United Parcel Service Inc (UPS)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover	90.39	—	—	82.52	81.71	—	—	—	98.14	—	—	—	115.29	—	—	70.48	123.89	—	—	—
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	31.71	41.50	23.92	60.57	52.36	27.10	20.23	18.10	24.61	14.61	12.16	11.27	13.21	12.81	14.87	19.13	25.77	17.95	19.57	21.16

The analysis of United Parcel Service Inc's activity ratios reveals the following trends:

1. Inventory Turnover:
- The inventory turnover ratio fluctuated over the years, with a significant decrease from 123.89 in December 2020 to 81.71 in December 2023, before slightly increasing to 90.39 in December 2024.
- A lower inventory turnover ratio may indicate slower sales or excess inventory levels, which could lead to higher carrying costs and potential obsolescence.

2. Receivables Turnover:
- The receivables turnover data is not available for all periods, indicating a lack of information to assess the efficiency of the company in collecting its accounts receivable.
- A higher receivables turnover ratio is generally preferred as it indicates that the company is collecting its receivables quickly.

3. Payables Turnover:
- Similar to receivables turnover, payables turnover data is not provided for the periods, making it challenging to evaluate how efficiently the company is managing its accounts payable.
- A higher payables turnover ratio may suggest that the company is paying its suppliers promptly.

4. Working Capital Turnover:
- The working capital turnover ratio shows varying values over the years, suggesting fluctuations in how efficiently the company is utilizing its working capital to generate sales.
- A higher working capital turnover ratio indicates that the company is effectively using its working capital to support business operations and generate revenue.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into United Parcel Service Inc's operational efficiency, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity performance.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	4.04	—	—	4.42	4.47	—	—	—	3.72	—	—	—	3.17	—	—	5.18	2.95	—	—	—
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

United Parcel Service Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- The DOH decreased from 2.95 days on December 31, 2020, to 4.42 days on March 31, 2024.
- This indicates that the company has been holding inventory for a slightly longer period in recent quarters, possibly due to changes in demand or supply chain disruptions.

2. Days of Sales Outstanding (DSO):
- DSO data is unavailable, suggesting that the company does not disclose information on how quickly it collects receivables from customers.

3. Number of Days of Payables:
- The number of days of payables is also unavailable, making it difficult to assess how efficiently the company manages its payment obligations to suppliers.

In conclusion, while the information on inventory management shows a slight increase in the holding period, the lack of data on receivables and payables hinders a comprehensive analysis of United Parcel Service Inc's overall activity and efficiency in managing its working capital.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Fixed asset turnover	—	—	—	—	—	2.32	2.42	2.53	2.61	2.73	2.71	2.66	2.63	2.60	2.55	2.76	2.62	2.50	2.46	2.43
Total asset turnover	1.30	1.33	1.29	1.33	1.28	1.32	1.37	1.37	1.41	1.45	1.43	1.41	1.40	1.44	1.43	1.41	1.35	1.29	1.25	1.23

United Parcel Service Inc's fixed asset turnover ratio has shown a generally increasing trend over the reporting periods, indicating that the company is generating more revenue relative to its investment in fixed assets. The ratio increased from 2.43 in March 2020 to a peak of 2.73 in September 2022 before slightly declining to 2.42 in June 2023. However, there was a notable drop to 2.32 in September 2023, which may suggest a decrease in efficiency in utilizing fixed assets.

In terms of total asset turnover, the ratio has fluctuated over the periods but generally trended downwards. It started at 1.23 in March 2020, reached a peak of 1.45 in September 2022, and then decreased to 1.30 by December 2024. The downward trend indicates a decreasing ability to generate sales relative to total assets. The ratios show that while UPS has been efficient in utilizing its fixed assets to generate revenue, its overall asset turnover has weakened over the reporting periods.