Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

United Parcel Service Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Return on Sales
Gross profit margin 72.20% 73.87% 74.21% 72.27% 75.05%
Operating profit margin 13.17% 9.08% 10.52% 9.77% 11.43%
Net profit margin 13.25% 1.59% 5.99% 6.67% 7.45%
Return on Investment
Return on equity (ROE) 90.44% 204.41% 135.90% 158.59% 491.00%
Return on assets (ROA) 18.57% 2.15% 7.67% 9.58% 10.81%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. United Parcel Service Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. United Parcel Service Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. United Parcel Service Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. United Parcel Service Inc. ROE improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. United Parcel Service Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Gross Profit Margin

United Parcel Service Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Gross profit 70,241  62,511  54,985  51,931  49,438 
Revenue 97,287  84,628  74,094  71,861  65,872 
Profitability Ratio
Gross profit margin1 72.20% 73.87% 74.21% 72.27% 75.05%
Benchmarks
Gross Profit Margin, Competitors2
American Airlines Group Inc. 57.11% 59.39% 70.97% 70.21% 73.72%
CSX Corp. 75.66% 78.64% 76.49% 74.44% 73.75%
Delta Air Lines Inc. 51.85% 37.44% 57.60% 56.25% 57.91%
FedEx Corp. 61.84% 60.66% 61.64% 62.63% 63.50%
Norfolk Southern Corp. 77.34% 77.30% 76.29% 75.41% 78.64%
Union Pacific Corp. 81.36% 83.23% 79.91% 78.21% 79.97%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 70,241 ÷ 97,287 = 72.20%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. United Parcel Service Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

United Parcel Service Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating profit 12,810  7,684  7,798  7,024  7,529 
Revenue 97,287  84,628  74,094  71,861  65,872 
Profitability Ratio
Operating profit margin1 13.17% 9.08% 10.52% 9.77% 11.43%
Benchmarks
Operating Profit Margin, Competitors2
American Airlines Group Inc. -3.54% -60.11% 6.70% 5.96% 9.61%
CSX Corp. 44.67% 41.22% 41.59% 39.75% 32.14%
Delta Air Lines Inc. 6.31% -72.94% 14.08% 11.85% 14.82%
FedEx Corp. 6.98% 3.49% 6.41% 7.44% 8.35%
Norfolk Southern Corp. 39.91% 30.67% 35.31% 34.55% 33.99%
Union Pacific Corp. 42.83% 40.11% 39.40% 37.30% 37.95%
Operating Profit Margin, Sector
Transportation 13.57% 1.06% 14.02% 13.62% 15.05%
Operating Profit Margin, Industry
Industrials 11.45% 3.04% 12.47% 13.36% 13.51%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating profit margin = 100 × Operating profit ÷ Revenue
= 100 × 12,810 ÷ 97,287 = 13.17%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. United Parcel Service Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Net Profit Margin

United Parcel Service Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 12,890  1,343  4,440  4,791  4,910 
Revenue 97,287  84,628  74,094  71,861  65,872 
Profitability Ratio
Net profit margin1 13.25% 1.59% 5.99% 6.67% 7.45%
Benchmarks
Net Profit Margin, Competitors2
American Airlines Group Inc. -6.67% -51.25% 3.68% 3.17% 4.55%
CSX Corp. 30.19% 26.13% 27.90% 27.01% 47.96%
Delta Air Lines Inc. 0.94% -72.45% 10.14% 8.86% 8.67%
FedEx Corp. 6.23% 1.86% 0.77% 6.99% 4.97%
Norfolk Southern Corp. 26.97% 20.56% 24.10% 23.27% 51.22%
Union Pacific Corp. 29.92% 27.38% 27.27% 26.13% 50.43%
Net Profit Margin, Sector
Transportation 10.37% -3.73% 8.31% 9.77% 13.84%
Net Profit Margin, Industry
Industrials 7.04% 0.31% 6.60% 5.90% 7.48%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 12,890 ÷ 97,287 = 13.25%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. United Parcel Service Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Return on Equity (ROE)

United Parcel Service Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 12,890  1,343  4,440  4,791  4,910 
Equity for controlling interests 14,253  657  3,267  3,021  1,000 
Profitability Ratio
ROE1 90.44% 204.41% 135.90% 158.59% 491.00%
Benchmarks
ROE, Competitors2
American Airlines Group Inc. 48.88%
CSX Corp. 28.03% 21.11% 28.11% 26.34% 37.21%
Delta Air Lines Inc. 7.20% -807.37% 31.04% 28.75% 25.72%
FedEx Corp. 21.64% 7.03% 3.04% 23.55% 18.65%
Norfolk Southern Corp. 22.03% 13.61% 17.93% 17.35% 33.03%
Union Pacific Corp. 46.06% 31.54% 32.65% 29.21% 43.10%
ROE, Sector
Transportation 38.97% -14.56% 28.74% 31.61% 38.52%
ROE, Industry
Industrials 19.99% 0.90% 24.51% 21.94% 22.57%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROE = 100 × Net income ÷ Equity for controlling interests
= 100 × 12,890 ÷ 14,253 = 90.44%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. United Parcel Service Inc. ROE improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Return on Assets (ROA)

United Parcel Service Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 12,890  1,343  4,440  4,791  4,910 
Total assets 69,405  62,408  57,857  50,016  45,403 
Profitability Ratio
ROA1 18.57% 2.15% 7.67% 9.58% 10.81%
Benchmarks
ROA, Competitors2
American Airlines Group Inc. -3.00% -14.33% 2.81% 2.33% 3.73%
CSX Corp. 9.33% 6.95% 8.71% 9.01% 15.31%
Delta Air Lines Inc. 0.39% -17.20% 7.39% 6.53% 6.71%
FedEx Corp. 6.32% 1.75% 0.99% 8.74% 6.17%
Norfolk Southern Corp. 7.81% 5.30% 7.18% 7.36% 15.13%
Union Pacific Corp. 10.27% 8.57% 9.60% 10.09% 18.53%
ROA, Sector
Transportation 6.85% -2.08% 6.25% 7.50% 10.67%
ROA, Industry
Industrials 4.00% 0.15% 4.06% 3.82% 4.59%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 12,890 ÷ 69,405 = 18.57%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. United Parcel Service Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.