United Parcel Service Inc. (NYSE:UPS)

The financial ratios demonstrate variations in operational efficiency and asset utilization over the analyzed periods.

Net Fixed Asset Turnover

This ratio shows a generally declining trend from its peak around the end of 2021. Initially increasing from 2.62 to a high of approximately 3.01, it gradually decreased to 2.39 by mid-2025. This decline suggests reduced efficiency in generating revenue from fixed assets over time.

Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset

The pattern mirrors the net fixed asset turnover but at slightly lower values, peaking near 2.73 at the end of 2021 and then declining steadily to about 2.17 in mid-2025. The inclusion of operating leases and right-of-use assets indicates a consistent decrease in leveraging these leased assets for revenue generation over the period.

Total Asset Turnover

This ratio remained relatively stable with minor fluctuations. Starting near 1.36, it increased moderately to about 1.45 by the end of 2021, then experienced a slight downward drift stabilizing around 1.27–1.33 towards mid-2025. These figures suggest a steady, though slightly diminishing, capability to generate revenue from total assets.

Equity Turnover

There is a notable sharp decline from an exceptionally high value of 128.81 early in the data to single-digit figures in subsequent quarters, stabilizing around the 5 to 6 range for the remainder of the period. This extreme initial value may indicate a data anomaly or an extraordinary event. Afterward, the ratio gradually increased from approximately 5 to about 5.80 by mid-2025, reflecting a moderate improvement in generating revenue relative to equity over the later periods.

Overall, the company exhibits a decrease in fixed asset efficiency, stable total asset utilization, and a normalization and gradual improvement in equity turnover following an initial outlier. These trends may reflect changes in asset management strategies, leasing practices, or capital structure adjustments during the timeframe.

Revenue Trends

Revenue exhibited a fluctuating pattern over the periods analyzed. Initially, revenue rose from 18,035 million USD in March 2020 to a peak of 27,771 million USD in December 2021. Following this peak, the revenue showed a declining trend through 2023, dropping to 21,061 million USD in September 2023. However, a recovery began in the last quarter of 2023, with revenue reaching 25,301 million USD by December 2024 before declining again in the first half of 2025.

Property, Plant and Equipment, Net (PP&E)

The net value of property, plant and equipment demonstrated a steady and consistent increase throughout the period. Starting at 30,908 million USD in March 2020, PP&E rose incrementally, reaching 37,711 million USD by June 2025. This continuous growth suggests ongoing capital investment or asset acquisition during the timeframe analyzed.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures revenue earned per unit of fixed assets, showed an improving trend from 2.62 in September 2020 to a peak of 3.01 in December 2021. After this peak, it began to decline steadily, reaching 2.39 by June 2025. This indicates that although the company was initially generating more revenue per unit of fixed assets, efficiency decreased later possibly due to slowing revenue growth relative to asset base expansion.

Overall Insights

The data presents a scenario of rising fixed asset investment accompanied by volatile revenue performance. Peak efficiency in asset utilization occurred around late 2021, coinciding with the highest revenue figures. Post-2021, while the asset base continued to grow, revenue faced downward pressure, leading to decreased turnover ratios. This pattern may imply challenges in maintaining revenue growth proportional to asset investments in the latest periods.

The financial data over the analyzed periods reveals several important trends relating to revenue, property, plant and equipment (net), and net fixed asset turnover for the company.

Revenue Trends

Revenue exhibited fluctuating behavior across the quarters. Starting from $18,035 million in March 2020, revenue increased steadily reaching $24,896 million by December 2020. However, post this peak, there were periods of both decline and growth; notable decreases occurred in quarters such as March 2021 ($22,908 million) through September 2021 ($23,184 million), followed by a resurgence towards December 2021 ($27,771 million). This volatility continued in subsequent years where periods of decline in early quarters (e.g., March 2023: $22,925 million) were often followed by recovery at year-end (December 2023: $24,917 million). The general pattern suggests seasonality and variability in revenue generation, with revenue fluctuating between approximately $21 billion and $27 billion most quarters until a mild tapering to about $21.5 billion by mid-2025.

