United Parcel Service Inc (UPS)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 5,782,000 | 5,666,000 | 5,254,000 | 5,926,000 | 6,708,000 | 8,556,000 | 10,013,000 | 10,781,000 | 11,548,000 | 11,188,000 | 10,933,000 | 10,760,000 | 12,890,000 | 6,534,000 | 6,162,000 | 5,254,000 | 1,427,000 | 4,584,000 | 4,377,000 | 4,294,000 |
| Total stockholders’ equity | US$ in thousands | 16,718,000 | 16,857,000 | 17,030,000 | 16,909,000 | 17,306,000 | 19,168,000 | 20,019,000 | 20,038,000 | 19,786,000 | 16,968,000 | 16,289,000 | 15,416,000 | 14,253,000 | 12,041,000 | 10,805,000 | 7,147,000 | 741,000 | 5,592,000 | 4,363,000 | 3,313,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $5,782,000K ÷ $16,718,000K
= 34.59%
United Parcel Service Inc's return on equity (ROE) has shown fluctuating trends over the years based on the provided data. The ROE was high at 129.61% as of March 31, 2020, indicating strong profitability relative to shareholders' equity. Subsequently, the ROE declined but remained above 50% until June 30, 2021.
However, from September 30, 2021, the ROE started a downward trend, dropping to 44.64% by September 30, 2023. This decline indicates a decrease in the company's ability to generate profits from shareholders' equity. By the end of December 31, 2024, the ROE slightly increased to 34.59% but remained significantly lower compared to previous periods.
Overall, the decreasing trend in ROE from 2021 to 2024 suggests that United Parcel Service Inc may be facing challenges in efficiently utilizing equity to generate profits, which could be a concern for investors and stakeholders. Further analysis of the company's financial performance and strategies may be warranted to address and improve this declining trend in ROE.
See also:
United Parcel Service Inc Return on Equity (ROE) (Quarterly Data)