United Parcel Service Inc (UPS)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 6,450,000 | 6,078,000 | 5,170,000 | 1,343,000 | 4,584,000 | 4,377,000 | 4,294,000 | 4,440,000 | 4,999,000 | 4,757,000 | 4,557,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 657,000 | 5,592,000 | 4,363,000 | 3,299,000 | 3,267,000 | 5,558,000 | 4,405,000 | 3,467,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $6,708,000K ÷ $17,306,000K
= 38.76%
To analyze United Parcel Service, Inc.'s return on equity (ROE) based on the data provided, we can observe a declining trend in ROE over the past eight quarters. The ROE has decreased from 69.80% in Q1 2022 to 38.76% in Q4 2023, indicating a significant drop in the company's profitability relative to its shareholders' equity.
This declining trend may suggest potential concerns regarding the company's ability to generate returns for its shareholders. A decreasing ROE could be a reflection of various factors such as increased expenses, lower revenue growth, or inefficient utilization of assets, all of which may impact the company's overall profitability.
It is important for investors and stakeholders to closely monitor and investigate the reasons behind this declining trend in ROE to assess the company's financial health and performance accurately. Additional analysis of the company's financial statements and other key performance indicators will provide further insights into the underlying factors contributing to the observed decrease in ROE.
See also:
United Parcel Service Inc Return on Equity (ROE) (Quarterly Data)