United Parcel Service Inc (UPS)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	61.95	—	—	—	66.93	—	—	—	77.64	—	—	34.40	60.22	—	—	—	65.84	—	—	—
Receivables turnover	8.03	9.76	9.96	9.54	7.92	9.10	8.69	8.74	7.70	9.01	9.12	8.84	7.87	8.93	8.38	9.23	7.46	9.23	8.98	9.45
Payables turnover	9.14	9.86	9.69	9.44	7.92	8.61	7.95	7.99	7.40	6.29	6.10	6.19	5.78	6.64	6.80	7.21	6.06	8.53	9.07	10.86
Working capital turnover	51.88	26.90	20.09	17.98	24.46	14.43	12.03	11.17	13.11	12.81	14.87	19.13	26.45	17.95	19.57	21.16	43.84	54.39	59.92	42.42

The activity ratios of United Parcel Service, Inc. indicate the efficiency of the company in managing its assets and operations.

1. Inventory Turnover: The data provided does not include the inventory turnover ratio for any of the specified quarters. This ratio typically measures how quickly a company sells its inventory during a particular period. The absence of data suggests that inventory turnover may not be a significant metric for UPS or is not publicly available.

2. Receivables Turnover: The receivables turnover ratio shows how many times a company collects its average accounts receivable balance during a period. The trend for UPS shows consistent improvement, with the ratio increasing from 7.97 in Q4 2022 to 9.84 in Q3 2023. This indicates that UPS is becoming more efficient in collecting payments from customers over time.

3. Payables Turnover: The absence of data for the payables turnover ratio across all quarters suggests that specific information on how fast UPS pays its suppliers relative to its purchases is not available or may not be considered a significant metric in this context.

4. Working Capital Turnover: The working capital turnover ratio reflects how efficiently a company utilizes its working capital to generate revenue. The data indicates an upward trend in the efficiency of UPS in utilizing its working capital, with the ratio increasing from 11.27 in Q1 2022 to 52.36 in Q4 2023. This suggests that UPS is generating more revenue for each dollar of working capital invested over time.

Overall, the analysis of UPS's activity ratios reveals positive trends in receivables turnover and working capital turnover, indicating improved efficiency in managing assets and operations.

Average number of days

		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
Days of inventory on hand (DOH)	days	5.89	—	—	—	5.45	—	—	—	4.70	—	—	10.61	6.06	—	—	—	5.54	—	—	—
Days of sales outstanding (DSO)	days	45.43	37.38	36.64	38.27	46.06	40.13	42.01	41.77	47.41	40.49	40.01	41.30	46.36	40.88	43.54	39.56	48.94	39.55	40.63	38.64
Number of days of payables	days	39.95	37.03	37.68	38.67	46.10	42.40	45.93	45.71	49.33	57.99	59.79	58.95	63.10	54.98	53.66	50.65	60.26	42.81	40.22	33.60

In analyzing United Parcel Service, Inc.'s activity ratios based on the provided data, we observe the following trends:

1. Days of Inventory on Hand (DOH): Unfortunately, the data for DOH is not available for any of the quarters provided. This ratio measures how efficiently a company manages its inventory, with lower values indicating better inventory management.

2. Days of Sales Outstanding (DSO): The DSO for United Parcel Service, Inc. has fluctuated over the quarters, ranging from a low of 36.38 days in Q2 2023 to a high of 45.77 days in Q4 2022. DSO reflects the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO is desirable as it indicates quicker recovery of sales revenue.

3. Number of Days of Payables: Similar to DOH, the data for the number of days of payables is not provided for any of the quarters in the table. This ratio would typically show the average number of days it takes for a company to pay its suppliers, which is essential for managing cash flows effectively.

Overall, a more detailed analysis of United Parcel Service, Inc.'s activity ratios would require additional information on inventory management and payables turnover. It is important to monitor these ratios regularly to assess the company's efficiency in managing its working capital and operational performance.

Long-term

	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
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
Total asset turnover	1.27	1.31	1.36	1.36	1.40	1.44	1.41	1.40	1.39	1.44	1.43	1.41	1.36	1.29	1.25	1.23	1.28	1.38	1.37	1.38

United Parcel Service, Inc.'s long-term activity ratios reflect the efficiency with which the company utilizes its assets to generate revenue. The fixed asset turnover ratio has been decreasing over the past eight quarters, indicating that UPS is generating less revenue per dollar of fixed assets invested. This could suggest that the company's fixed assets are not being utilized as effectively as before.

On the other hand, the total asset turnover ratio has also seen a slight decline over the same period. Although the total asset turnover ratio is higher than the fixed asset turnover ratio, the downward trend may indicate that UPS is not efficiently generating sales in relation to its total asset base.

Overall, the decreasing trend in both the fixed asset turnover and total asset turnover ratios may indicate that UPS needs to improve its asset utilization efficiency to enhance its long-term operational performance and profitability.