United Parcel Service Inc (UPS)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 20,216,000 | 19,930,000 | 20,226,000 | 19,389,000 | 17,103,000 | 14,184,000 | 14,843,000 | 14,904,000 |
| Total current liabilities | US$ in thousands | 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 | 15,413,000 | 12,835,000 | 13,633,000 | 13,209,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $90,120,000K ÷ ($19,413,000K – $17,676,000K)
= 51.88
United Parcel Service, Inc.'s working capital turnover has shown fluctuating trends over the past eight quarters, indicating the efficiency with which the company utilizes its working capital to generate revenue. The working capital turnover ratio measures how effectively a company utilizes its short-term assets to support sales.
In Q4 2023, the working capital turnover ratio of 52.36 indicates that for every dollar of working capital, United Parcel Service generated $52.36 in revenue. This represents a significant improvement compared to the previous quarter and is substantially higher than the ratios observed over the past two years.
Overall, the data suggests that United Parcel Service has been effectively managing its working capital to support revenue generation. However, it is essential to monitor this ratio over time to assess the company's ongoing efficiency in utilizing its working capital resources.
See also:
United Parcel Service Inc Working Capital Turnover (Quarterly Data)