Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
United Parcel Service Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
An overall increase in financial leverage and a corresponding decline in debt-servicing capacity are evident across the observed periods. While solvency ratios showed initial improvement through late 2022, a consistent upward trend in debt-related ratios has materialized since 2023, suggesting an increased reliance on borrowed funds to finance operations and assets.
- Debt-to-Equity and Capital Ratios
- The Debt to Equity ratio experienced an initial contraction from 1.42 in March 2022 to a low of 0.99 by December 2022. This trend subsequently reversed, with the ratio climbing steadily to 1.63 by June 2026. When including operating lease liabilities, the leverage profile is further amplified, with the ratio rising from 1.65 in March 2022 to 1.90 by June 2026. Debt to Capital mirrors this trajectory, moving from a low of 0.50 in December 2022 to 0.62 by June 2026, indicating that debt now comprises a larger portion of the total capital structure.
- Asset-Based Solvency and Financial Leverage
- Debt to Assets remained relatively stable between 0.28 and 0.32 from March 2022 through December 2024, before trending upward to 0.34 by mid-2026. When lease liabilities are included, the Debt to Assets ratio peaked at 0.41 in mid-2025. Financial leverage followed a U-shaped pattern, declining from 4.55 in early 2022 to a minimum of 3.51 by June 2023, before entering a prolonged ascent to reach 4.73 by June 2026.
- Interest Coverage and Debt Servicing
- A pronounced and continuous downward trend is observed in the Interest Coverage ratio. Starting at a robust 20.95 in March 2022, the ratio remained stable through late 2022 but began a sharp decline throughout 2023 and 2024. By June 2026, the ratio decreased to 6.36. This significant reduction indicates a diminishing margin of safety and a weakened ability to cover interest expenses from operating earnings.
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Debt Ratios
Coverage Ratios
Debt to Equity
United Parcel Service Inc., debt to equity calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt and finance leases | 634) | 637) | 608) | 932) | 920) | 1,858) | 1,838) | 1,606) | 2,008) | 1,164) | 3,348) | 2,243) | 1,412) | 2,332) | 2,341) | 2,581) | 2,579) | 2,141) | ||||||
| Long-term debt and finance leases, excluding current maturities | 23,850) | 23,749) | 23,519) | 23,850) | 23,820) | 19,511) | 19,446) | 20,324) | 20,197) | 18,849) | 18,916) | 18,882) | 19,351) | 19,856) | 17,321) | 17,769) | 17,997) | 19,740) | ||||||
| Total debt | 24,484) | 24,386) | 24,127) | 24,782) | 24,740) | 21,369) | 21,284) | 21,930) | 22,205) | 20,013) | 22,264) | 21,125) | 20,763) | 22,188) | 19,662) | 20,350) | 20,576) | 21,881) | ||||||
| Equity for controlling interests | 15,067) | 15,763) | 16,227) | 15,823) | 15,750) | 15,660) | 16,718) | 16,857) | 17,030) | 16,909) | 17,306) | 19,168) | 20,019) | 20,038) | 19,786) | 16,968) | 16,289) | 15,416) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 1.63 | 1.55 | 1.49 | 1.57 | 1.57 | 1.36 | 1.27 | 1.30 | 1.30 | 1.18 | 1.29 | 1.10 | 1.04 | 1.11 | 0.99 | 1.20 | 1.26 | 1.42 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.75 | 0.76 | 0.73 | 0.75 | 0.76 | 0.75 | 0.73 | 0.77 | 0.77 | 0.77 | 0.79 | 0.82 | 0.84 | 0.80 | 0.81 | 0.84 | 0.82 | 0.85 | ||||||
| Uber Technologies Inc. | 0.47 | 0.42 | 0.39 | 0.38 | 0.42 | 0.38 | 0.39 | 0.74 | 0.77 | 0.86 | 0.84 | 0.99 | 1.07 | 1.23 | 1.26 | 1.48 | 1.39 | 1.04 | ||||||
| Union Pacific Corp. | 1.47 | 1.58 | 1.72 | 1.84 | 2.02 | 2.05 | 1.85 | 1.89 | 1.93 | 2.04 | 2.20 | 2.35 | 2.52 | 2.71 | 2.74 | 2.85 | 2.52 | 2.71 | ||||||
| United Airlines Holdings Inc. | 1.58 | 1.52 | 1.64 | 1.78 | 2.02 | 2.19 | 2.26 | 2.49 | 2.78 | 3.24 | 3.40 | 3.57 | 4.17 | 4.80 | 4.68 | 6.74 | 8.55 | 9.55 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Equity for controlling interests
= 24,484 ÷ 15,067 = 1.63
2 Click competitor name to see calculations.
The solvency profile exhibits a cyclical pattern characterized by an initial phase of deleveraging followed by a sustained increase in financial leverage. The debt-to-equity ratio experienced a notable decline during 2022, reaching a period low of 0.99 by December 31, 2022, before entering a long-term upward trajectory that culminated in a peak of 1.63 by June 30, 2026.
