United Parcel Service Inc (UPS)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 19,351,000 | 19,856,000 | 17,321,000 | 17,769,000 | 17,997,000 | 19,740,000 | 19,784,000 | 20,838,000 | 21,027,000 | 21,916,000 | 22,031,000 | 23,336,000 | 23,199,000 | 24,196,000 | 21,818,000 | 21,740,000 | 20,427,000 | 20,377,000 |
| Total assets | US$ in thousands | 70,857,000 | 70,281,000 | 70,347,000 | 72,189,000 | 71,124,000 | 69,544,000 | 70,089,000 | 70,113,000 | 69,405,000 | 65,739,000 | 64,869,000 | 63,312,000 | 62,408,000 | 62,406,000 | 62,057,000 | 60,895,000 | 57,857,000 | 53,282,000 | 52,787,000 | 52,061,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.28 | 0.28 | 0.24 | 0.26 | 0.26 | 0.28 | 0.29 | 0.32 | 0.32 | 0.35 | 0.35 | 0.37 | 0.37 | 0.40 | 0.38 | 0.41 | 0.39 | 0.39 |
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 relative stability over the past eight quarters, fluctuating in a narrow range between 0.28 and 0.31. This indicates that, on average, approximately 30% of the company's total assets are financed by debt. The consistency in this ratio suggests that UPS has maintained a prudent balance between debt and assets in its capital structure, avoiding any significant increase in leverage.
A ratio of around 0.30 is generally considered healthy as it indicates that a substantial portion of the company's assets are funded through equity, reducing the financial risk associated with high leverage. UPS's ability to keep its debt-to-assets ratio steady implies a disciplined approach to managing its capital structure, ensuring a sustainable level of debt relative to the value of its assets. Investors and creditors may view this stability favorably as it signifies a lower risk of financial distress and indicates sound financial management by the company.