United Parcel Service Inc (UPS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 9,141,000 | 13,094,000 | 12,810,000 | 7,684,000 | 7,798,000 |
| Total assets | US$ in thousands | 70,857,000 | 71,124,000 | 69,405,000 | 62,408,000 | 57,857,000 |
| Operating ROA | 12.90% | 18.41% | 18.46% | 12.31% | 13.48% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $9,141,000K ÷ $70,857,000K
= 12.90%
United Parcel Service, Inc.'s operating return on assets (ROA) has demonstrated some fluctuations over the past five years. In 2023, the operating ROA stands at 12.90%, showing a decrease from the previous year's level of 18.41% in 2022. Comparing to 2021, there is a slight decline in the operating ROA from 18.46% to 12.90%.
Although the current operating ROA is lower than the levels achieved in 2021 and 2022, it is still higher than the figures reported in 2020 and 2019, which were 12.31% and 13.48%, respectively. This indicates a mixed performance in terms of utilizing assets to generate operating profits.
Overall, the fluctuating trend in United Parcel Service, Inc.'s operating ROA suggests potential shifts in the company's operational efficiency and profitability over the years, warranting further analysis to understand the underlying factors driving these changes.