United Parcel Service Inc (UPS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,782,000 | 6,708,000 | 11,548,000 | 12,890,000 | 1,343,000 |
| Total assets | US$ in thousands | 70,070,000 | 70,857,000 | 71,124,000 | 69,405,000 | 62,492,000 |
| ROA | 8.25% | 9.47% | 16.24% | 18.57% | 2.15% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $5,782,000K ÷ $70,070,000K
= 8.25%
United Parcel Service Inc's return on assets (ROA) has demonstrated significant fluctuations over the past five years. The ROA stood at 2.15% as of December 31, 2020, indicating the company generated $0.0215 in net income for every dollar of assets. This figure surged to 18.57% by December 31, 2021, signifying a substantial improvement in asset efficiency and profitability.
In the subsequent years, the ROA remained relatively strong, reaching 16.24% by December 31, 2022, and then declining to 9.47% by December 31, 2023. Despite the decrease, the company continued to generate a decent return relative to its asset base. By the end of December 31, 2024, the ROA further decreased to 8.25%, potentially indicating a challenge in maintaining or improving asset productivity and profitability.
Overall, the fluctuating trend in ROA suggests varying levels of asset utilization and efficiency within United Parcel Service Inc during the period under review. Further analysis of the company's financial performance and operational strategies may be warranted to understand the underlying factors driving these fluctuations in return on assets.