United Parcel Service Inc (UPS)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.17 | 1.14 | 1.25 | 1.10 | 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 |
| Quick ratio | 0.38 | 0.40 | 0.43 | 0.31 | 0.34 | 0.46 | 0.54 | 0.58 | 0.42 | 0.64 | 0.70 | 0.74 | 0.60 | 0.68 | 0.63 | 0.50 | 0.37 | 0.60 | 0.57 | 0.60 |
| Cash ratio | 0.38 | 0.40 | 0.43 | 0.31 | 0.34 | 0.46 | 0.54 | 0.58 | 0.42 | 0.64 | 0.70 | 0.74 | 0.60 | 0.68 | 0.63 | 0.50 | 0.37 | 0.60 | 0.57 | 0.60 |
United Parcel Service Inc's current ratio has shown fluctuations over the years, ranging from 1.10 to 1.52. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Despite some variability, the current ratio has generally been above 1, indicating that UPS has been able to meet its short-term obligations.
In terms of the quick ratio, UPS has also experienced fluctuations, ranging from 0.31 to 0.74. The quick ratio provides a more stringent measure of liquidity as it excludes inventory from current assets. The company's quick ratio has generally been below 1, suggesting that UPS may have difficulty meeting its short-term obligations without relying on selling inventory.
The cash ratio for UPS has followed a similar trend to the quick ratio, fluctuating between 0.31 and 0.74. The cash ratio specifically measures the company's ability to cover its current liabilities with the cash and cash equivalents on hand. Like the quick ratio, the cash ratio has generally been below 1, indicating that UPS may have limited ability to cover its short-term obligations solely with its cash reserves.
Overall, UPS's liquidity ratios show some variability but generally point to the company's ability to meet its short-term obligations. However, the lower quick and cash ratios suggest that UPS may need to rely on other assets or external financing to cover its short-term liabilities.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 4.04 | 0.00 | 0.00 | 4.42 | 4.47 | 0.00 | 0.00 | 0.00 | 3.72 | 0.00 | 0.00 | 0.00 | 3.17 | 0.00 | 0.00 | 5.18 | 2.95 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of United Parcel Service Inc has shown variations in the past years. The cycle, which represents the time it takes for a company to convert its resources into cash flows, has fluctuated between periods of efficiency and inefficiency.
In the first quarter of 2020, the company achieved a cash conversion cycle of 0.00 days, indicating a seamless transition from cash outflows to inflows. This efficiency continued through the midyear of 2020. However, by the end of 2020, there was a slight increase in the cycle to 2.95 days, suggesting a longer time for the company to convert its resources into cash.
The trend continued into the first quarter of 2021, with a further increase to 5.18 days, indicating a potential slowing down in cash conversion efficiency. However, this was followed by a return to 0.00 days in the subsequent quarters of 2021 and 2022.
In the last reported period of December 31, 2024, the cash conversion cycle increased to 4.04 days, signaling a delay in the company's ability to convert its resources into cash efficiently compared to previous periods.
Overall, while the company has demonstrated periods of strong cash conversion efficiency, there have been instances of slower cash conversion cycles. It would be essential for United Parcel Service Inc to monitor and manage its working capital effectively to optimize its cash conversion cycle for improved financial performance and liquidity management.