United Parcel Service Inc. (NYSE:UPS)

Net fixed asset turnover

The net fixed asset turnover ratio demonstrated a gradual increase from 2.76 in March 2021, peaking at 3.01 in September 2022. After this peak, there was a consistent decline observed through the subsequent quarters, reaching 2.37 in September 2025. This pattern suggests an initial improvement in the efficiency with which fixed assets were utilized to generate sales, followed by a steady decrease indicating potentially reduced asset utilization or increased asset base relative to sales in later periods.

Net fixed asset turnover (including operating lease, right-of-use asset)

When including operating lease right-of-use assets, a similar trend is evident. The ratio rose from 2.52 in March 2021 to a high of 2.73 in September 2022, then declined steadily to 2.13 by September 2025. The inclusion of these assets consistently results in a slightly lower ratio compared to the net fixed asset turnover alone, but the trend mirrors the same rise and fall, indicating similar operational efficiency dynamics when operating lease assets are accounted for.

Total asset turnover

The total asset turnover ratio showed modest fluctuations over the time span analyzed. Starting at 1.41 in March 2021, it slightly increased to 1.45 by September 2021 and June 2022, followed by a period of decline and minor variability, reaching 1.25 in September 2025. This indicates some variability but overall a slight downward trend in the efficiency of total assets in generating revenue, potentially signaling slower growth in revenue relative to asset expansion or asset underutilization in recent quarters.

Equity turnover

The equity turnover ratio exhibited a pronounced downward trend from a high of 12.52 in March 2021 to a trough of approximately 4.8 in June 2023. After this decline, the ratio stabilized and experienced modest fluctuations around the 5.0 to 5.8 range through to September 2025. This significant initial decline suggests a substantial increase in equity base relative to sales or a reduction in sales relative to equity, with a later period of stabilization indicating more balanced utilization of equity in generating revenue.

The quarterly financial data reveals several notable trends in the company's operational and asset management performance over the analyzed periods.

Revenue Trends

Revenue figures demonstrate seasonal fluctuations with peaks generally occurring in the fourth quarter of each year, indicating typical year-end demand increases. The highest revenue within the observed timeframe was recorded at the end of 2021, reaching approximately 27,771 million US dollars. Subsequently, a decline is evident in the first three quarters of 2022, followed by a partial recovery towards the fourth quarter.

From 2023 onward, revenue shows a decreasing tendency in the early quarters, while the peak corresponding to the fourth quarter remains present but with lower overall values compared to 2021 and 2022. The most recent quarters up to the third quarter of 2025 illustrate a relatively stabilized revenue level slightly above 21,000 million US dollars, suggesting a more subdued growth environment or market conditions.

Property, Plant, and Equipment (Net)

The net value of property, plant, and equipment exhibits a steady upward trajectory over the entire period. Starting at 32,455 million US dollars at the beginning of 2021, the asset base increases consistently to approximately 37,743 million US dollars by the third quarter of 2025. This trend indicates sustained investment in fixed assets or a gradual appreciation in asset values. The absence of notable decreases suggests limited disposals or impairments in this asset category.

Net Fixed Asset Turnover Ratio

This ratio, which measures the efficiency in using fixed assets to generate revenue, shows a declining pattern over time. Starting from 2.76 in the first quarter of 2021, the ratio experienced a mild increase during the mid-2021 to early 2022 period, peaking around 3.01 in the third quarter of 2022.

After this peak, there is a continuous decrease through to the third quarter of 2025, falling to approximately 2.37. The decline in net fixed asset turnover suggests that revenue growth is not keeping pace with increases in fixed assets, potentially indicating diminishing asset utilization efficiency or structural changes in business operations. This could imply either excess capacity or challenges in translating asset investments into proportional revenue gains.

Overall, the data reflects consistent expansion in fixed assets, periodic fluctuations in revenue with a tendency toward stabilization at a lower level than peak periods, and a decreasing efficiency in asset use as measured by the net fixed asset turnover. These patterns warrant further examination of operational strategies and asset management to enhance revenue generation relative to asset investments.

The financial data exhibits several trends spanning from the first quarter of 2021 through the third quarter of 2025. These trends concern revenue, property, plant and equipment net values including operating lease right-of-use assets, and the net fixed asset turnover ratio.

Revenue

The revenue figures fluctuate over time, evidencing a pattern of periodic increases and decreases. Starting at approximately $22.9 billion, revenue peaked notably in the fourth quarter of 2021 near $27.8 billion, followed by a slight drop in early 2022 and subsequent quarterly oscillations. The revenue trend through 2023 and 2024 tends to show a decline in the earlier quarters followed by partial recoveries in the latter quarters of each year. This cyclical pattern suggests potential seasonality or external factors influencing business volume. By the third quarter of 2025, revenue levels appear to stabilize at approximately $21.4 billion, which is lower relative to the peak but consistent with some prior periods within the dataset.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment, including operating lease right-of-use assets, shows a general upward trend throughout the observed periods. Beginning near $35.5 billion in early 2021, this value steadily rises with minor fluctuations, crossing $41 billion around late 2023. This incremental increase suggests continuous investment or capitalization in fixed assets, possibly reflecting expansion, modernization, or acquisition of additional assets to support operations over time. The steady growth indicates a commitment to maintaining or enhancing operational capacity.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures the efficiency of the company in using its fixed assets to generate revenue, demonstrates a declining trend over the quarters analyzed. Initial values are around 2.52, with an upward movement until the third quarter of 2022, when it peaks near 2.73. Following this period, there is a noticeable and persistent decline down to approximately 2.13 by the third quarter of 2025. This decreasing ratio indicates that although property, plant, and equipment values increased, the revenue generated per dollar of these assets is diminishing, potentially pointing to reduced asset utilization efficiency or changes in operational dynamics.

