Analysis of Reportable Segments
United Parcel Service Inc. operates in 2 segments: U.S. Domestic Package and International Package.
Segment Profit Margin
United Parcel Service Inc., profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 7.20% | 8.56% | 11.07% | 10.67% | 7.27% |
| International Package | 17.77% | 18.12% | 21.96% | 23.78% | 21.55% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- U.S. Domestic Package Profit Margin
- The profit margin for the U.S. Domestic Package segment showed an upward trend from 7.27% in 2020 to a peak of 11.07% in 2022. However, this was followed by a decline in subsequent years, decreasing to 8.56% in 2023 and further to 7.2% in 2024. The initial increase suggests improved profitability or operational efficiencies during the early part of the period, but the later decline indicates challenges or a reduction in profitability in the most recent years.
- International Package Profit Margin
- The International Package segment demonstrated a higher profit margin compared to the domestic segment throughout the period. Starting at 21.55% in 2020, the margin increased to 23.78% in 2021. After 2021, the profit margin experienced a gradual decline, falling to 21.96% in 2022, then more noticeably to 18.12% in 2023 and slightly to 17.77% in 2024. This downward trend points to diminishing profitability or increased costs within the international operations over recent years.
- Comparative Insights
- Across the observed period, the International Package segment consistently maintained a significantly higher profit margin than the U.S. Domestic Package segment. Both segments experienced peak profitability around 2021-2022, followed by declines through 2023 and 2024. The decline is more pronounced in the International Package margin, which may reflect greater exposure to external factors such as global market conditions or operational complexities. The U.S. Domestic segment's recovery to above its 2020 level by 2021-2022 suggests effective management in earlier years before subsequent margin contraction.
Segment Profit Margin: U.S. Domestic Package
United Parcel Service Inc.; U.S. Domestic Package; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 4,345) | 5,156) | 7,151) | 6,436) | 3,891) |
| Revenue | 60,376) | 60,205) | 64,611) | 60,317) | 53,499) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 7.20% | 8.56% | 11.07% | 10.67% | 7.27% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Operating profit ÷ Revenue
= 100 × 4,345 ÷ 60,376 = 7.20%
The "U.S. Domestic Package" segment demonstrates a variable financial performance over the five-year period analyzed. Revenue exhibits an overall upward trend from 2020 to 2024, rising from approximately $53.5 billion to around $60.4 billion. However, the growth pattern is not consistent, as revenue peaks in 2022, then declines in 2023 before stabilizing in 2024.
Operating profit shows a different trajectory. It increased significantly from $3.9 billion in 2020 to a peak of $7.15 billion in 2022, indicating strong profitability gains during this period. Following this peak, operating profit declines sharply in 2023 and continues to decrease in 2024, falling to $4.3 billion. This suggests that although revenue remained relatively stable after 2022, profitability faced considerable pressure.
The segment profit margin mirrors the movements in operating profit, starting at 7.27% in 2020 and climbing to its highest point of 11.07% in 2022. After this peak, the margin contracts to 7.2% in 2024, indicating reduced efficiency or increased costs relative to revenue in the later years. The decline in profit margin after 2022 confirms that while revenue remained near peak levels, the segment's ability to convert sales into profit weakened.
- Revenue Trends
- Steady growth observed from 2020 to 2022, followed by a decline in 2023 and stabilization in 2024.
- Operating Profit Trends
- Strong growth leading to a peak in 2022, with a marked decline in the subsequent years through 2024.
- Profit Margin Trends
- Improved profitability peaking in 2022, followed by a significant contraction, reaching the lowest margin in 2024.
- Overall Insight
- The segment experienced robust growth and profitability improvements until 2022, after which operational challenges or cost pressures led to diminished profit margins and reduced operating income, despite stable revenues.
Segment Profit Margin: International Package
United Parcel Service Inc.; International Package; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 3,191) | 3,231) | 4,326) | 4,646) | 3,436) |
| Revenue | 17,960) | 17,831) | 19,698) | 19,541) | 15,945) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 17.77% | 18.12% | 21.96% | 23.78% | 21.55% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Operating profit ÷ Revenue
= 100 × 3,191 ÷ 17,960 = 17.77%
- Operating Profit
- The operating profit exhibited an overall fluctuation over the periods analyzed. It increased from US$ 3,436 million in 2020 to a peak of US$ 4,646 million in 2021, followed by a decline to US$ 4,326 million in 2022. Subsequently, it experienced a more pronounced decrease in 2023 and 2024, reaching US$ 3,231 million and US$ 3,191 million respectively. This trend indicates a significant reduction in profitability after 2021.
