United Parcel Service Inc (UPS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 70,070,000 | 70,857,000 | 71,124,000 | 69,405,000 | 62,492,000 |
| Operating ROA | 12.09% | 12.90% | 18.41% | 24.88% | 4.22% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $8,468,000K ÷ $70,070,000K
= 12.09%
The operating return on assets (Operating ROA) for United Parcel Service Inc has seen a significant improvement over the years. Starting at 4.22% on December 31, 2020, it surged to 24.88% by December 31, 2021, indicating a notable increase in efficiency in generating operating income from its assets. By December 31, 2022, the Operating ROA stood at 18.41%, still reflecting a robust performance compared to the base year.
However, there was a slight decline in the Operating ROA in the following years, with a decrease to 12.90% by December 31, 2023, and further to 12.09% by December 31, 2024. While these figures showcase a slight dip, United Parcel Service Inc continues to maintain a healthy level of operating return on assets, demonstrating its ability to effectively utilize its asset base to generate operating income.
Overall, the trend in Operating ROA indicates an initial surge followed by a stabilization at a relatively high level, showcasing United Parcel Service Inc's efficiency and effectiveness in utilizing its assets to drive operating performance.