Property, Plant and Equipment (Net)

The net value of property, plant, and equipment, which includes right-of-use assets from operating leases, shows a gradual and consistent upward trend throughout the periods. Starting at approximately $33,949 million in March 2020, this asset base expanded steadily to reach approximately $41,690 million by June 2025. This growth highlights ongoing investments in fixed assets and possibly reflects strategic capacity expansion or modernization efforts to support operations. The steady increase suggests a stable capital expenditure pattern without abrupt changes or divestitures.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

The net fixed asset turnover ratio, which measures how effectively the company generates revenue from its fixed assets, indicates a declining trend over time. Early in the series (starting around the third quarter of 2020), the ratio was approximately 2.4 and gradually increased to a peak of about 2.73 in the last quarter of 2021. Toward the later periods, this ratio declined consistently, reaching approximately 2.17 by mid-2025. This declining trend implies a reduction in efficiency with which the company uses its fixed asset base to produce revenue. Despite growth in fixed asset investment, the corresponding revenue generation relative to these assets has weakened, which could point to asset under-utilization or increasing capital intensity in operations.

Overall, the data indicates that while the company has invested heavily in expanding its asset base, revenue has remained somewhat volatile and has not shown corresponding proportional increases. Consequently, asset utilization efficiency has declined over the period. This combination suggests a need for management to focus on improving operational efficiency and optimizing asset deployment to support revenue growth more effectively.

The revenue exhibits a generally cyclical pattern with fluctuations observed on a quarterly basis. Starting from approximately $18,035 million in March 2020, it shows a rising trend through 2020 and peaks in December 2021 at $27,771 million. Following this peak, revenue declines during the first three quarters of 2023, reaching around $21,061 million in September 2023, before rising again towards the end of 2024, showing an amount of $25,301 million in December 2024, and then decreasing in the first two quarters of 2025.

Total assets remain relatively stable, fluctuating within a narrow range. The assets increased slightly from about $60,895 million in March 2020 to peak around $72,189 million in March 2023. After this peak, total assets showed minor declines but generally maintained levels above $67,000 million through mid-2025.

The total asset turnover ratio, which measures efficiency in using assets to generate revenue, demonstrates a moderate downward trend across the timeframe. Beginning at approximately 1.36 in late 2020, the ratio increased marginally in subsequent quarters before peaking near 1.45 at the end of 2022. From early 2023 onward, it gradually declined to levels around 1.27 by mid-2025. This decline suggests a slight decrease in asset utilization efficiency over the most recent periods.

Overall, the data indicate a period of growth in revenue culminating near the end of 2021 and late 2024, accompanied by stable but slightly increasing total assets. The efficiency in asset turnover showed improvement up to late 2022 but has declined modestly in the following years. These trends highlight variations in demand and operational efficiency across different quarters, with recent years showing some pressures on both revenue generation and asset utilization.

The quarterly financial data reveals several key trends in revenue, equity for controlling interests, and equity turnover ratios over the observed periods.

Revenue

Revenue showed a generally cyclical pattern with fluctuations across quarters and years. Initially, from March 2020 to December 2020, revenue increased from 18,035 million USD to a peak of 24,896 million USD. Following this, there was a moderate decline and stabilization in early 2021, ranging between approximately 22,000 and 27,700 million USD by year-end 2021.

In 2022, revenue maintained a similar pattern, fluctuating between about 24,161 million USD and 27,033 million USD. However, starting 2023, a decline is visible in the first three quarters, with revenues dropping to just above 21,000 million USD. A recovery trend appears at the end of 2023 and into 2024, with a rise to over 25,000 million USD in December 2024.

The most recent quarters of 2025 show a slight downturn again, with revenue figures moving back towards approximately 21,500 million USD, suggesting ongoing variability in revenue generation.

Equity for Controlling Interests

Equity values generally trended upward from March 2020 through December 2022, starting at 3,299 million USD and reaching a high of 19,786 million USD.

After this peak in late 2022, equity stabilized and slightly declined through 2023 and into 2024, dropping gradually to a range between approximately 15,660 and 17,000 million USD. The latest figures for mid-2025 indicate a small rebound to roughly 15,750 million USD, which may suggest a recent stabilization after prior declines.

Equity Turnover Ratio

The equity turnover ratio data starts from a very high point at 128.81 in December 2020, which appears to be an outlier compared to subsequent values.

From March 2021 onwards, the ratio settles to a much lower scale, ranging roughly between 4.8 and 6 throughout the remainder of the period.

Within this stable range, a gradual decreasing trend is evident from 6.83 in early 2021 to a low near 4.8 by late 2023, followed by a slight upward movement back towards values above 5.7 by mid-2025. This suggests a modest improvement in asset utilization relative to equity in more recent quarters.

In summary, the financial metrics indicate fluctuating revenue with some recovery phases, equity growth up to late 2022 followed by moderate decline and stabilization, and an equity turnover ratio stabilizing at moderate levels after an anomalous peak in 2020. These trends highlight a period of volatility and adjustment, with signs of operational efficiency improving slightly towards the latest periods analyzed.