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-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).
The solvency position of the company exhibits a complex pattern over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Generally, leverage ratios demonstrate an increasing trend in the latter half of the period, while coverage ratios show a declining trend. These shifts warrant further investigation into the underlying drivers.
- Debt to Equity
- The debt to equity ratio generally decreased from 1.42 in March 2022 to 0.99 in December 2022. However, it began to rise again, reaching 1.57 in June 2025, indicating increasing reliance on debt financing relative to equity. The most recent quarter shows a slight decrease to 1.49.
- Debt to Equity (Including Operating Lease Liability)
- Similar to the standard debt to equity ratio, this metric decreased through December 2022, falling from 1.65 to 1.19. A subsequent upward trend is observed, peaking at 1.84 in June 2025 before moderating slightly to 1.76 in December 2025. The inclusion of operating lease liabilities consistently results in higher ratios, highlighting the impact of these obligations on the company’s capital structure.
- Debt to Capital
- The debt to capital ratio remained relatively stable between 0.59 and 0.50 from March 2022 to December 2022. It then experienced a gradual increase, reaching 0.61 in June 2025, before settling at 0.60 in December 2025. This suggests a moderate increase in the proportion of debt used to finance the company’s assets.
- Debt to Capital (Including Operating Lease Liability)
- This ratio mirrors the trend of the standard debt to capital ratio, with a similar initial decrease followed by a gradual increase. It reached 0.65 in June 2025, then decreased slightly to 0.64 in December 2025. Again, incorporating operating lease liabilities results in higher values, emphasizing their contribution to overall leverage.
- Debt to Assets
- The debt to assets ratio exhibited a slight decrease from 0.31 to 0.28 during 2022. It then stabilized around 0.30-0.32 for most of 2023 and 2024, before increasing to 0.35 in June 2025 and decreasing to 0.33 in December 2025. This indicates a modest increase in the proportion of assets financed by debt.
- Debt to Assets (Including Operating Lease Liability)
- This ratio follows a similar pattern to the standard debt to assets ratio, consistently reporting higher values due to the inclusion of operating lease liabilities. It increased from 0.36 in March 2022 to 0.38 in June 2025, then decreased to 0.39 in December 2025.
- Financial Leverage
- Financial leverage decreased from 4.55 in March 2022 to 3.59 in December 2022. It then fluctuated, increasing to 4.50 in December 2025. This suggests a generally increasing reliance on financial leverage over the period, particularly in the latter half.
- Interest Coverage
- The interest coverage ratio demonstrated a consistent decline throughout the analyzed period. Starting at 20.95 in March 2022, it decreased to 8.04 in December 2025. This indicates a weakening ability to cover interest expenses from earnings, potentially signaling increased financial risk. The most significant declines occurred between September 2022 and December 2025.
In summary, the company’s solvency position has shifted from a relatively strong position in early 2022 to a more leveraged position by the end of 2025. While debt levels have increased, the declining interest coverage ratio suggests a potential strain on the company’s ability to service its debt obligations. Continued monitoring of these trends is recommended.
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Debt Ratios
Coverage Ratios
Debt to Equity
United Parcel Service Inc., debt to equity calculation (quarterly data)
| 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, commercial paper and finance leases | 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 | 23,519) | 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 | 24,127) | 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 | 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 | 1.49 | 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. | 0.73 | 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. | 0.39 | 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. | 1.72 | 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. | 1.64 | 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-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 Q4 2025 Calculation
Debt to equity = Total debt ÷ Equity for controlling interests
= 24,127 ÷ 16,227 = 1.49
2 Click competitor name to see calculations.
The debt to equity ratio for the analyzed period demonstrates fluctuations, generally trending upwards over the observed timeframe. Initially, the ratio decreased from 1.42 in March 2022 to 0.99 by December 2022, indicating a strengthening equity position relative to debt. However, this trend reversed, with the ratio increasing to 1.57 by June 2025, suggesting a growing reliance on debt financing.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- A consistent decrease in the debt to equity ratio is evident during this period. Total debt decreased from US$21,881 million to US$19,662 million, while equity for controlling interests increased from US$15,416 million to US$19,786 million. This suggests improved financial leverage and a stronger balance sheet.
