Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Analysis of Solvency Ratios 
Quarterly Data

Microsoft Excel

Solvency Ratios (Summary)

United Parcel Service Inc., solvency ratios (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Debt Ratios
Debt to equity 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 1.54 1.84 2.09 3.32 37.53 4.60 6.18 8.67
Debt to equity (including operating lease liability) 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 1.79 2.13 2.42 3.75 42.24 5.14 6.86 9.58
Debt to capital 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 0.61 0.65 0.68 0.77 0.97 0.82 0.86 0.90
Debt to capital (including operating lease liability) 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 0.64 0.68 0.71 0.79 0.98 0.84 0.87 0.91
Debt to assets 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 0.32 0.34 0.35 0.37 0.40 0.41 0.43 0.47
Debt to assets (including operating lease liability) 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 0.37 0.39 0.40 0.42 0.44 0.46 0.48 0.52
Financial leverage 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 4.87 5.46 6.00 8.86 94.99 11.16 14.22 18.46
Coverage Ratios
Interest coverage 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 24.91 12.99 12.33 10.56 3.63

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).


Debt to Equity Ratios
The debt to equity ratio demonstrated a notable decline from 8.67 at the start of 2020 to a peak of 37.53 by the end of that year. Following this spike, the ratio consistently decreased to below 2.0 throughout 2021 and gradually stabilized between approximately 1.0 and 1.4 from 2022 through early 2025. When operating lease liabilities are included, the pattern mirrors that of the base ratio but with slightly higher values, peaking at 42.24 in late 2020 and leveling off around 1.3 to 1.6 in subsequent years. This suggests a significant deleveraging event or accounting change in late 2020, followed by a period of more moderate and stable leverage usage.
Debt to Capital Ratios
Debt to capital ratios (both excluding and including operating lease liabilities) started high, with values near 0.90 and 0.91 respectively in early 2020, climbed to peaks in late 2020 (0.97 to 0.98), and then decreased steadily through 2021 and into 2022. Ratios settled near 0.50 to 0.56 between 2022 and early 2025, indicating a reduced reliance on debt financing relative to total capital. The inclusion of operating lease liabilities results in marginally higher ratios but shows similar trends, reflecting improved capital structure management over time.
Debt to Assets Ratios
The ratios of debt to total assets also reveal a declining trend from early 2020 through 2022, moving from approximately 0.47 (0.52 including operating leases) down to the 0.28-0.30 range, indicating reduced leverage relative to total asset base. Post-2022, these ratios hold relatively steady between 0.30 and 0.32 (or 0.36 to 0.38 with operating leases), suggesting conservative debt levels as a proportion of asset holdings.
Financial Leverage Ratio
Financial leverage, measured by the total assets divided by equity, saw a stark spike at the end of 2020 to nearly 95, which is abnormally high compared to other periods. Before and after this anomaly, leverage ratios trended downward from 18.46 in early 2020 to a stable range around 3.5 to 4.4 through 2022 to early 2025. This consistent pattern suggests a return to normalized financial leverage after a significant but temporary upheaval in late 2020.
Interest Coverage Ratio
Interest coverage ratios, unavailable in early 2020, show strong improvement from 3.63 in late 2020 to a peak above 24 by the end of 2021, indicating the company’s increased ability to cover interest expenses with earnings. Following this peak, the ratio decreased gradually but remained robust, fluctuating between about 9.3 and 22 from 2022 into 2025. These levels reflect sustained strong operational earnings capacity relative to interest obligations.

Debt Ratios


Coverage Ratios


Debt to Equity

United Parcel Service Inc., debt to equity calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Current maturities of long-term debt, commercial paper and finance leases 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 2,131 1,268 1,564 1,811 2,623 2,382 3,749 4,405
Long-term debt and finance leases, excluding current maturities 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 19,784 20,838 21,027 21,916 22,031 23,336 23,199 24,196
Total debt 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 21,915 22,106 22,591 23,727 24,654 25,718 26,948 28,601
 