- Debt-to-Equity Ratio Trends
- A significant reduction in leverage occurred throughout 2022, with the ratio dropping from 1.42 in March to 0.99 in December. Following this trough, the ratio fluctuated between 1.04 and 1.30 throughout 2023 and 2024. A more aggressive increase in leverage is observed starting in March 2025, where the ratio rose from 1.36 to a high of 1.57 by June 2025, eventually climbing to 1.63 by the end of the observed period.
- Total Debt Movements
- Total debt showed a downward trend in 2022, decreasing from 21,881 million US$ to 19,662 million US$. The debt levels remained relatively stable, fluctuating between 20,013 million US$ and 22,264 million US$ through 2023 and 2024. A distinct upward shift occurred in 2025, with debt increasing to 24,740 million US$ by June and maintaining a high plateau around 24,400 million US$ through June 2026.
- Equity for Controlling Interests
- Equity saw a period of growth in 2022, peaking at 20,038 million US$ in March 2023. However, a gradual erosion of the equity base is evident from mid-2023 onwards. Equity declined from the 20,000 million US$ level to 17,306 million US$ by December 2023, and further decreased to 15,067 million US$ by June 2026. This contraction in equity, occurring simultaneously with rising debt, has acted as a primary driver for the increased debt-to-equity ratio in the latter half of the analysis period.
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Debt to Equity (including Operating Lease Liability)
United Parcel Service Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt and finance leases | 634) | 637) | 608) | 932) | 920) | 1,858) | 1,838) | 1,606) | 2,008) | 1,164) | 3,348) | 2,243) | 1,412) | 2,332) | 2,341) | 2,581) | 2,579) | 2,141) | ||||||
| Long-term debt and finance leases, excluding current maturities | 23,850) | 23,749) | 23,519) | 23,850) | 23,820) | 19,511) | 19,446) | 20,324) | 20,197) | 18,849) | 18,916) | 18,882) | 19,351) | 19,856) | 17,321) | 17,769) | 17,997) | 19,740) | ||||||
| Total debt | 24,484) | 24,386) | 24,127) | 24,782) | 24,740) | 21,369) | 21,284) | 21,930) | 22,205) | 20,013) | 22,264) | 21,125) | 20,763) | 22,188) | 19,662) | 20,350) | 20,576) | 21,881) | ||||||
| Current maturities of operating leases | 729) | 742) | 763) | 742) | 724) | 720) | 733) | 699) | 683) | 694) | 709) | 664) | 673) | 668) | 621) | 560) | 562) | 579) | ||||||
| Non-current operating leases | 3,460) | 3,534) | 3,700) | 3,687) | 3,445) | 3,505) | 3,635) | 3,613) | 3,561) | 3,690) | 3,756) | 3,651) | 3,680) | 3,539) | 3,238) | 2,960) | 2,962) | 2,970) | ||||||
| Total debt (including operating lease liability) | 28,673) | 28,662) | 28,590) | 29,211) | 28,909) | 25,594) | 25,652) | 26,242) | 26,449) | 24,397) | 26,729) | 25,440) | 25,116) | 26,395) | 23,521) | 23,870) | 24,100) | 25,430) | ||||||
| Equity for controlling interests | 15,067) | 15,763) | 16,227) | 15,823) | 15,750) | 15,660) | 16,718) | 16,857) | 17,030) | 16,909) | 17,306) | 19,168) | 20,019) | 20,038) | 19,786) | 16,968) | 16,289) | 15,416) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.90 | 1.82 | 1.76 | 1.85 | 1.84 | 1.63 | 1.53 | 1.56 | 1.55 | 1.44 | 1.54 | 1.33 | 1.25 | 1.32 | 1.19 | 1.41 | 1.48 | 1.65 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 1.34 | 1.36 | 1.33 | 1.39 | 1.41 | 1.39 | 1.37 | 1.42 | 1.43 | 1.44 | 1.47 | 1.54 | 1.58 | 1.50 | 1.49 | 1.52 | 1.48 | 1.49 | ||||||
| Uber Technologies Inc. | 0.54 | 0.50 | 0.45 | 0.43 | 0.50 | 0.45 | 0.46 | 0.86 | 0.90 | 1.01 | 1.00 | 1.17 | 1.27 | 1.48 | 1.52 | 1.77 | 1.68 | 1.25 | ||||||
| Union Pacific Corp. | 1.50 | 1.61 | 1.76 | 1.88 | 2.07 | 2.09 | 1.90 | 1.95 | 1.99 | 2.10 | 2.29 | 2.44 | 2.62 | 2.81 | 2.85 | 2.96 | 2.62 | 2.82 | ||||||
| United Airlines Holdings Inc. | 2.02 | 1.95 | 2.03 | 2.19 | 2.45 | 2.61 | 2.65 | 2.92 | 3.25 | 3.79 | 3.94 | 4.15 | 4.85 | 5.58 | 5.41 | 7.84 | 9.94 | 11.12 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity for controlling interests
= 28,673 ÷ 15,067 = 1.90
2 Click competitor name to see calculations.
The analysis of solvency indicators reveals a cyclical pattern in leverage, characterized by an initial period of deleveraging followed by a sustained increase in the debt-to-equity ratio over the subsequent years.