The quarterly financial data indicates fluctuations in revenue over the examined periods, with observable seasonal and structural patterns. Beginning in early 2021, revenue demonstrated a rising trend, peaking notably in the fourth quarters, such as December 2021 and December 2022, which reflects stronger business activity in those periods. Subsequently, revenue declines were evident in the first quarters of the following years, with March 2023 and March 2024 showing lower values compared to the previous quarters. This cyclical pattern suggests seasonality influences the revenue streams.

In general, revenue values ranged from approximately 21,000 million to 27,700 million US dollars, with notable volatility in recent quarters. The most recent data through 2025 indicates a relatively stable yet lower revenue level compared to the peak periods, suggesting possible market saturation, competitive pressures, or operational adjustments.

Total assets increased steadily from the start of the data series in March 2021 until the end of 2022, showing growth from about 63,000 million to over 71,000 million US dollars. This upward trend stabilizes and fluctuates slightly in the subsequent years, maintaining levels generally between 67,000 million and 71,000 million. This indicates that the company sustained a significant asset base without drastic reductions, supporting its operational capability.

The total asset turnover ratio followed a declining trend over the time frame. Beginning at around 1.41–1.45 in 2021 and early 2022, the ratio gradually decreased to as low as approximately 1.25 by late 2025. This reduction suggests a diminishing efficiency in utilizing assets to generate revenue. The decline in asset turnover may point to either increased asset holdings that are not fully leveraged or relative reductions in revenue generation efficiency.

Overall, the financial data reveals a business with steady asset growth but facing challenges in maintaining revenue levels and asset utilization efficiency. Seasonal peaks in revenue highlight cyclical demand patterns, yet the declining asset turnover ratio calls attention to potential operational improvements needed to enhance asset productivity and drive sustained revenue growth.

Revenue Trends

Shows seasonal fluctuations with peaks in the fourth quarter each year.

Overall volatility with a tendency toward lower revenue levels in early quarters of recent years.

Values range approximately between 21,000 million to 27,700 million US dollars.

Total Assets

Steadily increased from about 63,000 million to above 71,000 million US dollars by end of 2022.

Subsequently stabilized with minor fluctuations around 67,000 to 71,000 million US dollars.

Represents consistent investment or maintenance of asset base.

Total Asset Turnover

Decreased from approximately 1.41–1.45 in early periods to around 1.25 by 2025.

Indicates declining efficiency in generating revenue from assets over time.

Suggests potential areas for improving asset management or revenue generation.

Revenue Trends

Revenue demonstrates a clear seasonal pattern with peaks generally occurring in the fourth quarter of each year. The highest revenue was observed in December 2021 at approximately 27.8 billion USD. Following this peak, there is a downward trend in the first three quarters of 2022 before rising again by the end of 2022. In 2023, revenues decline in the first three quarters to around 21 billion USD, followed by an increase in the last quarter reaching about 24.9 billion USD. A similar recurring pattern is observed in 2024 and 2025 with revenues bottoming in the early quarters and increasing by year-end. Despite the fluctuations, there is an overall slight decline in revenue values over the years, particularly when comparing equivalent quarters year-over-year.

Equity for Controlling Interests

Equity attributable to controlling interests has shown a consistent upward trend from Q1 2021 through Q4 2022, increasing from roughly 7.1 billion USD to nearly 19.8 billion USD. However, starting in 2023, equity levels began to decline steadily, decreasing to about 17.3 billion USD by the end of that year. This downward movement continues into 2024 and 2025, with equity decreasing further to approximately 15.8 billion USD by Q3 2025. The initial sharp increase followed by a gradual decline suggests a period of capital accumulation or retained earnings growth followed by a phase of equity reduction or distribution.

Equity Turnover Ratio

The equity turnover ratio, which measures revenue generated per unit of equity, has declined significantly from 12.52 in Q1 2021 to below 6 from 2022 onwards. After the steep initial drop through 2021, the ratio stabilizes in the range of approximately 4.8 to 6.0 between 2022 and 2025. A modest upward trend is observable in 2024 through 2025, where the ratio gradually increases from about 5.3 to 5.8, indicating a slight improvement in the efficiency of equity utilization in generating revenue during that period.

Insights and Summary

The financial data reveal that revenue exhibits a strong seasonality with consistent year-end peaks, but an overall slight downward trend over the examined period. Concurrently, equity for controlling interests increases significantly until late 2022, after which it begins to decline steadily. This decline in equity is accompanied by a reduced equity turnover ratio, reflecting a diminished ability to generate revenue relative to the equity base compared to earlier years. The slight recovery in equity turnover ratio in the most recent periods may indicate improving operational efficiency or adjustments in capital management. The interplay of these metrics suggests that the company is navigating a transitional phase impacting both its capital structure and revenue generation dynamics.