Equity for controlling interests 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 14,253 12,041 10,805 7,147 657 5,592 4,363 3,299
Solvency Ratio
Debt to equity1 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 1.54 1.84 2.09 3.32 37.53 4.60 6.18 8.67
Benchmarks
Debt to Equity, Competitors2
FedEx Corp. 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 0.86 1.07 1.11 1.20 1.20 1.03 1.01 1.03
Uber Technologies Inc. 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 0.64 0.67 0.55 0.57 0.62 0.75 0.70 0.50
Union Pacific Corp. 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 2.10 2.11 2.01 1.64 1.58 1.63 1.73 1.74
United Airlines Holdings Inc. 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 7.03 6.55 7.39 5.69 4.75 4.03 2.25 1.88

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Debt to equity = Total debt ÷ Equity for controlling interests
= 21,369 ÷ 15,660 = 1.36

2 Click competitor name to see calculations.


The financial data reveals several noteworthy trends concerning the total debt, equity attributable to controlling interests, and the debt to equity ratio over the observed periods.

Total Debt
Total debt exhibited a general downward trend from March 31, 2020 (US$ 28,601 million) through December 31, 2022 (US$ 19,662 million), indicating a reduction in the company's leverage over this timeframe. However, from March 31, 2023 onward, there is a fluctuating pattern with total debt varying between approximately US$ 20,013 million and US$ 22,264 million, suggesting some variability in the company’s debt levels in recent quarters without a clear directional trend.
Equity for Controlling Interests
Equity showed a significant increase from March 31, 2020 (US$ 3,299 million) to December 31, 2020 (US$ 657 million) where a sharp decline is noted, followed by a robust recovery and continued growth reaching US$ 19,786 million at December 31, 2022. After that point, equity stabilized around US$ 17,000 to US$ 20,000 million with some slight fluctuations but generally maintaining a higher base compared to the early periods. The trend suggests improved shareholder value and strengthened equity base after some earlier volatility.
Debt to Equity Ratio
This ratio decreased dramatically from 8.67 at March 31, 2020, to 0.99 by December 31, 2022, reflecting a substantial improvement in the company’s capital structure with lower debt relative to equity. Post-December 2022, the ratio hovered around 1.1 to 1.36, indicating a relatively stable and balanced leverage position. The very high value at December 31, 2020 (37.53) appears to be a likely anomaly due to the equity value at that date, which temporarily dropped sharply, causing a spike in the ratio.

In summary, the company demonstrates a clear long-term deleveraging trend combined with increasing equity, leading to a more balanced capital structure by the end of the observed periods. Despite some short-term fluctuations in both debt and equity levels in the most recent quarters, the debt to equity ratio remains at a relatively moderate level consistent with prudent financial management practices. The transient spike in leverage during late 2020 stands out as an irregular event likely influenced by non-recurring factors.


Debt to Equity (including Operating Lease Liability)

United Parcel Service Inc., debt to equity (including operating lease liability) calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Current maturities of long-term debt, commercial paper and finance leases 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 2,131 1,268 1,564 1,811 2,623 2,382 3,749 4,405
Long-term debt and finance leases, excluding current maturities 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 19,784 20,838 21,027 21,916 22,031 23,336 23,199 24,196
Total debt 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 21,915 22,106 22,591 23,727 24,654 25,718 26,948 28,601
Current maturities of operating leases 720 733 699 683 694 709 664 673 668 621 560 562 579 580 552 556 548 560 560 534 526
Non-current operating leases 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 3,033 2,938 3,038 2,524 2,540 2,473 2,463 2,493
Total debt (including operating lease liability) 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 25,528 25,596 26,185 26,799 27,754 28,751 29,945 31,620
 
Equity for controlling interests 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 14,253 12,041 10,805 7,147 657 5,592 4,363 3,299
Solvency Ratio
Debt to equity (including operating lease liability)1 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 1.79 2.13 2.42 3.75 42.24 5.14 6.86 9.58
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
FedEx Corp. 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 1.51 1.75 1.83 1.95 1.97 1.78 1.78 1.81
Uber Technologies Inc. 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 0.77 0.78 0.67 0.70 0.76 0.94 0.88 0.65
Union Pacific Corp. 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 2.20 2.20 2.10 1.71 1.65 1.71 1.81 1.83
United Airlines Holdings Inc. 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 8.17 7.60 8.52 6.77 5.69 4.83 2.92 2.49

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity for controlling interests
= 25,594 ÷ 15,660 = 1.63

2 Click competitor name to see calculations.


The financial data reveals notable fluctuations and trends in leverage and equity over the observed periods. Total debt, inclusive of operating lease liabilities, generally exhibits a declining trend from early 2020 through late 2022, decreasing from $31.62 billion in March 2020 to about $23.52 billion by December 2022. However, starting in 2023, total debt levels fluctuate somewhat, peaking again around $26.7 billion in December 2023 before showing minor reductions towards early 2025, ending near $25.59 billion.

