United Parcel Service Inc (UPS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,441,000 | 8,771,000 | 8,134,000 | 8,988,000 | 9,795,000 | 10,002,000 | 11,945,000 | 12,834,000 | 13,817,000 | 13,828,000 | 13,637,000 | 13,338,000 | 12,954,000 | 6,097,000 | 5,576,000 | 4,652,000 | 2,876,000 | 6,773,000 | 6,421,000 | 6,126,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 50.49% | 52.03% | 47.76% | 53.16% | 56.60% | 52.18% | 59.67% | 64.05% | 69.83% | 81.49% | 83.72% | 86.52% | 90.89% | 50.64% | 51.61% | 65.09% | 388.12% | 121.12% | 147.17% | 184.91% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,441,000K ÷ ($—K + $16,718,000K)
= 50.49%
United Parcel Service Inc's return on total capital has shown fluctuations over the analyzed periods. The ratio peaked at 388.12% at the end of December 2020, indicating a high level of efficiency in generating returns from its total capital. However, the ratio decreased significantly by the end of March 2021 to 65.09% and continued to decline through the following quarters.
The company's return on total capital stabilized in the range of 50-90% from March 2021 to December 2022, indicating a moderate level of profitability relative to its capital base. There was a slight downward trend observed during this period.
From March 2023 to December 2024, United Parcel Service Inc's return on total capital ranged between 47.76% and 56.60%. This period showed a relatively stable performance with a slight increase towards the end of the analyzed period in December 2024.
Overall, United Parcel Service Inc's return on total capital demonstrates some volatility, but the company has maintained a reasonable level of efficiency in utilizing its total capital to generate returns throughout the analyzed periods.