Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

United Parcel Service Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 135.69 136.50 145.00 170.69 163.05
Receivables turnover 7.76 7.87 7.76 8.02 7.51
Payables turnover 12.93 13.11 13.34 13.85 17.01
Working capital turnover 13.21 26.45 43.84 33.85 23.19
Average No. Days
Average inventory processing period 3 3 3 2 2
Add: Average receivable collection period 47 46 47 45 49
Operating cycle 50 49 50 47 51
Less: Average payables payment period 28 28 27 26 21
Cash conversion cycle 22 21 23 21 30

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).

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 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. United Parcel Service Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. United Parcel Service Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. United Parcel Service Inc. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

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.
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.
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

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)
Revenue 97,287  84,628  74,094  71,861  65,872 
Inventories 717  620  511  421  404 
Short-term Activity Ratio
Inventory turnover1 135.69 136.50 145.00 170.69 163.05
Benchmarks
Inventory Turnover, Competitors2
American Airlines Group Inc. 16.65 10.74 24.73 29.26 31.06
CSX Corp. 36.94 35.04 45.74 46.58 30.67
Delta Air Lines Inc. 13.11 14.61 15.93 18.43 13.06
FedEx Corp. 143.03 121.01 126.03 124.67 117.35
Union Pacific Corp. 35.11 30.62 28.91 30.77 28.36
United Airlines Holdings Inc. 25.06 16.48 40.35 41.93 40.84
Inventory Turnover, Sector
Transportation 46.33 42.02 45.82 50.37 45.33
Inventory Turnover, Industry
Industrials 4.29 3.85 4.68 5.28 5.67

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
Inventory turnover = Revenue ÷ Inventories
= 97,287 ÷ 717 = 135.69

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 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

United Parcel Service Inc., receivables turnover 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)
Revenue 97,287  84,628  74,094  71,861  65,872 
Accounts receivable, net 12,541  10,750  9,552  8,958  8,773 
Short-term Activity Ratio
Receivables turnover1 7.76 7.87 7.76 8.02 7.51
Benchmarks
Receivables Turnover, Competitors2
American Airlines Group Inc. 19.86 12.92 26.15 26.11 24.09
CSX Corp. 10.91 11.60 12.11 12.13 11.76
Delta Air Lines Inc. 12.44 12.25 16.47 19.20 17.35
FedEx Corp. 6.96 6.85 7.65 7.72 7.94
Union Pacific Corp. 12.66 12.98 13.61 13.01 14.23
United Airlines Holdings Inc. 14.81 11.86 31.71 30.69 28.16
Receivables Turnover, Sector
Transportation 9.08 8.56 11.52 11.84 11.52
Receivables Turnover, Industry
Industrials 8.27 7.83 8.86 8.88 7.04

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
Receivables turnover = Revenue ÷ Accounts receivable, net
= 97,287 ÷ 12,541 = 7.76

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 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Payables Turnover

United Parcel Service Inc., payables turnover 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)
Revenue 97,287  84,628  74,094  71,861  65,872 
Accounts payable 7,523  6,455  5,555  5,188  3,872 
Short-term Activity Ratio
Payables turnover1 12.93 13.11 13.34 13.85 17.01
Benchmarks
Payables Turnover, Competitors2
American Airlines Group Inc. 16.86 14.50 22.20 25.12 25.00
CSX Corp. 13.00 13.08 11.44 12.91 13.47
Delta Air Lines Inc. 3.40 3.77 6.10 6.53 4.72
FedEx Corp. 21.86 21.17 23.00 21.99 21.92
Union Pacific Corp. 28.99 31.92 28.98 26.18 20.97
United Airlines Holdings Inc. 9.62 9.63 16.00 17.48 17.18
Payables Turnover, Sector
Transportation 13.14 13.55 15.56 16.24 15.97
Payables Turnover, Industry
Industrials 7.94 7.51 8.07 8.38 8.47

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
Payables turnover = Revenue ÷ Accounts payable
= 97,287 ÷ 7,523 = 12.93

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 decreased from 2019 to 2020 and from 2020 to 2021.