Equity for controlling interests increases markedly from March 2020 to late 2023. An initial low point in December 2020 (around $657 million) is followed by a strong and steady rise, reaching a peak of approximately $20.04 billion in March 2023. Subsequently, equity demonstrates a gradual decline through to the end of the series in March 2025, ending near $15.66 billion. This pattern reflects significant growth after mid-2020 but some diminution in equity value over the last observed periods.

The debt to equity ratio, which incorporates operating lease liabilities, experiences substantial volatility. In December 2020, the ratio spikes dramatically to 42.24, corresponding with a steep decline in equity during the same quarter. This ratio then rapidly declines through 2021, stabilizing between about 1.2 and 1.6 during 2022 to early 2025. The ratio’s stabilization at these levels indicates a more balanced capital structure with moderate leverage during the later periods, contrasting sharply with the extraordinary leverage noted at the end of 2020.

Total Debt (including operating lease liability)
Declined steadily from early 2020 through 2022; increased and fluctuated in 2023; then showed minor decline towards early 2025.
Equity for Controlling Interests
Experienced considerable growth post-December 2020 low, peaking in early 2023; followed by a gradual decline to March 2025.
Debt to Equity Ratio
Extremely high spike at December 2020 due to equity downturn; normalized and stabilized around 1.2 to 1.6 from 2022 onward, reflecting moderate leverage.

Overall, the data suggests a period of significant financial strain or restructuring at the end of 2020, characterized by extremely high leverage. Subsequently, the firm improved its equity base and reduced leverage to more sustainable levels. However, some deterioration in equity and slight increase in leverage is observable in the most recent quarters, which may warrant further monitoring in the future.


Debt to Capital

United Parcel Service Inc., debt to capital calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Current maturities of long-term debt, commercial paper and finance leases 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 2,131 1,268 1,564 1,811 2,623 2,382 3,749 4,405
Long-term debt and finance leases, excluding current maturities 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 19,784 20,838 21,027 21,916 22,031 23,336 23,199 24,196
Total debt 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 21,915 22,106 22,591 23,727 24,654 25,718 26,948 28,601
Equity for controlling interests 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 14,253 12,041 10,805 7,147 657 5,592 4,363 3,299
Total capital 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 36,168 34,147 33,396 30,874 25,311 31,310 31,311 31,900
Solvency Ratio
Debt to capital1 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 0.61 0.65 0.68 0.77 0.97 0.82 0.86 0.90
Benchmarks
Debt to Capital, Competitors2
FedEx Corp. 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 0.46 0.52 0.53 0.54 0.55 0.51 0.50 0.51
Uber Technologies Inc. 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 0.39 0.40 0.35 0.36 0.38 0.43 0.41 0.33
Union Pacific Corp. 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 0.68 0.68 0.67 0.62 0.61 0.62 0.63 0.64
United Airlines Holdings Inc. 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 0.88 0.87 0.88 0.85 0.83 0.80 0.69 0.65

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 21,369 ÷ 37,029 = 0.58

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals notable trends in the total debt, total capital, and debt to capital ratio over the observed periods.

Total Debt

Total debt exhibited a general decreasing trend from March 31, 2020, starting at 28,601 million US dollars, down to a low of 19,662 million US dollars by December 31, 2022. This decline indicates a progressive reduction in debt levels over nearly three years. However, from early 2023 onwards, the trend reversed slightly, with total debt increasing intermittently, reaching 22,264 million by December 31, 2023. The subsequent quarters through March 31, 2025, show fluctuations around the 21,000 to 22,000 million range, with a slight overall decline to 21,369 million at the end of the period. This suggests a stabilization phase after a period of debt reduction.

Total Capital

Total capital remained relatively stable with some volatility between 31,900 million and 25,311 million US dollars in 2020. From March 31, 2021, there was a consistent upward movement peaking at 42,226 million US dollars by March 31, 2023. After this peak, total capital experienced a gradual decline, hovering near 37,000 to 40,000 million US dollars through the final quarters observed. This pattern suggests capital growth until early 2023, followed by moderate contraction, possibly reflecting changes in equity, retained earnings, or other capital components.

