United Parcel Service Inc (UPS)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.10 | 1.22 | 1.32 | 1.34 | 1.22 | 1.39 | 1.47 | 1.52 | 1.42 | 1.48 | 1.39 | 1.29 | 1.19 | 1.29 | 1.24 | 1.22 | 1.11 | 1.11 | 1.09 | 1.13 |
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 a declining trend over the past eight quarters. It decreased from 1.52 in Q1 2022 to 1.10 in Q4 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has weakened over time.
A current ratio below 1.0 would typically raise concerns about a company's liquidity and its ability to cover its short-term liabilities. While UPS's current ratio has not fallen below 1.0, the downward trend suggests a potential strain on its liquidity position.
It is important for investors and stakeholders to monitor this trend closely, as a low current ratio could indicate potential liquidity problems, affecting the company's ability to fund its operations and investments. UPS may need to focus on managing its current assets and liabilities efficiently to improve its liquidity position in the future.