Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
United Parcel Service Inc., profitability ratios
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
| 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
| 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
| 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
| 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
| 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. |