Debt to Capital Ratio

The debt to capital ratio decreased significantly from 0.90 in March 2020 to a low of 0.50 by December 31, 2022, indicating a stronger capital structure with reduced reliance on debt funding relative to total capital. This improvement was aligned with the reduction in total debt and the increase in total capital over this period. Post December 2022, the ratio experienced a modest increase and fluctuated between 0.51 and 0.58 through March 31, 2025. This indicates a slight increase in leverage but maintaining a relatively moderate debt proportion compared to previous years. Overall, the firm appears to have improved its financial leverage profile substantially before stabilizing in recent years.

In summary, the data demonstrates a significant deleveraging trend from 2020 through late 2022, characterized by decreasing total debt and increasing total capital, resulting in a lower debt to capital ratio. Following this period, total debt levels and capital amounts stabilized with minor fluctuations, leading to a moderate increase in leverage but at a maintained prudent level. This suggests a financial strategy focused initially on debt reduction and capital strengthening, followed by a balanced approach to managing leverage in the later periods.


Debt to Capital (including Operating Lease Liability)

United Parcel Service Inc., debt to capital (including operating lease liability) calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Current maturities of long-term debt, commercial paper and finance leases 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 2,131 1,268 1,564 1,811 2,623 2,382 3,749 4,405
Long-term debt and finance leases, excluding current maturities 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 19,784 20,838 21,027 21,916 22,031 23,336 23,199 24,196
Total debt 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 21,915 22,106 22,591 23,727 24,654 25,718 26,948 28,601
Current maturities of operating leases 720 733 699 683 694 709 664 673 668 621 560 562 579 580 552 556 548 560 560 534 526
Non-current operating leases 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 3,033 2,938 3,038 2,524 2,540 2,473 2,463 2,493
Total debt (including operating lease liability) 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 25,528 25,596 26,185 26,799 27,754 28,751 29,945 31,620
Equity for controlling interests 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 14,253 12,041 10,805 7,147 657 5,592 4,363 3,299
Total capital (including operating lease liability) 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 39,781 37,637 36,990 33,946 28,411 34,343 34,308 34,919
Solvency Ratio
Debt to capital (including operating lease liability)1 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 0.64 0.68 0.71 0.79 0.98 0.84 0.87 0.91
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
FedEx Corp. 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 0.60 0.64 0.65 0.66 0.66 0.64 0.64 0.64
Uber Technologies Inc. 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 0.43 0.44 0.40 0.41 0.43 0.48 0.47 0.40
Union Pacific Corp. 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 0.69 0.69 0.68 0.63 0.62 0.63 0.64 0.65
United Airlines Holdings Inc. 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 0.89 0.88 0.89 0.87 0.85 0.83 0.75 0.71

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 25,594 ÷ 41,254 = 0.62

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals significant dynamics in the company’s debt and capital structure over the observed periods.

Total debt (including operating lease liability)
The total debt has shown a general declining trend from March 31, 2020, to December 31, 2022, decreasing from approximately $31.6 billion to $23.5 billion. This suggests a steady reduction in leverage during this timeframe. However, starting in the first quarter of 2023, total debt exhibited fluctuations, with periodic increases and decreases, reaching $25.6 billion by March 31, 2025. This fluctuation indicates a volatile approach to debt management in recent periods, possibly reflecting shifts in financing strategy or operational needs.
Total capital (including operating lease liability)
Total capital experienced initial volatility around 2020, with a notable dip in December 31, 2020, before generally increasing and peaking around March 31, 2023, at approximately $46.4 billion. Following this peak, capital values demonstrate a gradual decline toward $41.3 billion by March 31, 2025. The rise until 2023 indicates capital base expansion, possibly through equity issuance, retained earnings, or other financing sources, while the subsequent decline may indicate capital consumption or share repurchases.
Debt to capital ratio (including operating lease liability)
This ratio started extremely high at 0.91 in March 2020, reflecting a capital structure heavily reliant on debt. It improved substantially through December 2022, decreasing to 0.54, indicating a more balanced capital structure with reduced leverage risk. Post-2022, the ratio appears to stabilize but shows a slight upward trend, oscillating between 0.56 and 0.62, suggesting a moderate increase in leverage or a slowing of deleveraging efforts.

