United Parcel Service Inc (UPS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 19,310,000 | 19,413,000 | 22,217,000 | 24,934,000 | 20,300,000 |
| Total current liabilities | US$ in thousands | 16,441,000 | 17,676,000 | 18,140,000 | 17,569,000 | 17,016,000 |
| Current ratio | 1.17 | 1.10 | 1.22 | 1.42 | 1.19 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $19,310,000K ÷ $16,441,000K
= 1.17
The current ratio of United Parcel Service Inc has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 1.19, indicating that the company had $1.19 in current assets for every dollar of current liabilities. This ratio improved to 1.42 by December 31, 2021, suggesting a stronger liquidity position. However, by December 31, 2022, the current ratio decreased to 1.22, although it remained above 1, indicating that the company still had sufficient current assets to cover its short-term obligations.
By December 31, 2023, the current ratio further decreased to 1.10, raising potential concerns about the company's ability to cover its current liabilities with available current assets. However, by December 31, 2024, the current ratio improved slightly to 1.17, indicating a modest strengthening of the company's liquidity position. Overall, while the current ratio fluctuated over the years, United Parcel Service Inc generally maintained a position where it had more current assets than current liabilities, although the ratio dipped below 1 in 2023, requiring careful monitoring for liquidity risks.