United Parcel Service Inc (UPS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 19,413,000 | 22,217,000 | 24,934,000 | 20,216,000 | 17,103,000 |
| Total current liabilities | US$ in thousands | 17,676,000 | 18,140,000 | 17,569,000 | 17,016,000 | 15,413,000 |
| Current ratio | 1.10 | 1.22 | 1.42 | 1.19 | 1.11 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $19,413,000K ÷ $17,676,000K
= 1.10
The current ratio of United Parcel Service, Inc. has shown some fluctuations over the past five years. The current ratio indicates a company's ability to cover its short-term liabilities with its short-term assets. A ratio above 1 suggests that a company has more current assets than current liabilities, which is generally seen as a positive sign of liquidity.
In 2023, the current ratio of United Parcel Service, Inc. decreased to 1.10 from 1.22 in 2022. This decline may raise concerns about the company's ability to meet its short-term obligations using its current assets. A lower current ratio could indicate potential liquidity challenges.
Comparing to the ratio in 2021, which was 1.42, the current ratio has shown a significant decrease in 2023. This notable drop in the current ratio may signal that the company's current assets have decreased relative to its current liabilities, possibly indicating a shift in the company's liquidity position.
In comparison to the ratios in 2020 and 2019, where the current ratios were 1.19 and 1.11, respectively, the current ratio in 2023 remains above those levels, suggesting a relatively better liquidity position compared to the earlier years.
Overall, while the current ratio of United Parcel Service, Inc. decreased in 2023, it is essential to monitor future trends in this ratio to assess the company's liquidity position effectively.