- Subsequent Increase (Mar 31, 2023 – Jun 30, 2025)
- From March 2023 onwards, the debt to equity ratio generally increased. While equity remained relatively stable, total debt experienced increases, particularly noticeable between March 2025 and June 2025, rising from US$21,369 million to US$24,740 million. This indicates a shift towards greater debt financing, potentially for investment or operational needs.
- Recent Stabilization
- The rate of increase in the debt to equity ratio appears to moderate towards the end of the period, decreasing slightly from 1.57 in June 2025 to 1.49 in December 2025. This could indicate a deliberate effort to control debt levels or a natural consequence of business cycles.
- Quarterly Volatility
- While the overall trend is upward from 2023, quarterly fluctuations are present. For example, the ratio increased from 1.11 in March 2023 to 1.29 in December 2023, then decreased to 1.18 in March 2024, before increasing again. These fluctuations suggest sensitivity to short-term financial decisions and market conditions.
Overall, the observed pattern suggests a transition from a period of decreasing financial leverage to one of increasing leverage. The recent increase in the debt to equity ratio warrants further investigation to determine the underlying drivers and potential implications for the company’s financial health.
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Debt to Equity (including Operating Lease Liability)
United Parcel Service Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current maturities of long-term debt, commercial paper and finance leases | 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 | 23,519) | 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 | 24,127) | 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 | 763) | 742) | 724) | 720) | 733) | 699) | 683) | 694) | 709) | 664) | 673) | 668) | 621) | 560) | 562) | 579) | |||||
| Non-current operating leases | 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) | 28,590) | 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 | 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 | 1.76 | 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. | 1.33 | 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. | 0.45 | 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. | 1.76 | 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. | 2.03 | 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-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 Q4 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity for controlling interests
= 28,590 ÷ 16,227 = 1.76
2 Click competitor name to see calculations.
The debt to equity ratio, inclusive of operating lease liabilities, demonstrates a fluctuating pattern over the observed period. Initially, the ratio decreased from 1.65 in March 2022 to 1.19 in December 2022, indicating a strengthening equity position relative to debt. Subsequently, the ratio experienced an increase, peaking at 1.85 in September 2023, before declining to 1.76 by December 2025.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- From the first quarter of 2022 through the end of the year, the debt to equity ratio exhibited a consistent downward trend. This suggests that equity growth outpaced the increase in debt, potentially due to profitability or capital raising activities. The most significant decrease occurred between September and December 2022.
- Subsequent Increase (Jan 1, 2023 – Sep 30, 2023)
- Beginning in March 2023, the ratio began to rise, reaching its highest point in September 2023. This increase suggests a greater reliance on debt financing or a decrease in equity, potentially due to share repurchases, losses, or dividend payments. The increase from June to September 2023 was particularly notable.
- Recent Stabilization and Slight Decline (Oct 1, 2023 – Dec 31, 2025)
- Following the peak in September 2023, the ratio experienced a moderate decline, stabilizing around the 1.7 to 1.8 range. While fluctuations persist, the overall trend suggests a leveling off of the debt to equity position. The ratio decreased from 1.85 in September 2023 to 1.76 in December 2025.
The observed fluctuations warrant further investigation into the underlying drivers of both debt and equity changes. The increase in debt, particularly in 2023, should be examined in the context of investment activities and overall financial performance. The ratio consistently remains above 1.0 throughout the period, indicating that debt financing represents a significant portion of the company’s capital structure.
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Debt to Capital
United Parcel Service Inc., debt to capital calculation (quarterly data)
| 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, commercial paper and finance leases | 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 | 23,519) | 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 | 24,127) | 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 | 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 | 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 | 0.60 | 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. | 0.42 | 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. | 0.28 | 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. | 0.63 | 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. | 0.62 | 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-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 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 24,127 ÷ 40,354 = 0.60
2 Click competitor name to see calculations.
The debt to capital ratio for the analyzed period demonstrates a generally stable, yet fluctuating, trend. Initially, the ratio decreased from 0.59 in March 2022 to 0.50 in December 2022, indicating a decreasing reliance on debt financing relative to total capital. Subsequently, the ratio experienced an increase, peaking at 0.57 in June 2023 and remaining around that level through December 2023. A slight decrease was observed in the first half of 2024, followed by a rise to 0.61 in September 2024, before settling at 0.60 by December 2025.
