United Parcel Service Inc (UPS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 17.94% | 17.53% | 18.55% | 17.38% | 16.01% | 13.90% | 12.09% | 12.52% | 13.05% | 13.64% | 15.37% | 15.30% | 15.03% | 13.66% | 11.41% | 10.62% | 9.23% | 9.69% | 9.75% | 9.97% |
| Operating profit margin | 9.39% | 8.94% | 8.72% | 9.64% | 10.42% | 12.38% | 13.47% | 13.86% | 14.37% | 13.64% | 13.56% | 13.74% | 13.44% | 12.03% | 11.70% | 10.62% | 9.23% | 9.69% | 9.75% | 9.97% |
| Pretax margin | 8.18% | 8.14% | 7.53% | 8.46% | 9.43% | 11.79% | 13.49% | 14.11% | 14.78% | 14.17% | 14.03% | 13.96% | 17.06% | 8.98% | 8.66% | 7.74% | 2.33% | 7.39% | 7.26% | 7.29% |
| Net profit margin | 6.36% | 6.25% | 5.88% | 6.61% | 7.37% | 9.19% | 10.41% | 10.90% | 11.51% | 11.07% | 10.92% | 10.90% | 13.25% | 6.92% | 6.66% | 5.87% | 1.69% | 5.71% | 5.66% | 5.73% |
United Parcel Service Inc's profitability has shown fluctuations over the past five years based on its key profitability ratios. The gross profit margin has exhibited an upward trend from around 9.97% in March 2020 to a peak of 18.55% in June 2024 before settling at 17.94% in December 2024. This indicates an improvement in the company's ability to generate profit from its core business operations.
Similarly, the operating profit margin has been relatively stable, with some fluctuations, reaching a high of 14.37% in December 2022. However, it declined to 8.72% in June 2024, showing some volatility in the company's operational efficiency.
The pretax margin also experienced fluctuations, with a significant increase in profitability in December 2021, where it reached 17.06%. However, it declined in the following years, with a dip to 7.53% in June 2024. This suggests variability in the company's ability to manage its pre-tax earnings and expenses effectively.
Lastly, the net profit margin has shown a downward trend from 5.73% in March 2020 to 6.36% in December 2024. This indicates a decreasing trend in the company's ability to convert revenue into net profit, possibly due to factors such as rising costs or lower sales.
Overall, while United Parcel Service Inc has demonstrated improvements in its gross profit margin and some fluctuations in its operating profit margin, the fluctuations in pretax and net profit margins suggest a need for further analysis to identify and address underlying factors affecting profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 8.25% | 8.30% | 7.57% | 8.76% | 9.47% | 12.17% | 14.23% | 14.93% | 16.24% | 16.09% | 15.60% | 15.35% | 18.57% | 9.94% | 9.50% | 8.30% | 2.28% | 7.35% | 7.05% | 7.05% |
| Return on total capital | 50.49% | 52.03% | 47.76% | 53.16% | 56.60% | 52.18% | 59.67% | 64.05% | 69.83% | 81.49% | 83.72% | 86.52% | 90.89% | 50.64% | 51.61% | 65.09% | 388.12% | 121.12% | 147.17% | 184.91% |
| Return on equity (ROE) | 34.59% | 33.61% | 30.85% | 35.05% | 38.76% | 44.64% | 50.02% | 53.80% | 58.36% | 65.94% | 67.12% | 69.80% | 90.44% | 54.26% | 57.03% | 73.51% | 192.58% | 81.97% | 100.32% | 129.61% |
United Parcel Service Inc's profitability ratios show a mixed performance over the periods analyzed. The Operating Return on Assets (Operating ROA) has exhibited an increasing trend from 12.28% as of March 31, 2020, reaching a peak of 20.27% by December 31, 2022, before declining slightly to 12.20% as of December 31, 2024. This indicates the company's ability to generate profit from its operational assets, with some fluctuations in recent periods.
Return on Assets (ROA) also showed variability, starting at 7.05% in March 31, 2020, peaking at 18.57% by December 31, 2021, and then gradually declining to 8.25% by December 31, 2024. This metric reflects the company's overall efficiency in utilizing its total assets to generate earnings, with a significant increase and subsequent decrease over the years.
Return on Total Capital reveals fluctuations in profitability as well, with a notable decrease from 184.91% in March 31, 2020, to 47.76% by June 30, 2024. This metric shows how well the company is generating returns for both its equity and debt holders, indicating a decrease in profitability relative to the capital invested in the business over the period under review.
Return on Equity (ROE) also presents a declining trend, starting at 129.61% in March 31, 2020, and decreasing to 34.59% by December 31, 2024. This metric reflects the company’s ability to generate profits from the shareholders' equity, showing a consistent decrease over the analyzed periods.
Overall, while there have been fluctuations in United Parcel Service Inc's profitability ratios, the declining trends in ROA, Return on Total Capital, and ROE suggest a potential decrease in profitability relative to assets, capital, and equity invested in the company over the period under review. It may be worth further analysis to understand the factors contributing to these fluctuations and trends in profitability ratios.
See also:
United Parcel Service Inc Profitability Ratios (Quarterly Data)