United Parcel Service Inc (UPS)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 91,070,000 | 90,958,000 | 100,338,000 | 97,287,000 | 84,628,000 |
| Total assets | US$ in thousands | 70,070,000 | 70,857,000 | 71,124,000 | 69,405,000 | 62,492,000 |
| Total asset turnover | 1.30 | 1.28 | 1.41 | 1.40 | 1.35 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $91,070,000K ÷ $70,070,000K
= 1.30
United Parcel Service Inc's total asset turnover has shown some fluctuations over the years. The company's total asset turnover ratio was 1.35 in December 31, 2020, indicating that for every dollar of total assets held, the company generated $1.35 in revenue. This ratio improved to 1.40 in December 31, 2021, and further increased to 1.41 in December 31, 2022, suggesting an efficient utilization of assets to generate sales.
However, there was a slight decline in the total asset turnover to 1.28 in December 31, 2023, which may indicate a decrease in revenue generated per dollar of total assets. The ratio improved marginally to 1.30 in December 31, 2024, but still remained below the levels seen in the previous years.
Overall, United Parcel Service Inc's total asset turnover has demonstrated mixed performance, with periods of improvement and slight declines. It is important for the company to continue monitoring and managing the efficiency of its asset utilization to drive revenue growth and overall profitability.