Overall, the company demonstrated strong deleveraging efforts between 2020 and 2022, supported by an expansion in total capital. However, in the subsequent years, both total debt and capital exhibited increased variability, with debt to capital ratio stabilizing at a moderately leveraged level. This pattern may reflect strategic adjustments to optimize the capital structure amid evolving business or market conditions. Monitoring these trends will be critical to assess future financial risk and capital efficiency.


Debt to Assets

United Parcel Service Inc., debt to assets calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Current maturities of long-term debt, commercial paper and finance leases 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 2,131 1,268 1,564 1,811 2,623 2,382 3,749 4,405
Long-term debt and finance leases, excluding current maturities 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 19,784 20,838 21,027 21,916 22,031 23,336 23,199 24,196
Total debt 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 21,915 22,106 22,591 23,727 24,654 25,718 26,948 28,601
 
Total assets 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 69,405 65,739 64,869 63,312 62,408 62,406 62,057 60,895
Solvency Ratio
Debt to assets1 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 0.32 0.34 0.35 0.37 0.40 0.41 0.43 0.47
Benchmarks
Debt to Assets, Competitors2
FedEx Corp. 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 0.25 0.28 0.29 0.30 0.30 0.28 0.27 0.27
Uber Technologies Inc. 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 0.24 0.25 0.22 0.23 0.23 0.23 0.24 0.19
Union Pacific Corp. 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 0.47 0.47 0.46 0.43 0.43 0.44 0.45 0.45
United Airlines Holdings Inc. 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 0.52 0.51 0.51 0.48 0.48 0.46 0.35 0.33

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 21,369 ÷ 68,466 = 0.31

2 Click competitor name to see calculations.


Total Debt Trends

Total debt exhibited a consistent downward trajectory from March 31, 2020, through December 31, 2022, decreasing from 28,601 million USD to 19,662 million USD. This trend indicates a concerted effort to reduce debt levels over nearly three years. However, starting in March 31, 2023, total debt began to rise again, reaching a peak of 22,264 million USD by December 31, 2023. Following this increase, debt values fluctuated but generally maintained a level in the range of approximately 21,200 to 22,200 million USD through March 31, 2025, suggesting a stabilization at a higher debt level relative to the 2022 trough.

Total Assets Trends

Total assets demonstrated a steady increase from March 31, 2020, reaching a peak of 72,189 million USD by March 31, 2023. Thereafter, total assets experienced some fluctuations but remained relatively stable, within a band between approximately 67,000 and 71,000 million USD until March 31, 2025. The overall pattern indicates asset growth over the first three years, followed by a period of modest volatility and stabilization in asset base.

Debt to Assets Ratio Analysis

The debt to assets ratio decreased significantly from 0.47 in March 31, 2020, to a low of approximately 0.28 in December 31, 2022, signaling an improvement in the company’s leverage and a strengthening balance sheet during this period. This decline aligns with the observed reduction in total debt alongside an increase in total assets. Beginning in March 31, 2023, the ratio rose slightly and fluctuated around 0.30 to 0.32 through March 31, 2025. This indicates a moderate increase in leverage relative to the low point but still maintains a lower level of indebtedness than that recorded in early 2020. Overall, the company appears to have improved its financial structure by reducing leverage substantially during 2020-2022, followed by a period of relative stability at a moderate leverage level thereafter.


Debt to Assets (including Operating Lease Liability)

United Parcel Service Inc., debt to assets (including operating lease liability) calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Current maturities of long-term debt, commercial paper and finance leases 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 2,131 1,268 1,564 1,811 2,623 2,382 3,749 4,405
Long-term debt and finance leases, excluding current maturities 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 19,784 20,838 21,027 21,916 22,031 23,336 23,199 24,196
Total debt 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 21,915 22,106 22,591 23,727 24,654 25,718 26,948 28,601
Current maturities of operating leases 720 733 699 683 694 709 664 673 668 621 560 562 579 580 552 556 548 560 560 534 526
Non-current operating leases 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 3,033 2,938 3,038 2,524 2,540 2,473 2,463 2,493
Total debt (including operating lease liability) 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 25,528 25,596 26,185 26,799 27,754 28,751 29,945 31,620
 
