Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

United Parcel Service Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Goodwill 4,300 4,872 4,223 3,692 3,367
Capitalized software 6,088 5,839 5,186 4,910 4,531
Licenses 30 30 55 58 95
Franchise rights 348 291 226 119 165
Customer relationships 677 1,115 872 733 729
Trade name 109 172 125 67
Trademarks, patents, and other 369 320 183 158 18
Amortizable intangible assets, gross carrying amount 7,621 7,767 6,647 6,045 5,538
Accumulated amortization (4,561) (4,555) (4,055) (3,763) (3,469)
Amortizable intangible assets, net carrying value 3,060 3,212 2,592 2,282 2,069
Trade name 89 200 200 200
Licenses 4 4 4 4 5
Indefinite lived intangible assets 4 93 204 204 205
Intangible assets 3,064 3,305 2,796 2,486 2,274
Goodwill and intangible assets 7,364 8,177 7,019 6,178 5,641

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. United Parcel Service Inc. goodwill increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. United Parcel Service Inc. intangible assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. United Parcel Service Inc. goodwill and intangible assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Adjustments to Financial Statements: Removal of Goodwill

United Parcel Service Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 70,070 70,857 71,124 69,405 62,408
Less: Goodwill 4,300 4,872 4,223 3,692 3,367
Total assets (adjusted) 65,770 65,985 66,901 65,713 59,041
Adjustment to Equity For Controlling Interests
Equity for controlling interests (as reported) 16,718 17,306 19,786 14,253 657
Less: Goodwill 4,300 4,872 4,223 3,692 3,367
Equity for controlling interests (adjusted) 12,418 12,434 15,563 10,561 (2,710)
Adjustment to Net Income
Net income (as reported) 5,782 6,708 11,548 12,890 1,343
Add: Non-cash goodwill impairment charges 125 494
Net income (adjusted) 5,782 6,833 11,548 12,890 1,837

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


United Parcel Service Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

United Parcel Service Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 6.35% 7.37% 11.51% 13.25% 1.59%
Adjusted net profit margin 6.35% 7.51% 11.51% 13.25% 2.17%
Total Asset Turnover
Reported total asset turnover 1.30 1.28 1.41 1.40 1.36
Adjusted total asset turnover 1.38 1.38 1.50 1.48 1.43
Financial Leverage
Reported financial leverage 4.19 4.09 3.59 4.87 94.99
Adjusted financial leverage 5.30 5.31 4.30 6.22
Return on Equity (ROE)
Reported ROE 34.59% 38.76% 58.36% 90.44% 204.41%
Adjusted ROE 46.56% 54.95% 74.20% 122.05%
Return on Assets (ROA)
Reported ROA 8.25% 9.47% 16.24% 18.57% 2.15%
Adjusted ROA 8.79% 10.36% 17.26% 19.62% 3.11%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. United Parcel Service Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. United Parcel Service Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
United Parcel Service Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. United Parcel Service Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. United Parcel Service Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

United Parcel Service Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 5,782 6,708 11,548 12,890 1,343
Revenue 91,070 90,958 100,338 97,287 84,628
Profitability Ratio
Net profit margin1 6.35% 7.37% 11.51% 13.25% 1.59%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income 5,782 6,833 11,548 12,890 1,837
Revenue 91,070 90,958 100,338 97,287 84,628
Profitability Ratio
Adjusted net profit margin2 6.35% 7.51% 11.51% 13.25% 2.17%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 5,782 ÷ 91,070 = 6.35%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 5,782 ÷ 91,070 = 6.35%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. United Parcel Service Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenue 91,070 90,958 100,338 97,287 84,628
Total assets 70,070 70,857 71,124 69,405 62,408
Activity Ratio
Total asset turnover1 1.30 1.28 1.41 1.40 1.36
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 91,070 90,958 100,338 97,287 84,628
Adjusted total assets 65,770 65,985 66,901 65,713 59,041
Activity Ratio
Adjusted total asset turnover2 1.38 1.38 1.50 1.48 1.43

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 91,070 ÷ 70,070 = 1.30

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 91,070 ÷ 65,770 = 1.38

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. United Parcel Service Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 70,070 70,857 71,124 69,405 62,408
Equity for controlling interests 16,718 17,306 19,786 14,253 657
Solvency Ratio
Financial leverage1 4.19 4.09 3.59 4.87 94.99
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 65,770 65,985 66,901 65,713 59,041
Adjusted equity for controlling interests 12,418 12,434 15,563 10,561 (2,710)
Solvency Ratio
Adjusted financial leverage2 5.30 5.31 4.30 6.22

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Equity for controlling interests
= 70,070 ÷ 16,718 = 4.19

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity for controlling interests
= 65,770 ÷ 12,418 = 5.30

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
United Parcel Service Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 5,782 6,708 11,548 12,890 1,343
Equity for controlling interests 16,718 17,306 19,786 14,253 657
Profitability Ratio
ROE1 34.59% 38.76% 58.36% 90.44% 204.41%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income 5,782 6,833 11,548 12,890 1,837
Adjusted equity for controlling interests 12,418 12,434 15,563 10,561 (2,710)
Profitability Ratio
Adjusted ROE2 46.56% 54.95% 74.20% 122.05%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net income ÷ Equity for controlling interests
= 100 × 5,782 ÷ 16,718 = 34.59%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted equity for controlling interests
= 100 × 5,782 ÷ 12,418 = 46.56%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. United Parcel Service Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 5,782 6,708 11,548 12,890 1,343
Total assets 70,070 70,857 71,124 69,405 62,408
Profitability Ratio
ROA1 8.25% 9.47% 16.24% 18.57% 2.15%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income 5,782 6,833 11,548 12,890 1,837
Adjusted total assets 65,770 65,985 66,901 65,713 59,041
Profitability Ratio
Adjusted ROA2 8.79% 10.36% 17.26% 19.62% 3.11%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 5,782 ÷ 70,070 = 8.25%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 5,782 ÷ 65,770 = 8.79%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. United Parcel Service Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.