United Parcel Service Inc. (NYSE:UPS)

Net Fixed Asset Turnover

The net fixed asset turnover ratio begins reporting from the quarter ending March 31, 2020, showing an upward trend from 2.62 to a peak of 3.01 by December 31, 2021. Thereafter, a consistent decline is observed, reaching 2.44 by March 31, 2025. This pattern indicates an initial improvement in the efficiency with which the company utilizes its fixed assets to generate revenue, followed by a gradual decrease in asset utilization efficiency over the later periods.

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

This adjusted net fixed asset turnover ratio follows a slightly lower trajectory than the unadjusted ratio over the same timeframe. From 2.4 at the first reporting quarter, it climbs to 2.73 through December 31, 2021, then shows a steady decline to 2.2 by March 31, 2025. The trend closely mirrors that of the standard net fixed asset turnover ratio, indicating similar dynamics when incorporating operating leases into asset base considerations.

Total Asset Turnover

Total asset turnover rises moderately from 1.36 on March 31, 2020, to a high of 1.45 by December 31, 2021. Following this apex, it experiences minor volatility but on average declines gradually, registering at 1.33 by the final quarter. Overall, the efficiency in using total assets to generate sales peaked late in 2021 and has softened modestly since then.

Equity Turnover

The equity turnover ratio presents a markedly different pattern, with an exceptionally high value of 128.81 in March 31, 2020, which precipitously drops to 7.84 by December 31, 2020. Subsequently, the ratio shows a declining trend until December 31, 2022, reaching 5.07, followed by a relatively stable phase with minor fluctuations, rising slightly toward the end to 5.81 by March 31, 2025. The initial extreme value suggests either an anomaly or specific financial event impacting equity levels early in the period, whereas the later values indicate steadier asset usage relative to equity.

The financial data reveals several notable trends over the analyzed periods, particularly concerning revenue, property plant and equipment (PP&E) net values, and net fixed asset turnover ratios.

Revenue Trends

Revenue exhibits a fluctuating pattern with periodic increases and decreases. Initial figures start at approximately $18,035 million in March 2020, rising steadily to a peak near $27,771 million by December 2021. Following this peak, revenue declines to $21,546 million by March 2025, showing intermittent recovery attempts. The fluctuations likely reflect external market conditions and operational adjustments affecting sales volume or pricing.

Property, Plant and Equipment, Net

Net property, plant, and equipment values show a steady upward trend throughout the period. Beginning at $30,908 million in March 2020, the net PP&E increases consistently to about $37,250 million by March 2025. This suggests ongoing investment in fixed assets, highlighting a possible expansion or modernization strategy in physical capital over this timeframe.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio starts at 2.62 around September 2020 and exhibits an overall declining trend thereafter. The ratio peaks at 3.01 by December 2021, indicating efficient utilization of fixed assets at that time. However, post-peak, the ratio experiences a gradual decrease, falling to approximately 2.44 by March 2025. This decline signals a reduction in revenue generated per unit of net fixed assets, possibly due to slowing revenue growth or increasing asset base outpacing revenue gains.

In summary, while revenue has demonstrated volatility with a general peak around late 2021 followed by decline, the net PP&E has steadily expanded, suggesting capital investments have continued without immediate corresponding revenue growth. The decreasing net fixed asset turnover ratio reinforces this observation, indicating that asset efficiency in generating revenue has diminished in recent periods. These patterns may call for detailed operational reviews to improve asset utilization and sustain revenue growth.

The revenue figures exhibit a cyclical pattern with marked fluctuations over the reported periods. Initially, revenue increased from $18,035 million in March 2020 to a peak of $27,771 million in December 2021, reflecting growth over this time frame. However, subsequent quarters show a decline and variability, with revenue reaching $21,546 million in March 2025, indicating a downward trend compared to the peak period.

Investments in property, plant, and equipment (PP&E), including operating lease right-of-use assets, show a steady increase throughout the periods assessed. Beginning at $33,949 million in March 2020, this asset category rose continuously to approximately $41,265 million by March 2025. This steady growth suggests ongoing capital allocation towards fixed assets and leased infrastructure.

The net fixed asset turnover ratio, which indicates the efficiency of using fixed assets to generate revenue, has experienced a gradual decline from 2.6 in December 2020 to around 2.2 by March 2025. This downward trend implies decreasing efficiency in the utilization of fixed assets to produce revenue over time, possibly due to the increasing asset base not being matched proportionally by revenue growth.