- Revenue
- Revenue demonstrated a growth trend from 2020 through 2022, starting at US$ 15,945 million and increasing to US$ 19,698 million. However, it experienced a decline in 2023 to US$ 17,831 million and a slight recovery in 2024 to US$ 17,960 million. This suggests some variability in revenue generation with a peak in 2022 followed by a partial decline.
- Segment Profit Margin
- The segment profit margin displayed a similar pattern to operating profit. It increased from 21.55% in 2020 to a high of 23.78% in 2021, then decreased to 21.96% in 2022. The margin continued to decline more noticeably in the following two years to 18.12% in 2023 and 17.77% in 2024. This downward trend in margin percentage indicates decreasing efficiency in generating profit from revenue in the latter years.
- Summary of Trends
- The data suggests that the segment experienced growth in both revenue and operating profit through 2021 and 2022, with 2021 representing a peak in profitability. However, from 2023 onward, both operating profit and profit margin declined significantly, despite revenue rebounding slightly in 2024. The reduction in segment profit margin alongside declining operating profit signals potential increasing costs or pricing pressures affecting profitability during the recent periods.
Segment Return on Assets (Segment ROA)
United Parcel Service Inc., ROA by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 11.24% | 13.44% | 18.67% | 18.00% | 11.10% |
| International Package | 17.44% | 18.37% | 24.48% | 26.97% | 21.86% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the annual reportable segment Return on Assets (ROA) data reveals distinct trends across the U.S. Domestic Package and International Package segments over the five-year period.
- U.S. Domestic Package Segment
- The ROA for this segment showed an overall upward movement from 11.1% in 2020 to a peak of 18.67% in 2022, indicating enhanced asset efficiency during this period. However, after reaching this high, there is a noticeable decline in ROA to 13.44% in 2023, further falling to 11.24% in 2024, suggesting a reduction in the segment's effectiveness in generating returns from its assets in the latter years.
- International Package Segment
- Starting with a higher ROA compared to the U.S. Domestic Package, the International Package segment's ROA increased steadily from 21.86% in 2020 to a peak of 26.97% in 2021. Following this peak, the ROA experienced a downward trend, decreasing to 24.48% in 2022, then more sharply to 18.37% in 2023, and finally to 17.44% in 2024. This trend indicates a gradual erosion in asset profitability over time, although the segment consistently maintained a higher ROA than the U.S. Domestic Package segment.
In summary, both segments experienced growth in ROA in the initial years, peaking between 2021 and 2022, followed by a decline through 2024. The International Package segment consistently outperformed the U.S. Domestic Package segment in terms of ROA, but both segments face a downward pressure on asset returns in recent years. This pattern may suggest evolving operational or market challenges impacting asset utilization efficiency.
Segment ROA: U.S. Domestic Package
United Parcel Service Inc.; U.S. Domestic Package; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 4,345) | 5,156) | 7,151) | 6,436) | 3,891) |
| Assets | 38,657) | 38,368) | 38,303) | 35,746) | 35,067) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 11.24% | 13.44% | 18.67% | 18.00% | 11.10% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 4,345 ÷ 38,657 = 11.24%
- Operating Profit
- The operating profit showed a notable increase from 3,891 million US dollars in 2020 to 6,436 million US dollars in 2021. This upward trend continued in 2022, reaching a peak of 7,151 million US dollars. However, in subsequent years, there was a decline, with operating profit decreasing to 5,156 million US dollars in 2023 and further down to 4,345 million US dollars in 2024.
- Assets
- Assets demonstrated a steady growth over the period under review. The value of assets increased gradually from 35,067 million US dollars in 2020 to 38,657 million US dollars in 2024. The increase was consistent year-over-year, although the rate of growth appeared moderate.
- Segment Return on Assets (ROA)
- The segment ROA experienced significant fluctuations. It improved notably from 11.1% in 2020 to a peak of 18.67% in 2022, reflecting increasing efficiency in asset utilization relative to operating profit. Nonetheless, following this peak, the ROA declined to 13.44% in 2023 and further to 11.24% in 2024, indicating reduced profitability relative to the asset base.
