United Parcel Service Inc (UPS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,708,000 | 11,548,000 | 12,890,000 | 1,343,000 | 4,440,000 |
| Total assets | US$ in thousands | 70,857,000 | 71,124,000 | 69,405,000 | 62,408,000 | 57,857,000 |
| ROA | 9.47% | 16.24% | 18.57% | 2.15% | 7.67% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $6,708,000K ÷ $70,857,000K
= 9.47%
United Parcel Service, Inc.'s return on assets (ROA) has fluctuated over the past five years. In 2023, the ROA stood at 9.47%, showing a decline from the previous year's 16.24%. This decrease indicates that the company's ability to generate earnings from its assets diminished in 2023 compared to 2022. However, the ROA in 2023 is still relatively higher than the 2020 figure of 2.15%. In 2021, the ROA was at a robust 18.57%, reflecting a strong performance in utilizing its assets to generate profits. The 2019 ROA was 7.67%, indicating an improvement in asset utilization compared to 2020 but lower than the subsequent years. Overall, the trend in the ROA for United Parcel Service, Inc. demonstrates variability in the company's efficiency in generating earnings from its assets during the period under consideration.