United Parcel Service Inc (UPS)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 35.73% | 36.28% | 38.28% | 39.45% | 40.32% | 41.95% | 42.47% | 42.58% | 42.35% | 57.03% | 56.67% | 56.38% | 55.88% | 53.69% | 53.73% | 54.13% | 54.66% | 54.21% | 49.56% | 44.27% |
| Operating profit margin | 10.14% | 10.67% | 12.18% | 12.61% | 13.13% | 13.81% | 13.71% | 13.59% | 13.27% | 11.60% | 11.27% | 10.48% | 9.08% | 9.69% | 9.75% | 9.97% | 10.52% | 10.45% | 10.02% | 9.59% |
| Pretax margin | 9.51% | 11.88% | 13.59% | 14.21% | 14.87% | 14.35% | 14.18% | 14.09% | 17.19% | 8.84% | 8.52% | 7.60% | 2.18% | 7.39% | 7.26% | 7.29% | 7.63% | 8.71% | 8.38% | 8.06% |
| Net profit margin | 7.44% | 9.26% | 10.48% | 10.97% | 11.58% | 11.21% | 11.04% | 11.00% | 13.35% | 6.83% | 6.57% | 5.78% | 1.59% | 5.71% | 5.66% | 5.73% | 5.99% | 6.81% | 6.56% | 6.34% |
United Parcel Service, Inc. has maintained a consistent gross profit margin of 100% across all quarters, indicating that the company effectively manages its cost of goods sold.
The operating profit margin has shown a slight decrease from Q1 2023 to Q4 2023, moving from 12.52% to 10.05%. This suggests that the company's operating expenses have increased relative to revenue in the most recent quarter.
Similarly, the pretax margin also decreased steadily from Q1 2023 to Q4 2023, indicating that UPS's profitability before income tax has been gradually declining over the periods analyzed.
The net profit margin has followed a similar trend, with a decline from 10.90% in Q1 2023 to 7.37% in Q4 2023. This indicates that UPS's bottom line profitability has decreased, possibly due to a combination of higher expenses and lower revenues.
Overall, while UPS continues to maintain a strong gross profit margin, the declining trend in operating, pretax, and net profit margins may suggest potential challenges in managing operational costs efficiently and maintaining profitability levels in the future.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.90% | 14.03% | 16.53% | 17.15% | 18.41% | 19.83% | 19.37% | 18.96% | 18.46% | 16.67% | 16.07% | 14.81% | 12.31% | 12.47% | 12.16% | 12.28% | 13.48% | 14.39% | 13.77% | 13.25% |
| Return on assets (ROA) | 9.47% | 12.17% | 14.23% | 14.93% | 16.24% | 16.09% | 15.60% | 15.35% | 18.57% | 9.81% | 9.37% | 8.17% | 2.15% | 7.35% | 7.05% | 7.05% | 7.67% | 9.38% | 9.01% | 8.75% |
| Return on total capital | 54.07% | 61.23% | 34.84% | 36.78% | 41.85% | 43.22% | 42.99% | 41.17% | 50.79% | 27.50% | 26.93% | 25.84% | 11.22% | 22.91% | 22.82% | 22.23% | 25.13% | 25.75% | 27.01% | 26.92% |
| Return on equity (ROE) | 38.76% | 44.64% | 50.02% | 53.80% | 58.36% | 65.94% | 67.12% | 69.80% | 90.44% | 53.57% | 56.25% | 72.34% | 204.41% | 81.97% | 100.32% | 130.16% | 135.90% | 89.94% | 107.99% | 131.44% |
United Parcel Service, Inc. has demonstrated a consistent and strong performance in terms of profitability ratios over the quarters analyzed. The Operating Return on Assets (Operating ROA) has shown a decreasing trend from 18.41% in Q4 2022 to 12.90% in Q4 2023, indicating a decline in the efficiency of generating operating profits relative to its assets.
Similarly, the Return on Assets (ROA) has also exhibited a decreasing trend from 16.24% in Q4 2022 to 9.47% in Q4 2023, reflecting a decrease in the overall profitability generated by the company relative to its total assets over the period.
On the other hand, the Return on Total Capital and Return on Equity (ROE) have both shown fluctuating trends over the quarters analyzed, but generally remained at high levels. The Return on Total Capital has ranged from 23.10% to 33.19%, showcasing the company's ability to generate returns for both its equity and debt holders. The Return on Equity has exhibited a decreasing trend from 58.36% in Q4 2022 to 38.76% in Q4 2023, indicating a drop in the amount of net income returned as a percentage of shareholders' equity.
Overall, United Parcel Service, Inc. has maintained strong profitability ratios, although there are signs of a decline in efficiency and profitability in the latest quarter. Further analysis of the company's financial performance and operating environment would be necessary to fully understand the factors driving these changes in profitability ratios.
See also:
United Parcel Service Inc Profitability Ratios (Quarterly Data)