- Summary of Trends
- Overall, the data reveals a period of strengthening financial performance from 2020 through 2022, with rising operating profit and improved asset efficiency. However, this positive trajectory reversed during 2023 and 2024, marked by declining operating profit and segment ROA despite a continuous, though modest, increase in total assets. The decline in profitability ratios suggests potential challenges in maintaining operational efficiency or market conditions impacting earnings relative to asset size in the latter years.
Segment ROA: International Package
United Parcel Service Inc.; International Package; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 3,191) | 3,231) | 4,326) | 4,646) | 3,436) |
| Assets | 18,300) | 17,587) | 17,670) | 17,225) | 15,717) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 17.44% | 18.37% | 24.48% | 26.97% | 21.86% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 3,191 ÷ 18,300 = 17.44%
- Operating Profit
- The operating profit experienced an increase from 3,436 million US dollars in 2020 to a peak of 4,646 million US dollars in 2021. Following this peak, there was a decline to 4,326 million in 2022, and a further decrease in 2023 to 3,231 million. The downward trend continued slightly into 2024, reaching 3,191 million. Overall, operating profit showed significant volatility with a high in 2021 and a gradual decrease thereafter.
- Assets
- Assets increased consistently over the five-year period from 15,717 million US dollars in 2020 to 18,300 million in 2024. The growth was steady, with only modest fluctuations in the rate of increase, indicating ongoing asset accumulation or investment in the international package segment.
- Segment Return on Assets (ROA)
- The segment ROA rose from 21.86% in 2020 to a high of 26.97% in 2021, reflecting improved efficiency or profitability relative to assets. However, after 2021, ROA declined each year, dropping to 24.48% in 2022, then more sharply to 18.37% in 2023, and further to 17.44% in 2024. This downward trend suggests declining asset utilization efficiency or profitability challenges following the initial improvement.
- Summary
- The international package segment showed strong performance gains in 2021 with peak operating profit and ROA. However, subsequent years exhibited declines in profitability and efficiency metrics despite continued asset growth. The reduction in operating profit alongside declining ROA points to potential challenges in managing costs or revenue generation relative to asset base after 2021. The steady increase in assets without corresponding improvements in profitability or efficiency could warrant further investigation into asset deployment effectiveness or market conditions impacting the segment.
Segment Asset Turnover
United Parcel Service Inc., asset turnover by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 1.56 | 1.57 | 1.69 | 1.69 | 1.53 |
| International Package | 0.98 | 1.01 | 1.11 | 1.13 | 1.01 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- U.S. Domestic Package Asset Turnover
- The U.S. Domestic Package segment exhibits a moderate fluctuation in asset turnover over the five-year period. Starting at 1.53 in 2020, there was a noticeable increase to 1.69 in 2021, which was maintained through 2022. However, the ratio subsequently declined in 2023 to 1.57 and showed a slight further decrease to 1.56 in 2024. This trend suggests that after a period of improved efficiency or asset utilization, the segment experienced a reduction, albeit modest, in its asset turnover levels in the last two reported years.
- International Package Asset Turnover
- The International Package segment's asset turnover ratio also demonstrates variability within the same timeframe. Beginning at 1.01 in 2020, it increased to a peak of 1.13 in 2021, followed by a minor decline to 1.11 in 2022. The turnover ratio then dropped more substantially to 1.01 in 2023 and further to 0.98 in 2024. Unlike the U.S. Domestic segment, the International Package segment's asset turnover ended the period lower than its starting point, indicating a decreasing trend in asset utilization efficiency over the most recent years.
- Comparative Insights
- Throughout the period, the U.S. Domestic Package consistently maintained higher asset turnover ratios compared to the International Package, reflecting potentially greater efficiency or throughput per unit of assets in the domestic operations. Both segments experienced their highest ratios in 2021, followed by declines. Notably, while the U.S. Domestic segment's asset turnover decreased slightly after 2022, it remained above the starting level from 2020. Conversely, the International segment showed a more pronounced downward trajectory after 2021, ending below its initial value. This contrast may suggest differing operational challenges or market conditions affecting asset productivity between the two geographic segments in recent years.
