United Parcel Service Inc (UPS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.19 | 4.09 | 3.59 | 4.87 | 84.33 |
United Parcel Service Inc demonstrates strong solvency as indicated by its consistently low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 across all five years from 2020 to 2024. This suggests that the company is utilizing minimal debt relative to its assets, capital, and equity, reflecting a conservative approach to leverage.
Additionally, the financial leverage ratio, which measures the proportion of a company's assets that are financed with debt, shows a downward trend from 84.33 in 2020 to 4.19 in 2024. Despite this decrease, the ratio remains at a reasonable level, indicating that United Parcel Service Inc has been effectively managing its debt levels to support its operations and growth without becoming overly leveraged.
Overall, the solvency ratios suggest that United Parcel Service Inc maintains a healthy financial position with a conservative debt structure, which enhances its ability to weather financial challenges and capitalize on future opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.59 | 11.91 | 19.63 | 18.54 | 10.94 |
The interest coverage ratio for United Parcel Service Inc has shown a generally positive trend over the past five years, starting at 10.94 in December 31, 2020, increasing to 18.54 in December 31, 2021, and further improving to 19.63 by December 31, 2022. However, there was a slight decline in the ratio to 11.91 by December 31, 2023, followed by a decrease to 9.59 by December 31, 2024.
Overall, the company has maintained a healthy interest coverage ratio over the years, indicating its ability to cover interest expenses comfortably with its earnings. The significant increase in the ratio from 2020 to 2022 suggests an improvement in the company's earning power compared to its interest obligations. However, the slight declines in the following years may warrant further investigation to understand the reasons behind the fluctuations and assess the company's future ability to meet its interest payments.