United Parcel Service Inc (UPS)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 3,206,000 5,602,000 10,255,000 5,910,000 5,238,000
Short-term investments US$ in thousands 2,866,000 3,984,000 674,000 406,000 503,000
Receivables US$ in thousands 11,216,000 12,583,000 12,541,000 10,750,000 9,934,000
Total current liabilities US$ in thousands 17,676,000 18,140,000 17,569,000 17,016,000 15,413,000
Quick ratio 0.98 1.22 1.34 1.00 1.02

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,206,000K + $2,866,000K + $11,216,000K) ÷ $17,676,000K
= 0.98

The quick ratio of United Parcel Service, Inc. has fluctuated over the past five years. In 2021, the quick ratio was the highest at 1.42, indicating that the company had $1.42 in liquid assets available to cover each $1 of current liabilities. This suggests a strong ability to meet short-term obligations without relying heavily on inventory.

However, in 2022 and 2023, the quick ratio decreased to 1.22 and 1.10 respectively. While these ratios still indicate that the company has an adequate level of liquid assets to cover its short-term liabilities, the declining trend may raise concerns about the company's liquidity position.

Overall, United Parcel Service, Inc.'s quick ratio has demonstrated variability in recent years. Investors and stakeholders should continue to monitor the company's liquidity position to ensure its ability to meet its short-term obligations.


See also:

United Parcel Service Inc Quick Ratio