- Overall Trend
- The ratio generally remained within a range of 0.50 to 0.61 throughout the analyzed period. While there was an initial decline, the ratio largely stabilized and then increased slightly towards the end of the period. This suggests a moderate shift towards increased debt financing relative to capital over the latter half of the observation window.
- Short-Term Fluctuations
- A notable decrease in the debt to capital ratio occurred between March 2022 and December 2022. This could be attributed to factors such as increased equity, debt repayment, or a combination of both. The subsequent increase from early 2023 through late 2024 suggests a potential increase in debt levels or a decrease in total capital, or both. The stabilization in late 2025 indicates a potential pause in this trend.
- Recent Performance
- The ratio’s movement in the most recent quarters (March 2024 – December 2025) shows a slight increase followed by stabilization. The ratio moved from 0.54 in March 2024 to 0.60 in December 2025. This suggests a recent, albeit moderate, increase in the proportion of debt used to finance the company’s assets and operations.
The observed fluctuations warrant further investigation to determine the underlying drivers, such as changes in financing strategies, capital structure, or overall business performance. The consistent presence of debt financing, as indicated by the ratio remaining above 0.50 throughout the period, suggests a continued reliance on debt as a component of the company’s capital structure.
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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)
| 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, commercial paper and finance leases | 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 | 23,519) | 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 | 24,127) | 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 | 763) | 742) | 724) | 720) | 733) | 699) | 683) | 694) | 709) | 664) | 673) | 668) | 621) | 560) | 562) | 579) | |||||
| Non-current operating leases | 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) | 28,590) | 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 | 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) | 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 | 0.64 | 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 | 0.58 | 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. | 0.31 | 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. | 0.64 | 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 | 0.69 | 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-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 Q4 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 28,590 ÷ 44,817 = 0.64
2 Click competitor name to see calculations.
The Debt to Capital ratio, inclusive of operating lease liabilities, exhibits a generally stable pattern with some fluctuation over the observed period spanning from March 31, 2022, to December 31, 2025. Initial values indicate a gradual decrease followed by a period of relative stability and then an increase towards the end of the analyzed timeframe.
- Initial Decreasing Trend (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the ratio decreased from 0.62 to 0.54. This suggests a strengthening of the capital structure relative to debt during this period, potentially due to increased equity or a reduction in debt obligations. The decline, while present, was not precipitous, indicating a measured improvement.
- Period of Stability (Mar 31, 2023 – Dec 31, 2023)
- Following the decline, the ratio stabilized between 0.56 and 0.61 from March 31, 2023, through December 31, 2023. This suggests a period where the relationship between debt and capital remained relatively consistent, with no significant shifts in either component.
- Subsequent Increase (Mar 31, 2024 – Dec 31, 2025)
- From March 31, 2024, the ratio began to increase, reaching 0.65 by June 30, 2025, before slightly decreasing to 0.64 by December 31, 2025. This indicates a growing reliance on debt financing relative to capital. The increase could be attributed to new debt issuance, a decrease in equity, or a combination of both. The final slight decrease suggests a potential stabilization or minor adjustment in the capital structure at the end of the period.
- Overall Range
- Throughout the entire period, the ratio fluctuated within a range of 0.54 to 0.65. This suggests that, while there were periods of increase and decrease, the overall leverage remained within a defined band. The ratio consistently remained below 0.7, which could be interpreted as a moderate level of debt relative to capital.
The observed fluctuations warrant further investigation into the underlying drivers of changes in both total debt and total capital. Understanding the specific factors contributing to these movements is crucial for a comprehensive assessment of the company’s financial health and risk profile.
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Debt to Assets
United Parcel Service Inc., debt to assets calculation (quarterly data)
| 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, commercial paper and finance leases | 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 | 23,519) | 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 | 24,127) | 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 | 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 | 0.33 | 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. | 0.23 | 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. | 0.17 | 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. | 0.46 | 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. | 0.33 | 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-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 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 24,127 ÷ 73,090 = 0.33
2 Click competitor name to see calculations.
The debt-to-assets ratio for the analyzed period demonstrates a generally stable pattern with some fluctuation. Initially, the ratio decreased from 0.31 in March 2022 to 0.28 by December 2022, indicating a slight improvement in the company’s solvency position. This trend reversed in the following quarters, with the ratio increasing to 0.32 by June 2024, before decreasing slightly to 0.30 in December 2024. A more pronounced increase is observed in the first half of 2025, peaking at 0.35 in September 2025, before receding to 0.33 by the end of the analyzed period.