- Debt to Equity Ratio Trends
- The debt-to-equity ratio, which incorporates operating lease liabilities, exhibited significant volatility. A downward trend was observed between March 31, 2022, and December 31, 2022, where the ratio decreased from 1.65 to a period low of 1.19. However, from early 2023 through June 30, 2026, a consistent upward trajectory is evident, with the ratio peaking at 1.90. This indicates a progressive increase in the reliance on debt relative to shareholder equity to finance operations and assets.
- Total Debt Dynamics
- Total debt levels remained relatively stable during 2022, fluctuating between 23,521 million and 25,430 million. A shift occurred in early 2025, where debt levels rose sharply, exceeding 28,000 million for the remainder of the period. The highest debt obligation was recorded on June 30, 2025, at 29,211 million, suggesting an expansion of liabilities in the latter half of the analyzed timeframe.
- Equity for Controlling Interests
- Equity showed a period of growth in 2022 and early 2023, reaching a peak of 20,038 million on March 31, 2023. Following this peak, equity entered a gradual decline, falling to 15,067 million by June 30, 2026. This reduction in equity, occurring simultaneously with rising total debt, served as the primary driver for the deterioration of the solvency ratio.
- Solvency Interpretation
- The convergence of increasing total liabilities and decreasing equity for controlling interests has resulted in a weakened solvency profile. While the company successfully reduced its leverage in late 2022, the trend reversed starting in 2023, leading to a higher risk profile by mid-2026 as the debt-to-equity ratio approached 2.0.
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Debt to Capital
United Parcel Service Inc., debt to capital calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt and finance leases | 634) | 637) | 608) | 932) | 920) | 1,858) | 1,838) | 1,606) | 2,008) | 1,164) | 3,348) | 2,243) | 1,412) | 2,332) | 2,341) | 2,581) | 2,579) | 2,141) | ||||||
| Long-term debt and finance leases, excluding current maturities | 23,850) | 23,749) | 23,519) | 23,850) | 23,820) | 19,511) | 19,446) | 20,324) | 20,197) | 18,849) | 18,916) | 18,882) | 19,351) | 19,856) | 17,321) | 17,769) | 17,997) | 19,740) | ||||||
| Total debt | 24,484) | 24,386) | 24,127) | 24,782) | 24,740) | 21,369) | 21,284) | 21,930) | 22,205) | 20,013) | 22,264) | 21,125) | 20,763) | 22,188) | 19,662) | 20,350) | 20,576) | 21,881) | ||||||
| Equity for controlling interests | 15,067) | 15,763) | 16,227) | 15,823) | 15,750) | 15,660) | 16,718) | 16,857) | 17,030) | 16,909) | 17,306) | 19,168) | 20,019) | 20,038) | 19,786) | 16,968) | 16,289) | 15,416) | ||||||
| Total capital | 39,551) | 40,149) | 40,354) | 40,605) | 40,490) | 37,029) | 38,002) | 38,787) | 39,235) | 36,922) | 39,570) | 40,293) | 40,782) | 42,226) | 39,448) | 37,318) | 36,865) | 37,297) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.62 | 0.61 | 0.60 | 0.61 | 0.61 | 0.58 | 0.56 | 0.57 | 0.57 | 0.54 | 0.56 | 0.52 | 0.51 | 0.53 | 0.50 | 0.55 | 0.56 | 0.59 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.43 | 0.43 | 0.42 | 0.43 | 0.43 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.46 | 0.44 | 0.45 | 0.46 | 0.45 | 0.46 | ||||||
| Uber Technologies Inc. | 0.32 | 0.30 | 0.28 | 0.27 | 0.30 | 0.28 | 0.28 | 0.43 | 0.43 | 0.46 | 0.46 | 0.50 | 0.52 | 0.55 | 0.56 | 0.60 | 0.58 | 0.51 | ||||||
| Union Pacific Corp. | 0.59 | 0.61 | 0.63 | 0.65 | 0.67 | 0.67 | 0.65 | 0.65 | 0.66 | 0.67 | 0.69 | 0.70 | 0.72 | 0.73 | 0.73 | 0.74 | 0.72 | 0.73 | ||||||
| United Airlines Holdings Inc. | 0.61 | 0.60 | 0.62 | 0.64 | 0.67 | 0.69 | 0.69 | 0.71 | 0.74 | 0.76 | 0.77 | 0.78 | 0.81 | 0.83 | 0.82 | 0.87 | 0.90 | 0.91 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 24,484 ÷ 39,551 = 0.62
2 Click competitor name to see calculations.
The solvency profile between March 2022 and June 2026 is characterized by an initial period of deleveraging followed by a significant increase in leverage toward the end of the period. The debt to capital ratio reflects these shifts, moving from a low of 0.50 in late 2022 to a peak of 0.62 by mid-2026.
