Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
United Parcel Service Inc., short-term (operating) activity ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | United Parcel Service Inc. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | United Parcel Service Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | United Parcel Service Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | United Parcel Service Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | United Parcel Service Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | United Parcel Service Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
United Parcel Service Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 90,958) | 100,338) | 97,287) | 84,628) | 74,094) | |
| Inventories | 935) | 889) | 717) | 620) | 511) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 97.28 | 112.87 | 135.69 | 136.50 | 145.00 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| FedEx Corp. | 149.26 | 146.80 | 143.03 | 121.01 | 126.03 | |
| Union Pacific Corp. | 32.46 | 33.57 | 35.11 | 30.62 | 28.91 | |
| Inventory Turnover, Sector | ||||||
| Transportation | 99.78 | 105.15 | 110.34 | 97.56 | 95.15 | |
| Inventory Turnover, Industry | ||||||
| Industrials | 3.92 | 3.98 | 3.88 | 3.63 | 3.97 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Inventory turnover = Revenue ÷ Inventories
= 90,958 ÷ 935 = 97.28
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | United Parcel Service Inc. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
United Parcel Service Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 90,958) | 100,338) | 97,287) | 84,628) | 74,094) | |
| Accounts receivable, net | 11,216) | 12,583) | 12,541) | 10,750) | 9,552) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 8.11 | 7.97 | 7.76 | 7.87 | 7.76 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| FedEx Corp. | 8.85 | 7.88 | 6.96 | 6.85 | 7.65 | |
| Uber Technologies Inc. | 10.95 | 11.47 | 7.16 | 10.38 | 11.65 | |
| Union Pacific Corp. | 11.63 | 13.15 | 12.66 | 12.98 | 13.61 | |
| Receivables Turnover, Sector | ||||||
| Transportation | 9.02 | 8.61 | 7.66 | 7.88 | 8.36 | |
| Receivables Turnover, Industry | ||||||
| Industrials | 8.00 | 7.66 | 7.53 | 7.37 | 7.61 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net
= 90,958 ÷ 11,216 = 8.11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | United Parcel Service Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
United Parcel Service Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 90,958) | 100,338) | 97,287) | 84,628) | 74,094) | |
| Accounts payable | 6,340) | 7,512) | 7,523) | 6,455) | 5,555) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 14.35 | 13.36 | 12.93 | 13.11 | 13.34 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| FedEx Corp. | 23.43 | 23.20 | 21.86 | 21.17 | 23.00 | |
| Uber Technologies Inc. | 28.43 | 27.00 | 10.87 | 21.93 | 26.50 | |
| Union Pacific Corp. | 28.18 | 31.73 | 28.99 | 31.92 | 28.98 | |
| Payables Turnover, Sector | ||||||
| Transportation | 19.24 | 18.26 | 16.37 | 16.89 | 17.98 | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.65 | 7.44 | 7.66 | 7.35 | 7.38 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Payables turnover = Revenue ÷ Accounts payable
= 90,958 ÷ 6,340 = 14.35
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | United Parcel Service Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
United Parcel Service Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 19,413) | 22,217) | 24,934) | 20,216) | 17,103) | |
| Less: Current liabilities | 17,676) | 18,140) | 17,569) | 17,016) | 15,413) | |
| Working capital | 1,737) | 4,077) | 7,365) | 3,200) | 1,690) | |
| Revenue | 90,958) | 100,338) | 97,287) | 84,628) | 74,094) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 52.36 | 24.61 | 13.21 | 26.45 | 43.84 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| FedEx Corp. | 17.94 | 15.35 | 12.13 | 11.46 | 17.11 | |
| Uber Technologies Inc. | 20.23 | 80.50 | — | 3.69 | 1.71 | |
| Union Pacific Corp. | — | — | — | 476.41 | — | |
| Working Capital Turnover, Sector | ||||||
| Transportation | 31.72 | 27.86 | 18.55 | 15.01 | 13.65 | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 11.58 | 9.65 | 6.77 | 4.43 | 9.88 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 90,958 ÷ 1,737 = 52.36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | United Parcel Service Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Average Inventory Processing Period
United Parcel Service Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 97.28 | 112.87 | 135.69 | 136.50 | 145.00 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 4 | 3 | 3 | 3 | 3 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| FedEx Corp. | 2 | 2 | 3 | 3 | 3 | |
| Union Pacific Corp. | 11 | 11 | 10 | 12 | 13 | |
| Average Inventory Processing Period, Sector | ||||||
| Transportation | 4 | 3 | 3 | 4 | 4 | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 93 | 92 | 94 | 100 | 92 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 97.28 = 4
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
United Parcel Service Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 8.11 | 7.97 | 7.76 | 7.87 | 7.76 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 45 | 46 | 47 | 46 | 47 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| FedEx Corp. | 41 | 46 | 52 | 53 | 48 | |
| Uber Technologies Inc. | 33 | 32 | 51 | 35 | 31 | |
| Union Pacific Corp. | 31 | 28 | 29 | 28 | 27 | |
| Average Receivable Collection Period, Sector | ||||||
| Transportation | 40 | 42 | 48 | 46 | 44 | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 46 | 48 | 48 | 49 | 48 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.11 = 45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | United Parcel Service Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
United Parcel Service Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 4 | 3 | 3 | 3 | 3 | |
| Average receivable collection period | 45 | 46 | 47 | 46 | 47 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 49 | 49 | 50 | 49 | 50 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| FedEx Corp. | 43 | 48 | 55 | 56 | 51 | |
| Union Pacific Corp. | 42 | 39 | 39 | 40 | 40 | |
| Operating Cycle, Sector | ||||||
| Transportation | 44 | 45 | 51 | 50 | 48 | |
| Operating Cycle, Industry | ||||||
| Industrials | 139 | 140 | 142 | 149 | 140 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 4 + 45 = 49
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
United Parcel Service Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 14.35 | 13.36 | 12.93 | 13.11 | 13.34 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 25 | 27 | 28 | 28 | 27 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| FedEx Corp. | 16 | 16 | 17 | 17 | 16 | |
| Uber Technologies Inc. | 13 | 14 | 34 | 17 | 14 | |
| Union Pacific Corp. | 13 | 12 | 13 | 11 | 13 | |
| Average Payables Payment Period, Sector | ||||||
| Transportation | 19 | 20 | 22 | 22 | 20 | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 48 | 49 | 48 | 50 | 49 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.35 = 25
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | United Parcel Service Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
Cash Conversion Cycle
United Parcel Service Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 4 | 3 | 3 | 3 | 3 | |
| Average receivable collection period | 45 | 46 | 47 | 46 | 47 | |
| Average payables payment period | 25 | 27 | 28 | 28 | 27 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 24 | 22 | 22 | 21 | 23 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| FedEx Corp. | 27 | 32 | 38 | 39 | 35 | |
| Union Pacific Corp. | 29 | 27 | 26 | 29 | 27 | |
| Cash Conversion Cycle, Sector | ||||||
| Transportation | 25 | 25 | 29 | 28 | 28 | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 91 | 91 | 94 | 99 | 91 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 4 + 45 – 25 = 24
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |