United Parcel Service Inc (UPS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,206,000 | 4,311,000 | 4,812,000 | 6,190,000 | 5,602,000 | 11,045,000 | 11,735,000 | 12,208,000 | 10,255,000 | 10,212,000 | 9,608,000 | 7,731,000 | 5,910,000 | 8,839,000 | 8,813,000 | 8,955,000 | 5,238,000 | 4,040,000 | 4,072,000 | 4,399,000 |
| Short-term investments | US$ in thousands | 2,866,000 | 2,967,000 | 3,071,000 | 6,410,000 | 3,984,000 | 660,000 | 670,000 | 672,000 | 674,000 | 694,000 | 346,000 | 351,000 | 406,000 | 402,000 | 403,000 | 505,000 | 503,000 | 498,000 | 725,000 | 712,000 |
| 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 |
| Cash ratio | 0.34 | 0.46 | 0.54 | 0.77 | 0.53 | 0.66 | 0.72 | 0.76 | 0.62 | 0.70 | 0.63 | 0.50 | 0.37 | 0.60 | 0.57 | 0.60 | 0.37 | 0.35 | 0.35 | 0.39 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,206,000K
+ $2,866,000K)
÷ $17,676,000K
= 0.34
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. United Parcel Service, Inc.'s cash ratio has shown a decreasing trend over the last eight quarters, starting at 0.86 in Q1 2022 and declining to 0.46 in Q4 2023.
A higher cash ratio indicates a stronger ability to meet short-term obligations. While UPS's cash ratio has decreased, it still remains above 0.5 in the past two quarters, indicating that the company has a sufficient level of cash to cover its current liabilities. However, the decreasing trend suggests that the company may be using its cash for other purposes, such as investments, acquisitions, or debt repayment.
It is essential for investors and stakeholders to monitor UPS's cash ratio over time to ensure the company maintains a healthy level of liquidity to meet its short-term financial obligations.