Total assets 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 69,405 65,739 64,869 63,312 62,408 62,406 62,057 60,895
Solvency Ratio
Debt to assets (including operating lease liability)1 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 0.37 0.39 0.40 0.42 0.44 0.46 0.48 0.52
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
FedEx Corp. 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 0.44 0.47 0.47 0.49 0.49 0.48 0.47 0.48
Uber Technologies Inc. 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 0.29 0.30 0.26 0.27 0.28 0.29 0.30 0.25
Union Pacific Corp. 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 0.49 0.49 0.48 0.45 0.45 0.46 0.47 0.47
United Airlines Holdings Inc. 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 0.60 0.60 0.59 0.57 0.57 0.55 0.45 0.44

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 25,594 ÷ 68,466 = 0.37

2 Click competitor name to see calculations.


Total Debt (Including Operating Lease Liability)
The total debt showed a general declining trend from March 2020 to December 2022, falling from $31,620 million to $23,521 million. This trend indicates a reduction in debt levels over this period. Starting in March 2023, the total debt increased again, peaking at $26,729 million in December 2023 before fluctuating slightly but remaining within the range of approximately $24,000 million to $26,500 million through March 2025.
Total Assets
Total assets experienced a steady upward movement from March 2020, beginning at $60,895 million, and rising to a peak of $72,189 million in March 2023. Post-peak, there was a mild decline and some fluctuations observed through March 2025, with asset values generally remaining around $68,000 million to $70,000 million.
Debt to Assets Ratio (Including Operating Lease Liability)
The debt to assets ratio consistently decreased from 0.52 in March 2020 to 0.33 in December 2022, reflecting an improvement in the company's leverage position with debt becoming a smaller proportion of total assets. Starting in early 2023, the ratio increased moderately to 0.38 by December 2023 and remained relatively stable around 0.37 through March 2025, indicating a slight increase in leverage relative to the earlier downtrend.

Financial Leverage

United Parcel Service Inc., financial leverage calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Total assets 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 69,405 65,739 64,869 63,312 62,408 62,406 62,057 60,895
Equity for controlling interests 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 14,253 12,041 10,805 7,147 657 5,592 4,363 3,299
Solvency Ratio
Financial leverage1 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 4.87 5.46 6.00 8.86 94.99 11.16 14.22 18.46
Benchmarks
Financial Leverage, Competitors2
FedEx Corp. 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 3.43 3.77 3.86 3.99 4.02 3.72 3.75 3.77
Uber Technologies Inc. 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 2.68 2.65 2.56 2.55 2.71 3.23 2.96 2.65
Union Pacific Corp. 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 4.49 4.48 4.34 3.80 3.68 3.70 3.86 3.89
United Airlines Holdings Inc. 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 13.56 12.76 14.49 11.84 9.99 8.74 6.45 5.63

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Financial leverage = Total assets ÷ Equity for controlling interests
= 68,466 ÷ 15,660 = 4.37

2 Click competitor name to see calculations.


The analysis of the financial data over the observed periods reveals several key trends and changes regarding the company's assets, equity, and financial leverage.

Total Assets
Total assets generally show a moderate upward trend from March 31, 2020, through December 31, 2023, with values increasing from approximately 60.9 billion US dollars to 70.8 billion US dollars. There is a slight fluctuation in some quarters, with a minor decline observed towards the latest periods ending March 31, 2025, where total assets decreased to approximately 68.5 billion US dollars. Despite these fluctuations, the overall level of total assets remains relatively stable, indicating sustained asset management.
Equity for Controlling Interests
Equity for controlling interests experienced significant growth particularly between March 31, 2020, and December 31, 2020, jumping from around 3.3 billion to a noticeably lower 657 million, which may indicate a data anomaly or a significant adjustment in that specific period. After this period, equity increased steadily, reaching a peak of about 20.0 billion by March 31, 2023. Following this peak, equity shows a gradual decline, falling to approximately 15.7 billion by March 31, 2025. This pattern reflects initial capital strengthening followed by a period of equity contraction, suggesting possible distributions, losses, or capital restructuring in the latter years.
Financial Leverage Ratio
The financial leverage ratio exhibits considerable variability. Initially, it is very high at 18.46 in March 2020, then declines sharply to below 5.0 by December 2021, indicating a reduction in reliance on debt relative to equity. There is a notable spike to 94.99 in December 2020, which is an outlier likely due to the temporary sharp decline or reporting irregularity in equity. After stabilizing, the leverage ratio remains relatively consistent in the range of approximately 3.5 to 4.4 from early 2022 through March 2025. This stabilization suggests the company has maintained a more balanced capital structure in recent periods.

