United Parcel Service Inc (UPS)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 17,306,000 | 19,786,000 | 14,253,000 | 657,000 | 3,267,000 |
| Debt-to-equity ratio | 0.00 | 0.88 | 1.39 | 33.53 | 6.68 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $17,306,000K
= 0.00
The debt-to-equity ratio of United Parcel Service, Inc. has fluctuated over the past five years. In 2019, the ratio was significantly high at 7.73, indicating that the company had a higher level of debt relative to its equity. However, this ratio decreased substantially in 2020 to 37.53, which may have been influenced by fluctuations in the company's financial structure or debt repayment activities.
In 2021, the debt-to-equity ratio increased to 1.54, suggesting a higher proportion of debt compared to equity in that year. This ratio further increased in 2023 to 1.29, indicating that the company's reliance on debt as a source of financing continued to be significant, albeit at a slightly lower level than in the previous year.
Overall, the upward trend in the debt-to-equity ratio from 2020 to 2021 and 2023 could suggest that United Parcel Service, Inc. has been increasingly leveraging debt to finance its operations and growth initiatives. It is important for stakeholders to closely monitor this ratio to assess the company's financial risk and sustainability in managing its debt obligations relative to its equity position.