million US dollars. In 2024 and the first half of 2025, total assets display a more variable pattern with small declines and recoveries, ending near 70,923 million US dollars in June 2025.

Equity for controlling interests

Equity for controlling interests shows significant fluctuations over the period. Starting at 3,299 million US dollars in March 2020, it rises substantially, peaking intermittently at over 20,000 million US dollars in late 2022 and early 2023. However, from late 2023 onward, a downward trend is observable, with equity decreasing steadily toward a level beneath 16,000 million US dollars by the middle of 2025. This indicates notable changes in equity structure and/or retained earnings during the period.

Financial leverage

Financial leverage ratio demonstrates considerable variability, particularly in 2020 with an extreme spike in December 2020 reaching nearly 95, which appears to be an anomaly relative to surrounding quarters. Excluding this outlier, the leverage generally decreases from 18.46 in early 2020 to a range around 3.5 to 4.5 from 2021 through mid-2025. This suggests a steady reduction in reliance on debt relative to equity and total assets over the longer term, stabilizing at moderate leverage levels throughout the recent years reported.

The earnings before interest and tax (EBIT) of the company exhibit considerable volatility throughout the periods analyzed. From March 2020 to September 2020, EBIT increased significantly from 1,417 million to 2,701 million US dollars, followed by a sharp decline to -4,113 million US dollars in December 2020, indicating substantial operational challenges during that quarter. Subsequently, EBIT rebounded strongly in March 2021 to 6,381 million US dollars, then declined and fluctuated between approximately 1,467 million and 4,649 million US dollars in the following quarters. Despite these fluctuations, the overall trend from 2021 onwards shows moderate variability with no clear sustained upward or downward movement. The most recent quarters from March 2024 to June 2025 demonstrate EBIT values predominantly in the range of 1,745 million to 2,356 million US dollars, suggesting stabilization at a moderate level.

Interest expense remains relatively stable over the time periods, ranging between 167 million and 238 million US dollars. There is a slight increasing trend observable from 167 million in March 2020 to a peak of 238 million US dollars in December 2025, which may reflect incremental borrowing costs or changes in financing structure. Overall, interest expense represents a relatively small and consistent cost relative to EBIT volatility.

The interest coverage ratio, a measure of the company’s ability to meet interest payments from operating earnings, shows significant variation. Data is missing for several early periods but becomes available from December 2020 onwards, where it reaches a peak of 24.91 in December 2021. Following this peak, the ratio gradually declines over subsequent quarters, falling to 8.86 by June 2025. Despite this decrease, the ratio remains above 8, indicating that the company maintains sufficient EBIT to cover interest expenses multiple times over throughout the entire period analyzed. The downward trend from the peak suggests a relative reduction in operating earnings compared to interest costs, potentially warranting ongoing monitoring.

In summary, the financial data reflects a period of significant operational fluctuation in EBIT around 2020 and early 2021, followed by a stabilization phase with moderate earnings performance. Interest expense shows a gradual increase but remains low in relation to EBIT. Interest coverage remains robust but is trending downward from historical highs, implying potential emerging pressure on the company’s earnings ability to service interest obligations. Overall, the company demonstrates resilience with manageable interest costs, though the volatility in EBIT suggests attention should be given to earnings stability going forward.