In summary, the data indicate that total assets have been relatively stable with minor fluctuations, equity experienced initial volatility followed by growth and subsequent reduction, and financial leverage declined sharply from very high levels to a stable moderate range. These patterns imply efforts to strengthen the balance sheet and manage financial risk more conservatively in recent years, although some irregularities in the data may warrant further investigation for precise interpretation.


Interest Coverage

United Parcel Service Inc., interest coverage calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Net income 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 3,093 2,329 2,676 4,792 (3,347) 1,957 1,768 965
Add: Income tax expense 336 406 371 460 423 458 141 639 627 1,014 685 848 730 869 664 760 1,412 (941) 568 589 285
Add: Interest expense 222 229 230 212 195 207 199 191 188 182 177 171 174 173 177 167 177 175 176 183 167
Earnings before interest and tax (EBIT) 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 4,135 3,170 3,603 6,381 (4,113) 2,701 2,540 1,417
Solvency Ratio
Interest coverage1 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 24.91 12.99 12.33 10.56 3.63
Benchmarks
Interest Coverage, Competitors2
Uber Technologies Inc. 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 -1.20 -4.91 -1.89 -7.20 -14.24
Union Pacific Corp. 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 8.33 8.05 7.66 6.91 7.12
United Airlines Holdings Inc. 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 -0.62 -1.71 -4.00 -6.18 -7.89

Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Interest coverage = (EBITQ1 2025 + EBITQ4 2024 + EBITQ3 2024 + EBITQ2 2024) ÷ (Interest expenseQ1 2025 + Interest expenseQ4 2024 + Interest expenseQ3 2024 + Interest expenseQ2 2024)
= (1,745 + 2,356 + 2,140 + 2,081) ÷ (222 + 229 + 230 + 212) = 9.32

2 Click competitor name to see calculations.


The earnings before interest and tax (EBIT) demonstrate significant volatility over the observed periods, with a notable negative spike at the end of 2020, indicating an operational challenge or unusual event during that quarter. Following this decline, EBIT recovered strongly in early 2021, reaching peak levels, and subsequently experienced fluctuations but generally remained positive through 2025. The highest EBIT values occurred in the first half of 2021, after which there was a gradual downtrend with intermittent increases, culminating in lower yet still positive results toward the end of the observed period.

Interest expense shows relatively minor variation, maintaining a range primarily between 167 and 230 million USD, reflecting stable financing costs. Although there is a slight upward trend in interest expense over time, the changes are not pronounced, suggesting consistent debt servicing expenses without significant new borrowings or refinancing at different rates.

The interest coverage ratio reflects the company's ability to cover interest expenses from its operating earnings and shows a marked improvement beginning in late 2020. Initially, the ratio is missing for several quarters, but from the first quarter of 2021 onwards, it remains consistently above 9x, peaking significantly above 20x between late 2020 and early 2022. This peak aligns with the period of high EBIT and stable interest expense. Afterward, the ratio gradually declines but stays above 9x through the end of the data series, indicating sustained strong capacity to service interest payments despite some decline in operating earnings.

Overall, the data suggest a company that encountered a severe operational disruption at the end of 2020 but recovered effectively in 2021. Since then, while EBIT has shown variability and an overall moderate downtrend, interest expenses have remained steady, ensuring robust interest coverage and financial stability. The trends indicate a company managing interest obligations well despite fluctuations in operating profitability.

Earnings before interest and tax (EBIT)
Highly variable with a sharp negative dip in Q4 2020; post-crisis recovery with fluctuations but overall positive through 2025; early 2021 peak followed by gradual moderation.
Interest expense
Relatively stable with slight upward trend; ranges mostly between 167 to 230 million USD; suggests stable financing costs.
Interest coverage ratio
Unavailable initially; from Q1 2021 onwards consistently strong above 9x; peaked above 20x in 2021-2022; gradual decline afterward but maintains a comfortable level indicative of strong interest coverage capability.