United Parcel Service Inc (UPS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 17,321,000 | 19,784,000 | 22,031,000 | 21,818,000 |
| Total assets | US$ in thousands | 70,857,000 | 71,124,000 | 69,405,000 | 62,408,000 | 57,857,000 |
| Debt-to-assets ratio | 0.00 | 0.24 | 0.29 | 0.35 | 0.38 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $70,857,000K
= 0.00
The debt-to-assets ratio of United Parcel Service, Inc. has shown a fluctuating trend over the past five years. The ratio decreased from 0.44 in 2019 to 0.40 in 2020, indicating a reduction in the proportion of debt relative to the company's total assets. However, starting from 2020, the ratio increased to 0.32 in 2021 and then slightly rose again to 0.28 in 2022 before reaching 0.31 in 2023.
The decrease in the debt-to-assets ratio from 2020 to 2021 suggests that the company may have taken steps to reduce its debt levels or grow its asset base. However, the subsequent increase in the ratio in 2022 and 2023 could indicate a reversal of this trend, with either an increase in debt or a decrease in total assets relative to the level of debt.
Overall, the debt-to-assets ratio of United Parcel Service, Inc. has shown some variability in recent years, reflecting changes in the company's capital structure and financial leverage. Further analysis of the company's financial performance and strategic decisions would be necessary to fully understand the factors driving these fluctuations in the debt-to-assets ratio.