United Parcel Service Inc (UPS)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 8,468,000 | 9,141,000 | 13,094,000 | 17,267,000 | 2,638,000 |
| Revenue | US$ in thousands | 91,070,000 | 90,958,000 | 100,338,000 | 97,287,000 | 84,628,000 |
| Operating profit margin | 9.30% | 10.05% | 13.05% | 17.75% | 3.12% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $8,468,000K ÷ $91,070,000K
= 9.30%
The operating profit margin of United Parcel Service Inc has shown notable fluctuations over the period from December 31, 2020, to December 31, 2024. Starting at 3.12% in 2020, the margin experienced a substantial increase to 17.75% by the end of 2021, reflecting a significant improvement in the company's operational efficiency and profitability. However, in the subsequent years, the operating profit margin declined to 13.05% in 2022, followed by further decreases to 10.05% in 2023 and 9.30% in 2024.
The decrease in the operating profit margin in the latter years could be indicative of various factors such as increasing costs, pricing pressures, or changes in operating efficiencies. It is important for United Parcel Service Inc to closely monitor and analyze the underlying reasons for the declining trend to implement strategic measures that can help enhance operational performance and sustain profitability in the future.