United Parcel Service Inc (UPS)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 8,546,000 | 8,097,000 | 7,793,000 | 8,644,000 | 9,479,000 | 11,522,000 | 12,954,000 | 13,709,000 | 14,419,000 | 13,790,000 | 13,573,000 | 13,566,000 | 13,080,000 | 11,356,000 | 10,823,000 | 9,507,000 | 7,814,000 | 7,780,000 | 7,545,000 | 7,476,000 |
| Total assets | US$ in thousands | 70,070,000 | 68,263,000 | 69,418,000 | 67,628,000 | 70,857,000 | 70,281,000 | 70,347,000 | 72,189,000 | 71,124,000 | 69,544,000 | 70,089,000 | 70,113,000 | 69,405,000 | 65,739,000 | 64,869,000 | 63,312,000 | 62,492,000 | 62,406,000 | 62,057,000 | 60,895,000 |
| Operating ROA | 12.20% | 11.86% | 11.23% | 12.78% | 13.38% | 16.39% | 18.41% | 18.99% | 20.27% | 19.83% | 19.37% | 19.35% | 18.85% | 17.27% | 16.68% | 15.02% | 12.50% | 12.47% | 12.16% | 12.28% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $8,546,000K ÷ $70,070,000K
= 12.20%
Operating return on assets (ROA) is a financial metric that indicates how efficiently a company is generating profits from its assets used in operations. For United Parcel Service Inc, the operating ROA has shown fluctuating trends over the analyzed period from March 2020 to December 2024.
The operating ROA for UPS started at 12.28% in March 2020 and generally showed a positive trajectory, reaching its peak at 20.27% in December 2022. This upward trend indicates that the company was effectively utilizing its assets to generate operating profits during this period.
However, starting from March 2023, there was a noticeable decline in the operating ROA, dropping to 13.38% by December 2023. This decline continued into the following year, with operating ROA falling to 11.86% in September 2024.
Overall, the operating ROA of UPS displayed a mix of both positive and negative movements over the analyzed period, reflecting fluctuations in the company's operational efficiency and profitability in utilizing its assets. The management may need to focus on improving asset utilization and operational performance to maintain or enhance the operating ROA in the future.