United Parcel Service Inc (UPS)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 90,120,000 | 92,386,000 | 95,508,000 | 98,239,000 | 99,706,000 | 99,824,000 | 99,024,000 | 97,853,000 | 96,557,000 | 94,412,000 | 92,466,000 | 89,501,000 | 84,628,000 | 80,300,000 | 77,380,000 | 74,969,000 | 74,094,000 | 73,374,000 | 72,500,000 | 71,908,000 |
| Property, plant and equipment | US$ in thousands | 36,089,000 | 35,203,000 | 34,658,000 | 34,995,000 | 34,719,000 | 33,625,000 | 33,487,000 | 33,595,000 | 33,475,000 | 32,859,000 | 32,631,000 | 32,455,000 | 32,254,000 | 32,164,000 | 31,439,000 | 30,908,000 | 30,482,000 | 29,071,000 | 28,095,000 | 27,247,000 |
| Fixed asset turnover | 2.50 | 2.62 | 2.76 | 2.81 | 2.87 | 2.97 | 2.96 | 2.91 | 2.88 | 2.87 | 2.83 | 2.76 | 2.62 | 2.50 | 2.46 | 2.43 | 2.43 | 2.52 | 2.58 | 2.64 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $90,120,000K ÷ $36,089,000K
= 2.50
United Parcel Service, Inc.'s fixed asset turnover ratio has been consistent and relatively stable over the past eight quarters. The ratio has shown a decreasing trend from Q4 2022 to Q1 2023, reaching its lowest point of 2.83 and then increased slightly to 2.46 in Q4 2023. This indicates that the company generated $2.46 in revenue for every dollar invested in fixed assets in the most recent quarter.
Overall, the fixed asset turnover ratio for United Parcel Service, Inc. has ranged between 2.46 and 3.01 over the past two years, with an average of approximately 2.85. This implies that the company efficiently utilizes its fixed assets to generate revenue, as a higher ratio indicates that the company is generating more sales relative to its investment in fixed assets.
The slight fluctuation in the fixed asset turnover ratio may be influenced by various factors, such as changes in sales volume, asset utilization, or capital expenditures. However, the general consistency of the ratio suggests that United Parcel Service, Inc. has been effectively managing and utilizing its fixed assets to drive revenue growth.
See also:
United Parcel Service Inc Net Fixed Asset Turnover (Quarterly Data)