- Debt to Capital Ratio Analysis
- A downward trend was observed throughout 2022, with the ratio declining from 0.59 in March to 0.50 in December. From January 2023 through December 2024, the ratio remained relatively stable, oscillating within a range of 0.51 to 0.58. However, a sustained upward movement began in June 2025, where the ratio climbed to 0.61 and eventually reached 0.62 by June 2026, indicating a higher reliance on debt relative to total capital.
- Total Debt Trends
- Total debt levels exhibited volatility, starting at 21,881 million US$ in March 2022 and dipping to 19,662 million US$ by December 2022. Debt remained largely contained between 20,000 million US$ and 22,300 million US$ through March 2024. A notable shift occurred in June 2025, where debt increased sharply to 24,740 million US$, maintaining a plateau above 24,000 million US$ through the final observation period in June 2026.
- Total Capital Fluctuations
- Total capital experienced a peak of 42,226 million US$ in March 2023, followed by a gradual contraction to a low of 36,922 million US$ in March 2024. Beginning in June 2025, total capital expanded again, returning to a range between 39,551 million US$ and 40,605 million US$. The simultaneous increase in both total debt and total capital during this period confirms that the growth in the debt to capital ratio was driven by debt accumulation outpacing the growth of other capital components.
The overall trajectory indicates a strategic transition. The period from 2022 to 2024 was marked by capital structure optimization and debt reduction. In contrast, the period from 2025 to 2026 shows a clear trend toward increased leverage, as total debt rose by approximately 20% from its early 2024 lows, leading to a weakened solvency ratio.
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Debt to Capital (including Operating Lease Liability)
United Parcel Service Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt and finance leases | 634) | 637) | 608) | 932) | 920) | 1,858) | 1,838) | 1,606) | 2,008) | 1,164) | 3,348) | 2,243) | 1,412) | 2,332) | 2,341) | 2,581) | 2,579) | 2,141) | ||||||
| Long-term debt and finance leases, excluding current maturities | 23,850) | 23,749) | 23,519) | 23,850) | 23,820) | 19,511) | 19,446) | 20,324) | 20,197) | 18,849) | 18,916) | 18,882) | 19,351) | 19,856) | 17,321) | 17,769) | 17,997) | 19,740) | ||||||
| Total debt | 24,484) | 24,386) | 24,127) | 24,782) | 24,740) | 21,369) | 21,284) | 21,930) | 22,205) | 20,013) | 22,264) | 21,125) | 20,763) | 22,188) | 19,662) | 20,350) | 20,576) | 21,881) | ||||||
| Current maturities of operating leases | 729) | 742) | 763) | 742) | 724) | 720) | 733) | 699) | 683) | 694) | 709) | 664) | 673) | 668) | 621) | 560) | 562) | 579) | ||||||
| Non-current operating leases | 3,460) | 3,534) | 3,700) | 3,687) | 3,445) | 3,505) | 3,635) | 3,613) | 3,561) | 3,690) | 3,756) | 3,651) | 3,680) | 3,539) | 3,238) | 2,960) | 2,962) | 2,970) | ||||||
| Total debt (including operating lease liability) | 28,673) | 28,662) | 28,590) | 29,211) | 28,909) | 25,594) | 25,652) | 26,242) | 26,449) | 24,397) | 26,729) | 25,440) | 25,116) | 26,395) | 23,521) | 23,870) | 24,100) | 25,430) | ||||||
| Equity for controlling interests | 15,067) | 15,763) | 16,227) | 15,823) | 15,750) | 15,660) | 16,718) | 16,857) | 17,030) | 16,909) | 17,306) | 19,168) | 20,019) | 20,038) | 19,786) | 16,968) | 16,289) | 15,416) | ||||||
| Total capital (including operating lease liability) | 43,740) | 44,425) | 44,817) | 45,034) | 44,659) | 41,254) | 42,370) | 43,099) | 43,479) | 41,306) | 44,035) | 44,608) | 45,135) | 46,433) | 43,307) | 40,838) | 40,389) | 40,846) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.66 | 0.65 | 0.64 | 0.65 | 0.65 | 0.62 | 0.61 | 0.61 | 0.61 | 0.59 | 0.61 | 0.57 | 0.56 | 0.57 | 0.54 | 0.58 | 0.60 | 0.62 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.57 | 0.58 | 0.57 | 0.58 | 0.58 | 0.58 | 0.58 | 0.59 | 0.59 | 0.59 | 0.60 | 0.61 | 0.61 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | ||||||
| Uber Technologies Inc. | 0.35 | 0.33 | 0.31 | 0.30 | 0.33 | 0.31 | 0.32 | 0.46 | 0.47 | 0.50 | 0.50 | 0.54 | 0.56 | 0.60 | 0.60 | 0.64 | 0.63 | 0.56 | ||||||
| Union Pacific Corp. | 0.60 | 0.62 | 0.64 | 0.65 | 0.67 | 0.68 | 0.66 | 0.66 | 0.67 | 0.68 | 0.70 | 0.71 | 0.72 | 0.74 | 0.74 | 0.75 | 0.72 | 0.74 | ||||||
| United Airlines Holdings Inc. | 0.67 | 0.66 | 0.67 | 0.69 | 0.71 | 0.72 | 0.73 | 0.74 | 0.76 | 0.79 | 0.80 | 0.81 | 0.83 | 0.85 | 0.84 | 0.89 | 0.91 | 0.92 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 28,673 ÷ 43,740 = 0.66