- Overall Trend
- The debt-to-assets ratio generally remained within a relatively narrow band between 0.28 and 0.32 for most of the period. However, the latter portion of the period, specifically from March 2024 through September 2025, shows a more noticeable upward trend, suggesting an increasing reliance on debt financing relative to assets.
- Short-Term Fluctuations
- A minor decrease in the ratio occurred throughout 2022, potentially due to asset growth outpacing debt accumulation or active debt reduction. The subsequent stabilization and then increase from 2023 onwards suggest a shift in financial strategy or external factors influencing borrowing and asset levels.
- Recent Developments (2024-2025)
- The increase to 0.35 in September 2025 warrants attention. This represents the highest point in the observed period and could indicate increased financial risk. The slight decrease in December 2025 offers a minor offset, but continued monitoring is advisable to determine if this is a temporary fluctuation or the beginning of a sustained upward trend.
- Comparison to Initial Period
- The ratio in December 2025 (0.33) is moderately higher than the ratio in March 2022 (0.31). This indicates a moderate increase in leverage over the analyzed timeframe. While not drastic, this change should be considered in the context of the company’s overall financial health and industry benchmarks.
In summary, the debt-to-assets ratio suggests a reasonably stable financial structure for much of the period, with a recent trend towards increased leverage. Further investigation into the drivers behind the increases in debt and asset composition during the latter part of the period would be beneficial for a more comprehensive assessment.
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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)
| 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, commercial paper and finance leases | 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 | 23,519) | 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 | 24,127) | 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 | 763) | 742) | 724) | 720) | 733) | 699) | 683) | 694) | 709) | 664) | 673) | 668) | 621) | 560) | 562) | 579) | |||||
| Non-current operating leases | 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) | 28,590) | 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 | 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 | 0.39 | 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. | 0.43 | 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. | 0.20 | 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. | 0.47 | 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. | 0.41 | 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-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 Q4 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 28,590 ÷ 73,090 = 0.39
2 Click competitor name to see calculations.
The debt to assets ratio, including operating lease liabilities, exhibits a generally stable pattern with some fluctuation over the observed period. Initially, the ratio decreased from 0.36 in March 2022 to 0.33 by December 2022. Subsequently, it increased to 0.38 in December 2023 before experiencing a slight decrease to 0.37 in March 2024. A more pronounced increase is then observed, reaching 0.41 in June and September 2025, before decreasing slightly to 0.39 by the end of 2025.
- Overall Trend
- The ratio generally remained within a range of 0.33 to 0.38 for the majority of the period, indicating a relatively consistent level of financial leverage. However, the latter part of the period shows a clear upward trend, suggesting increasing reliance on debt financing relative to assets.
- Short-Term Fluctuations
- A minor decrease in the ratio occurred throughout 2022, potentially reflecting asset growth outpacing debt accumulation. The subsequent increase in 2023 and early 2024 could be attributed to increased borrowing or a decrease in asset values. The more significant increase in the ratio during 2025 warrants further investigation to determine the underlying causes, such as substantial debt issuance or asset disposals.
- Recent Developments
- The ratio reached its highest point of 0.41 in June and September 2025. While decreasing slightly to 0.39 by December 2025, it remains at the upper end of its historical range. This suggests a potential shift in the company’s capital structure towards greater leverage.
The observed fluctuations in the debt to assets ratio should be considered in conjunction with other solvency and profitability metrics to gain a comprehensive understanding of the company’s financial health. Further analysis should focus on the drivers behind the recent increase in leverage and its potential implications for future financial performance.
