United Parcel Service Inc (UPS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 70,070,000 | 70,857,000 | 71,124,000 | 69,405,000 | 62,492,000 |
| Total stockholders’ equity | US$ in thousands | 16,718,000 | 17,306,000 | 19,786,000 | 14,253,000 | 741,000 |
| Financial leverage ratio | 4.19 | 4.09 | 3.59 | 4.87 | 84.33 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $70,070,000K ÷ $16,718,000K
= 4.19
The financial leverage ratio of United Parcel Service Inc has shown a significant decline over the years, dropping from 84.33 in December 31, 2020, to 4.87 in December 31, 2021, and further decreasing to 3.59 in December 31, 2022. The ratio slightly increased to 4.09 in December 31, 2023, and settled at 4.19 in December 31, 2024. This trend indicates that the company has been reducing its reliance on debt to finance its operations and investments, potentially improving its financial stability and reducing the risk associated with high leverage levels.