Revenue Trends

Exhibits growth until late 2021 followed by fluctuating declines, with a notable decrease by early 2025.

Property, Plant, and Equipment

Consistently incremented, reflecting steady capital investments and expansion of asset base.

Net Fixed Asset Turnover

Demonstrates a downward trend post-2020, suggesting diminishing returns on asset investments and potential overcapacity or underutilization.

The revenue exhibited fluctuations over the reported quarters, showing a general pattern of seasonal variations with peaks commonly occurring in the fourth quarter of each year. There was a notable increase in revenue from March 2020 to December 2020, followed by a decline in the first half of 2021 and a recovery towards the end of that year. The cycle of decline and recovery repeated in 2022 and 2023, with revenue achieving relatively higher peaks in the fourth quarters of those years. However, by the first quarter of 2025, revenue showed a decrease compared to the previous corresponding quarters, indicating potential challenges in maintaining growth.

Total assets demonstrated a relatively steady increase from March 2020 through March 2023, suggesting continued investment or accumulation of resources. After peaking around March 2023, total assets showed slight declines and fluctuations throughout 2023 and into 2025, reflecting possible asset management adjustments or disposals. Despite these fluctuations, the asset base remained generally stable above the 68,000 million US$ mark during the later periods.

The total asset turnover ratio, available from December 2020 onward, reflected the efficiency with which the company utilized its assets to generate revenue. This ratio showed a slight increasing trend from 1.36 in December 2020 to a peak of 1.45 in December 2022, indicating improved asset efficiency during this period. Afterward, the ratio gradually declined, fluctuating between 1.28 and 1.33 through to March 2025, implying a moderate reduction in asset utilization effectiveness.

Revenue Trends

Exhibited strong seasonality with recurring fourth-quarter peaks.

Experienced growth through 2020, with intermittent declines and partial recoveries during subsequent years.

The first quarter of 2025 showed decreased revenue, suggesting emerging headwinds.

Total Assets

Generally increased from early 2020 through early 2023, indicating asset growth or acquisitions.

Saw modest fluctuations and slight declines post-March 2023 but remained relatively stable overall.

Total Asset Turnover

Improved from December 2020 to the end of 2022, reflecting enhancing operational efficiency.

Declined slightly during 2023 and early 2025, signaling a potential decrease in asset utilization effectiveness.

The quarterly financial data reveals several notable trends and patterns over the analyzed periods.

Revenue

Revenue demonstrates a fluctuating yet generally cyclical pattern across the quarters. Initially, there is growth from March 2020 through December 2020, peaking at 24,896 million USD. Subsequently, there are several rises and falls with a notable peak in December 2021 at 27,771 million USD. From early 2022 to late 2023, revenue shows declines and recovery phases, with the highest values recorded in December quarters, suggesting seasonal impacts. The latest data from 2024 and early 2025 indicates a similar cyclical pattern, with revenues peak notably in December 2024 at 25,301 million USD, followed by a decline in the subsequent quarter. This illustrates an overall consistent seasonality with peaks typically occurring in the final quarter of each year.

Equity for controlling interests

Equity for controlling interests exhibits a general upward trajectory from March 2020 to December 2022. It rises sharply from 3,299 million USD in the first quarter of 2020 to 19,786 million USD by December 2022, indicating strengthening equity positions over this period. However, starting in 2023, equity values trend downward, with some stabilization around mid-2023 to early 2024, followed by continued decline into 2025, reaching 15,660 million USD by March 2025. This declining trend in recent periods may suggest capital returns, asset reductions, or other adjustments impacting shareholders' equity.

Equity turnover ratio

The equity turnover ratio is available from December 2020 onwards and generally shows a declining trend from an exceptionally high 128.81 ratio down to a range around 5 to 6 in subsequent quarters. After the initial sharp decrease, the turnover ratio stabilizes, hovering between approximately 4.8 and 6.0 through 2023 and 2024, with a slight increase toward the end of the series. This pattern suggests that the company initially generated an extremely high revenue relative to equity, which normalized over time to more typical turnover levels, indicating a maturing relationship between revenue generation and equity base.

Overall, the data reflects cyclical revenue trends with seasonal peaks in the last quarter of each year, growth and then gradual decline in equity for controlling interests, and a stabilization of equity turnover ratios after a sharp initial normalization. The patterns suggest a phase of expansion followed by some contraction or capital restructuring in equity, along with consistent revenue cycles aligned with seasonal business activity.