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Financial Leverage
United Parcel Service Inc., financial leverage calculation (quarterly data)
| 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 | 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 | 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 | 4.50 | 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. | 3.12 | 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. | 2.29 | 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. | 3.77 | 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. | 5.00 | 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-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 Q4 2025 Calculation
Financial leverage = Total assets ÷ Equity for controlling interests
= 73,090 ÷ 16,227 = 4.50
2 Click competitor name to see calculations.
Financial leverage, as indicated by the ratio of total assets to equity for controlling interests, exhibits a fluctuating pattern over the observed period. Initially, the ratio decreased from 4.55 in March 2022 to 4.10 in September 2022, suggesting a reduction in the company’s reliance on financial leverage. This trend reversed in the subsequent quarters, increasing to 4.09 by December 2022.
- Overall Trend
- The financial leverage ratio generally remained within a relatively narrow band between 3.50 and 4.55 throughout the analyzed timeframe. A slight upward trend is discernible from the beginning of the period to the end, with the ratio concluding at 4.50 in December 2025, mirroring the initial value in March 2022.
A notable decrease in the ratio occurred between September 2022 and December 2022, followed by a subsequent increase. The period from March 2023 to September 2023 showed relative stability, fluctuating between 3.51 and 3.67. A more pronounced increase was observed from September 2023 to March 2025, rising from 3.67 to 4.37. The final two quarters of the period show a slight stabilization around 4.50.
- Recent Fluctuations
- The most recent quarters (March 2024 – December 2025) demonstrate a gradual increase in financial leverage. This suggests a potential shift in the company’s capital structure, possibly involving increased debt financing or a decrease in equity. The consistency of the ratio at 4.50 in the final two quarters may indicate a stabilization of this leverage.
The observed fluctuations in financial leverage warrant further investigation to determine the underlying drivers. Changes in asset levels, equity positions, and debt financing strategies are all potential contributing factors. The increase in leverage towards the end of the period could indicate increased risk, but also potentially higher returns if assets are utilized effectively.
- Equity Impact
- While the financial leverage ratio is the primary focus, the accompanying equity values suggest a generally increasing trend until December 2022, followed by a decline and subsequent stabilization. This interplay between asset and equity changes is crucial in understanding the observed leverage patterns.
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Interest Coverage
United Parcel Service Inc., interest coverage calculation (quarterly data)
| 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 | 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 | 581) | 296) | 379) | 336) | 406) | 371) | 460) | 423) | 458) | 141) | 639) | 627) | 1,014) | 685) | 848) | 730) | |||||
| Add: Interest expense | 266) | 291) | 238) | 222) | 229) | 230) | 212) | 195) | 207) | 199) | 191) | 188) | 182) | 177) | 171) | 174) | |||||
| Earnings before interest and tax (EBIT) | 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 | 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. | 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. | 8.00 | 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. | 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-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 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= (2,638 + 1,898 + 1,900 + 1,745)
÷ (266 + 291 + 238 + 222)
= 8.04
2 Click competitor name to see calculations.
The interest coverage ratio exhibits a clear declining trend over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially strong, the ratio demonstrates a consistent reduction in the company’s ability to meet its interest obligations from earnings before interest and taxes.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The interest coverage ratio began at 20.95 and peaked at 22.06. This indicates a robust capacity to cover interest expenses with operating income during this timeframe. The ratio remained relatively stable, fluctuating within a narrow range, suggesting consistent earnings performance relative to interest obligations.
- Transition Phase (Mar 31, 2023 – Sep 30, 2023)
- A noticeable downward trend commenced in the first half of 2023, with the ratio decreasing from 20.44 to 15.44. This decline suggests a weakening in the company’s earnings relative to its interest expense. The reduction is more pronounced in the third quarter of 2023, potentially indicating a specific operational or financial challenge during that period.
- Accelerated Decline (Dec 31, 2023 – Dec 31, 2025)
- The rate of decline accelerated from December 2023 onwards. The ratio fell from 11.92 to 8.04 over the subsequent two years. This suggests increasing pressure on earnings, potentially due to rising interest expenses or decreasing profitability. The ratio stabilizes somewhat in the final period, but remains significantly lower than the levels observed in 2022. The final value of 8.04 indicates that earnings are only eight times greater than interest expense, representing a considerably reduced margin of safety.
Throughout the period, interest expense has generally increased, contributing to the declining interest coverage ratio. While EBIT experienced fluctuations, it did not consistently offset the rise in interest expense, resulting in the observed trend. The consistent decrease in the ratio warrants further investigation into the underlying drivers of both earnings and interest expense.
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