2 Click competitor name to see calculations.
The solvency profile exhibits a period of initial deleveraging followed by a sustained increase in financial leverage. Between March 2022 and June 2026, the proportion of debt relative to total capital reached a trough in late 2022 before trending upward to reach a period high of 0.66.
- Total Debt Trajectory
- Total debt, including operating lease liabilities, decreased from 25,430 million USD in March 2022 to a minimum of 23,521 million USD by December 2022. This was followed by an increase through 2023, peaking at 26,729 million USD. After a period of relative stability during 2024, debt levels escalated in 2025, reaching 29,211 million USD in June 2025 and remaining above 28,600 million USD through June 2026.
- Total Capital Trends
- Total capital grew from 40,846 million USD in March 2022 to a peak of 46,433 million USD in March 2023. A downward correction occurred throughout 2024, with capital falling to 41,254 million USD by March 2025. A subsequent recovery brought capital to 45,034 million USD in June 2025, before it moderately declined to 43,740 million USD by June 2026.
- Debt to Capital Ratio Analysis
- The debt to capital ratio demonstrates a cyclical pattern, falling from 0.62 in March 2022 to 0.54 in December 2022. Following this low, a consistent upward trend is observed, with the ratio returning to 0.61 by December 2023. Throughout 2024, the ratio remained stable between 0.59 and 0.61, before entering a final climbing phase that culminated in a ratio of 0.66 by June 2026, indicating a progressive increase in the company's financial leverage over the long term.
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Debt to Assets
United Parcel Service Inc., debt to assets calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt and finance leases | 634) | 637) | 608) | 932) | 920) | 1,858) | 1,838) | 1,606) | 2,008) | 1,164) | 3,348) | 2,243) | 1,412) | 2,332) | 2,341) | 2,581) | 2,579) | 2,141) | ||||||
| Long-term debt and finance leases, excluding current maturities | 23,850) | 23,749) | 23,519) | 23,850) | 23,820) | 19,511) | 19,446) | 20,324) | 20,197) | 18,849) | 18,916) | 18,882) | 19,351) | 19,856) | 17,321) | 17,769) | 17,997) | 19,740) | ||||||
| Total debt | 24,484) | 24,386) | 24,127) | 24,782) | 24,740) | 21,369) | 21,284) | 21,930) | 22,205) | 20,013) | 22,264) | 21,125) | 20,763) | 22,188) | 19,662) | 20,350) | 20,576) | 21,881) | ||||||
| Total assets | 71,267) | 71,809) | 73,090) | 71,392) | 70,923) | 68,466) | 70,070) | 68,263) | 69,418) | 67,628) | 70,857) | 70,281) | 70,347) | 72,189) | 71,124) | 69,544) | 70,089) | 70,113) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.34 | 0.34 | 0.33 | 0.35 | 0.35 | 0.31 | 0.30 | 0.32 | 0.32 | 0.30 | 0.31 | 0.30 | 0.30 | 0.31 | 0.28 | 0.29 | 0.29 | 0.31 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.24 | 0.24 | 0.23 | 0.24 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | ||||||
| Uber Technologies Inc. | 0.19 | 0.18 | 0.17 | 0.17 | 0.17 | 0.16 | 0.16 | 0.23 | 0.23 | 0.24 | 0.24 | 0.26 | 0.27 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | ||||||
| Union Pacific Corp. | 0.43 | 0.44 | 0.46 | 0.46 | 0.48 | 0.48 | 0.46 | 0.46 | 0.47 | 0.47 | 0.49 | 0.49 | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | ||||||
| United Airlines Holdings Inc. | 0.31 | 0.30 | 0.33 | 0.33 | 0.35 | 0.36 | 0.39 | 0.39 | 0.40 | 0.41 | 0.45 | 0.43 | 0.44 | 0.45 | 0.48 | 0.48 | 0.48 | 0.50 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 24,484 ÷ 71,267 = 0.34
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a period of relative stability followed by a moderate increase in leverage starting in 2025. For the majority of the observed period, the debt-to-assets ratio remained within a narrow corridor between 0.28 and 0.32, indicating a consistent approach to financing the asset base through a combination of debt and equity.