Segment Asset Turnover: U.S. Domestic Package
United Parcel Service Inc.; U.S. Domestic Package; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 60,376) | 60,205) | 64,611) | 60,317) | 53,499) |
| Assets | 38,657) | 38,368) | 38,303) | 35,746) | 35,067) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.56 | 1.57 | 1.69 | 1.69 | 1.53 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment asset turnover = Revenue ÷ Assets
= 60,376 ÷ 38,657 = 1.56
- Revenue Trends
- Revenue increased steadily from 53,499 million US dollars in 2020 to 64,611 million US dollars in 2022. However, it declined significantly in 2023 to 60,205 million US dollars before stabilizing slightly to 60,376 million US dollars in 2024. This indicates a peak in revenue in 2022 followed by a notable slowdown and a plateau in the subsequent two years.
- Assets Trends
- Total assets showed a consistent incremental increase over the five-year period. Starting at 35,067 million US dollars in 2020, assets grew modestly each year, reaching 38,657 million US dollars by 2024. This gradual growth suggests continuous investment or accumulation of resources within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio increased from 1.53 in 2020 to 1.69 in both 2021 and 2022, indicating improved efficiency in using assets to generate revenue during this period. However, the ratio decreased to 1.57 in 2023 and further slightly to 1.56 in 2024. This decline suggests a reduction in asset utilization efficiency following the peak years, aligning with the observed decline in revenue.
- Overall Analysis
- The segment experienced strong revenue growth and improved asset utilization from 2020 through 2022, reflecting a period of expansion and operational efficiency. Starting in 2023, revenue declined and asset turnover dropped, indicating a possible shift in market conditions, operational challenges, or investment strategy that affected performance. Despite these setbacks, assets continued to increase, possibly pointing to ongoing investments aimed at future growth or capacity maintenance.
Segment Asset Turnover: International Package
United Parcel Service Inc.; International Package; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 17,960) | 17,831) | 19,698) | 19,541) | 15,945) |
| Assets | 18,300) | 17,587) | 17,670) | 17,225) | 15,717) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.98 | 1.01 | 1.11 | 1.13 | 1.01 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment asset turnover = Revenue ÷ Assets
= 17,960 ÷ 18,300 = 0.98
The analysis of the annual data over the five-year period reveals several notable trends regarding revenue, assets, and segment asset turnover in the International Package segment.
- Revenue
- Revenue increased substantially from 15,945 million USD in 2020 to 19,698 million USD in 2022, indicating solid growth over the first three years. However, there was a decline in 2023 to 17,831 million USD, which was largely maintained in 2024 with a slight increase to 17,960 million USD. This pattern suggests that after reaching a peak in 2022, revenue faced downward pressure but stabilized somewhat in the final year.
- Assets
- Assets showed a consistently upward trend across the entire period, rising from 15,717 million USD in 2020 to 18,300 million USD in 2024. The growth in assets was gradual but steady, without any declines, indicating ongoing investment or accumulation of resources within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio increased from 1.01 in 2020 to a peak of 1.13 in 2021, reflecting improved efficiency in generating revenue from assets. Following this, the ratio decreased slightly to 1.11 in 2022, then fell more notably to 1.01 in 2023 and further to 0.98 in 2024. This declining trend after 2021 suggests reduced efficiency in utilizing assets to generate revenue in subsequent years.
In summary, the segment experienced strong revenue growth through 2022, accompanied by asset growth and initially improved asset efficiency. However, revenue declined and asset turnover decreased after 2022, even as asset levels continued to rise, indicating that the segment's effectiveness in converting assets into revenue weakened in the latter part of the period.
Revenue
United Parcel Service Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 60,376) | 60,205) | 64,611) | 60,317) | 53,499) |
| International Package | 17,960) | 17,831) | 19,698) | 19,541) | 15,945) |
| Total | 78,336) | 78,036) | 84,309) | 79,858) | 69,444) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- U.S. Domestic Package Revenue
- The revenue from the U.S. Domestic Package segment showed an initial upward trend from 53,499 million US dollars in 2020 to a peak of 64,611 million in 2022. Following this peak, the segment experienced a decline in 2023 to 60,205 million, with a slight recovery to 60,376 million in 2024. Overall, the segment demonstrated growth over the five-year period but with some volatility after 2022.
- International Package Revenue
- This segment exhibited consistent growth from 15,945 million US dollars in 2020 to 19,698 million in 2022. However, from 2023 onward, there was a noticeable decline to 17,831 million in 2023 and a marginal increase to 17,960 million in 2024. The revenue pattern suggests that the segment faced challenges post-2022, leading to a contraction in revenue despite prior expansion.
