United Parcel Service Inc (UPS)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 90,982,000 | 90,598,000 | 89,414,000 | 89,698,000 | 90,958,000 | 93,074,000 | 96,174,000 | 98,885,000 | 100,338,000 | 101,076,000 | 100,099,000 | 98,757,000 | 97,287,000 | 94,412,000 | 92,466,000 | 89,501,000 | 84,628,000 | 80,300,000 | 77,380,000 | 74,969,000 |
| Total current assets | US$ in thousands | 19,310,000 | 17,264,000 | 18,823,000 | 16,177,000 | 19,413,000 | 19,251,000 | 19,439,000 | 21,725,000 | 22,217,000 | 24,598,000 | 25,571,000 | 25,601,000 | 24,934,000 | 22,843,000 | 21,988,000 | 20,985,000 | 20,300,000 | 19,930,000 | 20,226,000 | 19,389,000 |
| Total current liabilities | US$ in thousands | 16,441,000 | 15,081,000 | 15,085,000 | 14,696,000 | 17,676,000 | 15,817,000 | 14,686,000 | 16,262,000 | 18,140,000 | 17,679,000 | 17,337,000 | 16,842,000 | 17,569,000 | 15,472,000 | 15,770,000 | 16,306,000 | 17,016,000 | 15,456,000 | 16,271,000 | 15,846,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $90,982,000K ÷ ($19,310,000K – $16,441,000K)
= 31.71
United Parcel Service Inc's working capital turnover has shown fluctuations over the periods provided in the data. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher turnover ratio indicates better efficiency in using working capital.
From March 31, 2020, to June 30, 2020, the ratio decreased from 21.16 to 19.57, suggesting a slight decline in efficiency. Subsequently, the ratio continued to decrease till September 30, 2021, reaching its lowest point of 12.81. This could signal inefficiencies in the management of working capital during this period.
However, from December 31, 2021, to December 31, 2024, there was a significant improvement in the working capital turnover ratio, rising from 13.21 to 31.71. This surge points to enhanced efficiency in utilizing working capital to generate revenue for the company. The peaks in March 31, 2024, and June 30, 2024, at 60.57 and 23.92 respectively, indicate the company's ability to efficiently convert working capital into sales.
Overall, United Parcel Service Inc's working capital turnover ratio fluctuated over the periods provided, reflecting varying levels of efficiency in managing working capital to drive sales revenue. It is essential for the company to maintain a balance in working capital management to sustain and improve its operational efficiency in generating revenue.
See also:
United Parcel Service Inc Working Capital Turnover (Quarterly Data)