- Debt to Assets Ratio Trend
- An initial downward movement was observed during 2022, with the ratio declining from 0.31 in March to a period low of 0.28 by December. Throughout 2023 and 2024, the ratio fluctuated minimally, generally holding between 0.30 and 0.32. However, a structural shift occurred in the first half of 2025, where the ratio ascended to a peak of 0.35. This elevated level of leverage persisted through mid-2026, stabilizing at approximately 0.34.
- Total Debt Dynamics
- Debt levels showed significant volatility across the timeline. A reduction in total debt was evident in 2022, reaching a minimum of 19,662 million US dollars in December. Following this, debt levels fluctuated around the 20,000 to 22,000 million US dollar range until early 2025. A substantial increase in borrowing is noted between March 2025 and June 2025, where total debt rose from 21,369 million US dollars to 24,740 million US dollars, representing a marked expansion of the company's liabilities.
- Asset Base Stability
- Total assets remained relatively stable, primarily oscillating between 67,000 million and 73,000 million US dollars. A temporary contraction in the asset base occurred in March 2024, reaching a low of 67,628 million US dollars. Assets subsequently recovered and reached a peak of 73,090 million US dollars by December 2025. The increase in the debt-to-assets ratio in 2025 and 2026 is primarily driven by the growth in total debt rather than a decline in assets, as the asset base grew concurrently with the increase in liabilities.
Overall, the financial trajectory suggests a transition from a deleveraging phase in 2022 to a more aggressive leveraging strategy starting in 2025. While the asset base has expanded slightly, the pace of debt accumulation has outstripped asset growth, resulting in a higher proportion of assets being financed by debt toward the end of the analyzed period.
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Debt to Assets (including Operating Lease Liability)
United Parcel Service Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current maturities of long-term debt and finance leases | 634) | 637) | 608) | 932) | 920) | 1,858) | 1,838) | 1,606) | 2,008) | 1,164) | 3,348) | 2,243) | 1,412) | 2,332) | 2,341) | 2,581) | 2,579) | 2,141) | ||||||
| Long-term debt and finance leases, excluding current maturities | 23,850) | 23,749) | 23,519) | 23,850) | 23,820) | 19,511) | 19,446) | 20,324) | 20,197) | 18,849) | 18,916) | 18,882) | 19,351) | 19,856) | 17,321) | 17,769) | 17,997) | 19,740) | ||||||
| Total debt | 24,484) | 24,386) | 24,127) | 24,782) | 24,740) | 21,369) | 21,284) | 21,930) | 22,205) | 20,013) | 22,264) | 21,125) | 20,763) | 22,188) | 19,662) | 20,350) | 20,576) | 21,881) | ||||||
| Current maturities of operating leases | 729) | 742) | 763) | 742) | 724) | 720) | 733) | 699) | 683) | 694) | 709) | 664) | 673) | 668) | 621) | 560) | 562) | 579) | ||||||
| Non-current operating leases | 3,460) | 3,534) | 3,700) | 3,687) | 3,445) | 3,505) | 3,635) | 3,613) | 3,561) | 3,690) | 3,756) | 3,651) | 3,680) | 3,539) | 3,238) | 2,960) | 2,962) | 2,970) | ||||||
| Total debt (including operating lease liability) | 28,673) | 28,662) | 28,590) | 29,211) | 28,909) | 25,594) | 25,652) | 26,242) | 26,449) | 24,397) | 26,729) | 25,440) | 25,116) | 26,395) | 23,521) | 23,870) | 24,100) | 25,430) | ||||||
| Total assets | 71,267) | 71,809) | 73,090) | 71,392) | 70,923) | 68,466) | 70,070) | 68,263) | 69,418) | 67,628) | 70,857) | 70,281) | 70,347) | 72,189) | 71,124) | 69,544) | 70,089) | 70,113) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.40 | 0.40 | 0.39 | 0.41 | 0.41 | 0.37 | 0.37 | 0.38 | 0.38 | 0.36 | 0.38 | 0.36 | 0.36 | 0.37 | 0.33 | 0.34 | 0.34 | 0.36 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.42 | 0.43 | 0.43 | 0.44 | 0.44 | 0.44 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | ||||||
| Uber Technologies Inc. | 0.22 | 0.21 | 0.20 | 0.19 | 0.20 | 0.19 | 0.19 | 0.27 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.34 | 0.35 | 0.36 | 0.36 | 0.34 | ||||||
| Union Pacific Corp. | 0.43 | 0.45 | 0.47 | 0.47 | 0.49 | 0.49 | 0.47 | 0.48 | 0.48 | 0.49 | 0.50 | 0.51 | 0.52 | 0.53 | 0.53 | 0.53 | 0.52 | 0.52 | ||||||
| United Airlines Holdings Inc. | 0.40 | 0.38 | 0.41 | 0.41 | 0.42 | 0.43 | 0.45 | 0.46 | 0.47 | 0.48 | 0.52 | 0.50 | 0.51 | 0.53 | 0.55 | 0.56 | 0.56 | 0.58 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 28,673 ÷ 71,267 = 0.40