- Total Revenue
- Total reportable segment revenue increased steadily from 69,444 million US dollars in 2020 to a high of 84,309 million in 2022. After this peak, the total revenue decreased to 78,036 million in 2023 and only slightly increased to 78,336 million in 2024. The total revenue trend closely follows the combined fluctuations of the two segments, indicating that the decline in both U.S. Domestic and International Package revenues after 2022 impacted overall performance.
- Overall Insights
- The data illustrates a growth phase for both U.S. Domestic and International Package segments until 2022, followed by a period of decline and stabilization. The U.S. Domestic segment is the dominant contributor and its post-2022 decline significantly influenced the total revenue trend. The International segment's revenue also plateaued and slightly decreased after 2022, compounding the effect on total revenue. These trends may reflect changing market conditions, operational challenges, or shifts in demand affecting both domestic and international package shipments in recent years.
Operating profit
United Parcel Service Inc., operating profit by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 4,345) | 5,156) | 7,151) | 6,436) | 3,891) |
| International Package | 3,191) | 3,231) | 4,326) | 4,646) | 3,436) |
| Total | 7,536) | 8,387) | 11,477) | 11,082) | 7,327) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Overall Trend in Operating Profit
- The total segment operating profit showed an increasing trend from 2020 to 2022, rising from 7,327 million US dollars to 11,477 million US dollars. However, from 2022 to 2024, a decline is observable, with profits decreasing to 7,536 million US dollars by 2024.
- U.S. Domestic Package Segment
- The U.S. Domestic Package segment experienced growth from 2020 to 2022, with operating profit increasing from 3,891 million US dollars to 7,151 million US dollars. Thereafter, a significant decline occurred in 2023 and 2024, dropping to 4,345 million US dollars, which is notably lower than the 2020 level.
- International Package Segment
- The International Package segment also showed growth from 2020 to 2021, increasing from 3,436 million US dollars to 4,646 million US dollars. This was followed by a gradual decrease over the subsequent years, declining to 3,191 million US dollars by 2024, which is below the 2020 figure.
- Comparative Insights
- Both segments followed a similar pattern of initial growth followed by decline post-2022. The U.S. Domestic Package segment demonstrated greater volatility with a sharper increase and subsequent decrease compared to the International Package segment. Despite the decline in recent years, the U.S. Domestic Package segment remains a larger contributor to the total operating profit relative to the International Package segment.
- Summary
- The data suggests that operating profit growth for both segments peaked in 2022, followed by a period of contraction. This indicates potential challenges in maintaining profitability in both domestic and international markets post-2022. The pronounced decline in the U.S. Domestic Package segment is particularly notable and may warrant further analysis to identify underlying causes.
Assets
United Parcel Service Inc., assets by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 38,657) | 38,368) | 38,303) | 35,746) | 35,067) |
| International Package | 18,300) | 17,587) | 17,670) | 17,225) | 15,717) |
| Total | 56,957) | 55,955) | 55,973) | 52,971) | 50,784) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The segment assets data reveals distinct trends in the U.S. Domestic Package and International Package divisions over the five-year period from December 31, 2020, to December 31, 2024.
- U.S. Domestic Package
- The assets in the U.S. Domestic Package segment show a steady but moderate growth trend. Starting at US$35,067 million in 2020, the segment assets increased incrementally each year, reaching US$38,657 million in 2024. The annual increases reflect consistent investment or asset accumulation, with a slightly slower growth rate observed between 2022 and 2023.
- International Package
- The International Package segment demonstrates a more dynamic growth pattern. From US$15,717 million in 2020, assets rose sharply to US$17,225 million by the end of 2021. This was followed by a marginal increase in 2022, and a minor decline in 2023 to US$17,587 million. However, the segment rebounded in 2024, reaching a peak of US$18,300 million. These fluctuations suggest varying investment or market conditions impacting this segment’s asset base more significantly than the domestic segment.
- Total Segment Assets
- The aggregate assets, representing the sum of both segments, steadily increased from US$50,784 million in 2020 to US$56,957 million in 2024. The total assets experienced consistent growth each year, aligning with the individual trends of the segments, albeit at a tempered pace due to the moderate changes in the International Package segment assets during 2022 and 2023.
Overall, the data indicates a stable expansion in the company's asset base across both segments, with the U.S. Domestic Package reflecting gradual and steady asset growth and the International Package showing more variability but an overall upward trend by the end of the period. The total segment assets closely mirror these combined movements, suggesting effective asset management and strategic investment in both domestic and international operations.