United Parcel Service Inc (UPS)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.19 | 4.05 | 4.08 | 4.00 | 4.09 | 3.67 | 3.51 | 3.60 | 3.59 | 4.10 | 4.30 | 4.55 | 4.87 | 5.46 | 6.00 | 8.86 | 84.33 | 11.16 | 14.22 | 18.38 |
United Parcel Service Inc has consistently maintained a strong solvency position as indicated by its low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, all of which have remained at 0.00 from March 2020 to December 2024. This signifies that the company has little to no debt relative to its assets, capital, and equity.
Furthermore, the financial leverage ratio of United Parcel Service Inc has shown a decreasing trend over the same period, starting at 18.38 in March 2020 and decreasing to 4.19 by December 2024. This indicates that the company has been reducing its reliance on debt to finance its operations, leading to a stronger financial position and lower risk of financial distress.
Overall, United Parcel Service Inc's solvency ratios demonstrate a prudent and conservative approach to managing its capital structure, with a focus on maintaining a healthy balance between debt and equity to support its long-term financial stability and growth.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.75 | 10.39 | 10.00 | 11.35 | 12.48 | 13.16 | 16.19 | 17.87 | 19.63 | 19.90 | 19.62 | 19.30 | 18.67 | 8.76 | 8.02 | 6.54 | 4.10 | 9.79 | 9.51 | 9.41 |
The interest coverage ratio for United Parcel Service Inc demonstrates the company's ability to meet its interest obligations through its operating income. From March 31, 2020, to December 31, 2020, the ratio hovered around 9 to 4 times, indicating a solid ability to cover interest costs. However, there was a significant drop in the ratio to 4.10 by the end of 2020, which might have raised concerns about the company's ability to cover its interest expenses adequately.
Subsequently, there was an improvement in the interest coverage ratio, reaching a peak of 19.90 by September 30, 2022, and maintaining a relatively strong position above 10 until the end of 2024. This significant improvement reflects a healthier financial position and increased operating income relative to interest expenses during this period.
However, there was a slight decline in the ratio in the following quarters, dropping to 9.75 by December 31, 2024. This decrease may warrant further monitoring to ensure that United Parcel Service Inc can continue to comfortably meet its interest obligations in the future. Overall, the fluctuation in the interest coverage ratio over the observed period indicates varying levels of financial risk and operational efficiency within the company.