2 Click competitor name to see calculations.
The analysis of the solvency profile reveals a period of relative stability followed by a moderate increase in leverage. The debt-to-assets ratio, which includes operating lease liabilities, fluctuated between a low of 0.33 and a peak of 0.41 over the observed period, indicating a shift toward a higher proportion of debt financing relative to the total asset base.
- Total Debt Trends
- Total debt exhibited a downward trend throughout 2022, declining from 25,430 million USD to 23,521 million USD. This trend reversed in 2023, with liabilities increasing to 26,729 million USD by year-end. A significant increase is observed in the first half of 2025, where total debt reached a peak of 29,211 million USD in June 2025, before stabilizing near 28,673 million USD by mid-2026.
- Total Asset Fluctuations
- Total assets remained relatively stable, generally oscillating between 67,000 million USD and 73,000 million USD. A notable contraction occurred in March 2024, with assets dipping to 67,628 million USD. Subsequently, a growth phase is observed through 2025, reaching a maximum value of 73,090 million USD in September 2025, which suggests a period of asset expansion coinciding with the increase in total debt.
- Debt to Assets Ratio Analysis
- The solvency ratio initially improved from 0.36 in March 2022 to its lowest point of 0.33 in December 2022. However, the ratio trended upward starting in 2023, maintaining a range between 0.36 and 0.38 through 2024. The most pronounced increase occurred in the first half of 2025, where the ratio climbed to 0.41. By the second quarter of 2026, the ratio settled at 0.40, reflecting a higher long-term leverage position compared to the 2022 baseline.
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Financial Leverage
United Parcel Service Inc., financial leverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | 71,267) | 71,809) | 73,090) | 71,392) | 70,923) | 68,466) | 70,070) | 68,263) | 69,418) | 67,628) | 70,857) | 70,281) | 70,347) | 72,189) | 71,124) | 69,544) | 70,089) | 70,113) | ||||||
| Equity for controlling interests | 15,067) | 15,763) | 16,227) | 15,823) | 15,750) | 15,660) | 16,718) | 16,857) | 17,030) | 16,909) | 17,306) | 19,168) | 20,019) | 20,038) | 19,786) | 16,968) | 16,289) | 15,416) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 4.73 | 4.56 | 4.50 | 4.51 | 4.50 | 4.37 | 4.19 | 4.05 | 4.08 | 4.00 | 4.09 | 3.67 | 3.51 | 3.60 | 3.59 | 4.10 | 4.30 | 4.55 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 3.17 | 3.18 | 3.12 | 3.18 | 3.23 | 3.19 | 3.15 | 3.26 | 3.29 | 3.30 | 3.34 | 3.47 | 3.55 | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | ||||||
| Uber Technologies Inc. | 2.41 | 2.42 | 2.29 | 2.25 | 2.48 | 2.40 | 2.38 | 3.19 | 3.36 | 3.58 | 3.44 | 3.84 | 3.93 | 4.32 | 4.37 | 4.98 | 4.66 | 3.68 | ||||||
| Union Pacific Corp. | 3.44 | 3.59 | 3.77 | 3.97 | 4.22 | 4.27 | 4.01 | 4.07 | 4.11 | 4.29 | 4.54 | 4.75 | 5.00 | 5.30 | 5.38 | 5.56 | 5.07 | 5.38 | ||||||
| United Airlines Holdings Inc. | 5.06 | 5.10 | 5.00 | 5.33 | 5.77 | 6.03 | 5.84 | 6.35 | 6.96 | 7.83 | 7.63 | 8.26 | 9.52 | 10.56 | 9.77 | 14.08 | 17.76 | 19.05 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Equity for controlling interests
= 71,267 ÷ 15,067 = 4.73
2 Click competitor name to see calculations.
The financial leverage of the entity exhibits a U-shaped trajectory over the period from March 31, 2022, to June 30, 2026. An initial phase of deleveraging is observed during the first year and a half, followed by a sustained increase in the leverage ratio throughout the remainder of the period.
- Asset Base Stability
- Total assets remained relatively stable, fluctuating within a range between 67,628 million USD and 73,090 million USD. Despite minor quarterly variations, there is no significant long-term growth or contraction in the total asset base, suggesting a consistent scale of operations.
