United Parcel Service Inc (UPS)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 8,573,000 | 14,825,000 | 16,595,000 | 1,844,000 | 5,652,000 |
| Revenue | US$ in thousands | 90,120,000 | 99,706,000 | 96,557,000 | 83,936,000 | 73,435,000 |
| Pretax margin | 9.51% | 14.87% | 17.19% | 2.20% | 7.70% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $8,573,000K ÷ $90,120,000K
= 9.51%
The pretax margin of United Parcel Service, Inc. has fluctuated over the past five years. It decreased from 7.63% in 2019 to 2.18% in 2020, indicating a significant decline in profitability. However, the company managed to improve its pretax margin in the following years, reaching 17.06% in 2021, which represented a strong recovery. The pretax margin then decreased to 14.78% in 2022 and further to 9.43% in 2023.
Overall, the trend in the pretax margin of United Parcel Service, Inc. shows variability in profitability over the years. It is important for the company to continue monitoring and managing its operating expenses and revenue generation to sustain and improve its pretax margin in the future.