United Parcel Service Inc (UPS)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total stockholders’ equity | US$ in thousands | 17,306,000 | 19,168,000 | 20,019,000 | 20,038,000 | 19,786,000 | 16,968,000 | 16,289,000 | 15,416,000 | 14,253,000 | 12,041,000 | 10,805,000 | 7,147,000 | 657,000 | 5,592,000 | 4,363,000 | 3,299,000 | 3,267,000 | 5,558,000 | 4,405,000 | 3,467,000 |
| Financial leverage ratio | 4.09 | 3.67 | 3.51 | 3.60 | 3.59 | 4.10 | 4.30 | 4.55 | 4.87 | 5.46 | 6.00 | 8.86 | 94.99 | 11.16 | 14.22 | 18.46 | 17.71 | 9.59 | 11.98 | 15.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $70,857,000K ÷ $17,306,000K
= 4.09
The financial leverage ratio of United Parcel Service, Inc. has been fluctuating over the past eight quarters. The ratio ranged from a low of 3.51 in Q2 2023 to a high of 4.55 in Q1 2022. This indicates that the company has been employing varying levels of debt to finance its operations during this period. Generally, a higher financial leverage ratio suggests that a company is relying more on debt financing, which can amplify both returns and risks.
In the most recent quarter, Q4 2023, the financial leverage ratio increased to 4.09 from 3.67 in Q3 2023. This indicates that the company may have taken on additional debt relative to its equity, which could potentially increase its financial risk. It would be prudent for stakeholders to monitor how the company manages its debt levels in relation to its equity, as changes in the financial leverage ratio can impact the company's overall financial health and stability.
See also:
United Parcel Service Inc Financial Leverage (Quarterly Data)