- Equity Volatility
- Equity for controlling interests showed a distinct growth phase, peaking at 20,038 million USD in March 2023. Subsequently, a consistent downward trend emerged, with equity declining to 15,067 million USD by June 30, 2026. This reduction in equity served as the primary driver for the increase in financial leverage, as the asset base did not decrease proportionally.
- Financial Leverage Ratio Dynamics
- The leverage ratio experienced a notable decline from 4.55 in March 2022 to a minimum of 3.51 in June 2023, indicating a period of improved solvency and reduced reliance on debt relative to equity. However, from June 2023 onward, the ratio entered a steady ascent, reaching a peak of 4.73 by June 30, 2026. This represents the highest leverage level in the observed dataset, signaling an increased financial risk profile toward the end of the period.
The correlation between the declining equity levels and the rising leverage ratio indicates that the increase in financial risk is not the result of aggressive asset expansion, but rather a contraction of the equity cushion. By the end of the analyzed period, the leverage ratio exceeds the initial levels recorded in early 2022, suggesting a shift toward a more highly leveraged capital structure.
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Interest Coverage
United Parcel Service Inc., interest coverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income | 604) | 864) | 1,791) | 1,311) | 1,283) | 1,187) | 1,721) | 1,539) | 1,409) | 1,113) | 1,605) | 1,127) | 2,081) | 1,895) | 3,453) | 2,584) | 2,849) | 2,662) | ||||||
| Add: Income tax expense | 157) | 260) | 581) | 296) | 379) | 336) | 406) | 371) | 460) | 423) | 458) | 141) | 639) | 627) | 1,014) | 685) | 848) | 730) | ||||||
| Add: Interest expense | 272) | 266) | 266) | 291) | 238) | 222) | 229) | 230) | 212) | 195) | 207) | 199) | 191) | 188) | 182) | 177) | 171) | 174) | ||||||
| Earnings before interest and tax (EBIT) | 1,033) | 1,390) | 2,638) | 1,898) | 1,900) | 1,745) | 2,356) | 2,140) | 2,081) | 1,731) | 2,270) | 1,467) | 2,911) | 2,710) | 4,649) | 3,446) | 3,868) | 3,566) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Interest coverage1 | 6.36 | 7.38 | 8.04 | 8.06 | 8.86 | 9.32 | 9.59 | 9.74 | 9.29 | 10.58 | 11.92 | 15.44 | 18.59 | 20.44 | 22.06 | 21.60 | 21.21 | 20.95 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| Uber Technologies Inc. | 15.32 | 11.95 | 14.06 | 15.41 | 14.78 | 13.09 | 8.81 | 9.95 | 5.18 | 4.12 | 4.74 | 2.67 | 0.55 | -4.42 | -15.49 | -15.64 | -19.05 | -13.64 | ||||||
| Union Pacific Corp. | 8.40 | 8.09 | 8.00 | 7.97 | 7.94 | 7.93 | 7.93 | 7.75 | 7.47 | 7.20 | 7.14 | 7.13 | 7.59 | 8.00 | 8.14 | 8.40 | 8.34 | 8.53 | ||||||
| United Airlines Holdings Inc. | 5.05 | 5.15 | 4.69 | 4.54 | 4.43 | 4.65 | 3.97 | 3.40 | 3.34 | 3.02 | 2.91 | 3.09 | 2.92 | 2.44 | 1.59 | 0.40 | 0.06 | -0.56 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (1,033 + 1,390 + 2,638 + 1,898)
÷ (272 + 266 + 266 + 291)
= 6.36
2 Click competitor name to see calculations.
A comprehensive deterioration in the solvency position is observed over the period from March 2022 to June 2026. This trend is characterized by a significant compression of the interest coverage ratio, driven by the dual impact of declining operating earnings and rising debt servicing costs.
- Earnings before interest and tax (EBIT)
- Operating performance exhibited substantial volatility, reaching a peak of 4,649 million USD in December 2022 before entering a general downward trajectory. A marked contraction occurred throughout 2023, with earnings falling to a low of 1,467 million USD in September 2023. While some recovery was observed during 2024 and early 2025, the period concluded with a sharp decline to 1,033 million USD by June 2026.
- Interest Expense
- Debt servicing costs demonstrated a consistent upward trend. Interest expenses rose from 174 million USD in March 2022 to 272 million USD by June 2026. This steady increase indicates a growing financial burden, potentially resulting from higher interest rates or increased leverage.
- Interest Coverage Ratio
- The ability to cover interest obligations has diminished significantly, with the ratio falling from a peak of 22.06 in December 2022 to 6.36 by June 2026. A critical inflection point is observed between September 2023 and June 2024, where the ratio dropped from 15.44 to 9.29. This downward progression indicates a reduction in the margin of safety available to meet financial obligations from operating profits.
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