Working Capital Turnover

United Parcel Service Inc., working capital turnover 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)
Current assets 24,934  20,216  17,103  16,210  15,548 
Less: Current liabilities 17,569  17,016  15,413  14,087  12,708 
Working capital 7,365  3,200  1,690  2,123  2,840 
 
Revenue 97,287  84,628  74,094  71,861  65,872 
Short-term Activity Ratio
Working capital turnover1 13.21 26.45 43.84 33.85 23.19
Benchmarks
Working Capital Turnover, Competitors2
American Airlines Group Inc.
CSX Corp. 7.64 4.37 10.59 18.85 543.24
Delta Air Lines Inc. 11.57
FedEx Corp. 12.13 11.46 17.11 17.62 12.81
Union Pacific Corp. 476.41 317.01
United Airlines Holdings Inc. 6.98 7.40
Working Capital Turnover, Sector
Transportation 28.39 23.90
Working Capital Turnover, Industry
Industrials 7.75 4.98 36.24 60.50 18.23

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
Working capital turnover = Revenue ÷ Working capital
= 97,287 ÷ 7,365 = 13.21

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 deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Inventory Processing Period

United Parcel Service Inc., average inventory processing period 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
Inventory turnover 135.69 136.50 145.00 170.69 163.05
Short-term Activity Ratio (no. days)
Average inventory processing period1 3 3 3 2 2
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
American Airlines Group Inc. 22 34 15 12 12
CSX Corp. 10 10 8 8 12
Delta Air Lines Inc. 28 25 23 20 28
FedEx Corp. 3 3 3 3 3
Union Pacific Corp. 10 12 13 12 13
United Airlines Holdings Inc. 15 22 9 9 9
Average Inventory Processing Period, Sector
Transportation 8 9 8 7 8
Average Inventory Processing Period, Industry
Industrials 85 95 78 69 64

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 135.69 = 3

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 7.76 7.87 7.76 8.02 7.51
Short-term Activity Ratio (no. days)
Average receivable collection period1 47 46 47 45 49
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
American Airlines Group Inc. 18 28 14 14 15
CSX Corp. 33 31 30 30 31
Delta Air Lines Inc. 29 30 22 19 21
FedEx Corp. 52 53 48 47 46
Union Pacific Corp. 29 28 27 28 26
United Airlines Holdings Inc. 25 31 12 12 13
Average Receivable Collection Period, Sector
Transportation 40 43 32 31 32
Average Receivable Collection Period, Industry
Industrials 44 47 41 41 52

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.76 = 47

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.

Operating Cycle

United Parcel Service Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 3 3 3 2 2
Average receivable collection period 47 46 47 45 49
Short-term Activity Ratio
Operating cycle1 50 49 50 47 51
Benchmarks
Operating Cycle, Competitors2
American Airlines Group Inc. 40 62 29 26 27
CSX Corp. 43 41 38 38 43
Delta Air Lines Inc. 57 55 45 39 49
FedEx Corp. 55 56 51 50 49
Union Pacific Corp. 39 40 40 40 39
United Airlines Holdings Inc. 40 53 21 21 22
Operating Cycle, Sector
Transportation 48 52 40 38 40
Operating Cycle, Industry
Industrials 129 142 119 110 116

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 cycle = Average inventory processing period + Average receivable collection period
= 3 + 47 = 50

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 12.93 13.11 13.34 13.85 17.01
Short-term Activity Ratio (no. days)
Average payables payment period1 28 28 27 26 21
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
American Airlines Group Inc. 22 25 16 15 15
CSX Corp. 28 28 32 28 27
Delta Air Lines Inc. 108 97 60 56 77
FedEx Corp. 17 17 16 17 17
Union Pacific Corp. 13 11 13 14 17
United Airlines Holdings Inc. 38 38 23 21 21
Average Payables Payment Period, Sector
Transportation 28 27 23 22 23
Average Payables Payment Period, Industry
Industrials 46 49 45 44 43

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.93 = 28

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.

Cash Conversion Cycle

United Parcel Service Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 3 3 3 2 2
Average receivable collection period 47 46 47 45 49
Average payables payment period 28 28 27 26 21
Short-term Activity Ratio
Cash conversion cycle1 22 21 23 21 30
Benchmarks
Cash Conversion Cycle, Competitors2
American Airlines Group Inc. 18 37 13 11 12
CSX Corp. 15 13 6 10 16
Delta Air Lines Inc. -51 -42 -15 -17 -28
FedEx Corp. 38 39 35 33 32
Union Pacific Corp. 26 29 27 26 22
United Airlines Holdings Inc. 2 15 -2 0 1
Cash Conversion Cycle, Sector
Transportation 20 25 17 16 17
Cash Conversion Cycle, Industry
Industrials 83 93 74 66 73

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 3 + 4728 = 22

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.