Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

United Parcel Service Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. federal 1,093 1,012 2,006 1,388 839
U.S. state and local 172 195 273 194 100
Non-U.S. 410 459 467 478 420
Current 1,675 1,666 2,746 2,060 1,359
U.S. federal 38 150 296 1,311 (725)
U.S. state and local (30) 20 136 273 (159)
Non-U.S. (23) 29 99 61 26
Deferred (15) 199 531 1,645 (858)
Income tax expense 1,660 1,865 3,277 3,705 501

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
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. United Parcel Service Inc. current decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. United Parcel Service Inc. deferred decreased from 2022 to 2023 and from 2023 to 2024.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. United Parcel Service Inc. income tax expense decreased from 2022 to 2023 and from 2023 to 2024.

Effective Income Tax Rate (EITR)

United Parcel Service Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Statutory U.S. federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
U.S. state and local income taxes, net of federal benefit 1.80% 1.90% 2.00% 2.20% -2.60%
Non-U.S. tax rate differential 0.00% -0.60% 0.10% 0.00% 1.60%
FDII and GILTI, net -1.20% -0.90% -0.70% 0.00% 0.00%
U.S. federal tax credits -0.80% -0.70% -0.50% -0.40% -3.60%
Goodwill and other asset impairments 0.00% 0.10% 0.00% 0.00% 5.10%
Net uncertain tax positions 0.20% -0.50% 0.40% 0.60% 3.60%
Other 1.30% 1.50% -0.20% -1.10% 2.10%
Effective income tax rate 22.30% 21.80% 22.10% 22.30% 27.20%

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
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. United Parcel Service Inc. effective income tax rate decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Components of Deferred Tax Assets and Liabilities

United Parcel Service Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Pension and postretirement benefits 1,474 1,304 637 1,620 3,994
Loss and credit carryforwards 308 232 242 342 325
Insurance reserves 646 626 603 587 535
Accrued employee compensation 352 354 304 453 583
Operating lease liabilities 1,021 1,073 948 874 736
Other 367 480 646 537 540
Deferred tax assets 4,168 4,069 3,380 4,413 6,713
Deferred tax assets valuation allowance (182) (119) (123) (122) (88)
Deferred tax asset, net of valuation allowance 3,986 3,950 3,257 4,291 6,625
Fixed assets and capitalized software (5,914) (5,974) (5,819) (5,808) (5,355)
Operating lease right-of-use assets (943) (1,017) (893) (839) (730)
Other (612) (605) (708) (593) (501)
Deferred tax liabilities (7,469) (7,596) (7,420) (7,240) (6,586)
Net deferred tax asset (liability) (3,483) (3,646) (4,163) (2,949) 39

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
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. United Parcel Service Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax asset, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. United Parcel Service Inc. deferred tax asset, net of valuation allowance increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. United Parcel Service Inc. net deferred tax asset (liability) increased from 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

United Parcel Service Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax assets 112 126 139 176 527
Deferred tax liabilities 3,595 3,772 4,302 3,125 488

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
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. United Parcel Service Inc. deferred tax assets decreased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. United Parcel Service Inc. deferred tax liabilities decreased from 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 112 126 139 176 527
Total assets (adjusted) 69,958 70,731 70,985 69,229 61,881
Adjustment to Total Liabilities
Total liabilities (as reported) 53,327 53,543 51,321 55,136 61,739
Less: Noncurrent deferred tax liabilities, net 3,595 3,772 4,302 3,125 488
Total liabilities (adjusted) 49,732 49,771 47,019 52,011 61,251
Adjustment to Equity For Controlling Interests
Equity for controlling interests (as reported) 16,718 17,306 19,786 14,253 657
Less: Net deferred tax assets (liabilities) (3,483) (3,646) (4,163) (2,949) 39
Equity for controlling interests (adjusted) 20,201 20,952 23,949 17,202 618
Adjustment to Net Income
Net income (as reported) 5,782 6,708 11,548 12,890 1,343
Add: Deferred income tax expense (benefit) (15) 199 531 1,645 (858)
Net income (adjusted) 5,767 6,907 12,079 14,535 485

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 Deferred Taxes (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 6.33% 7.59% 12.04% 14.94% 0.57%
Total Asset Turnover
Reported total asset turnover 1.30 1.28 1.41 1.40 1.36
Adjusted total asset turnover 1.30 1.29 1.41 1.41 1.37
Financial Leverage
Reported financial leverage 4.19 4.09 3.59 4.87 94.99
Adjusted financial leverage 3.46 3.38 2.96 4.02 100.13
Return on Equity (ROE)
Reported ROE 34.59% 38.76% 58.36% 90.44% 204.41%
Adjusted ROE 28.55% 32.97% 50.44% 84.50% 78.48%
Return on Assets (ROA)
Reported ROA 8.25% 9.47% 16.24% 18.57% 2.15%
Adjusted ROA 8.24% 9.77% 17.02% 21.00% 0.78%

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 total 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 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 5,767 6,907 12,079 14,535 485
Revenue 91,070 90,958 100,338 97,287 84,628
Profitability Ratio
Adjusted net profit margin2 6.33% 7.59% 12.04% 14.94% 0.57%

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 × 5,767 ÷ 91,070 = 6.33%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue 91,070 90,958 100,338 97,287 84,628
Adjusted total assets 69,958 70,731 70,985 69,229 61,881
Activity Ratio
Adjusted total asset turnover2 1.30 1.29 1.41 1.41 1.37

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 ÷ 69,958 = 1.30

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 69,958 70,731 70,985 69,229 61,881
Adjusted equity for controlling interests 20,201 20,952 23,949 17,202 618
Solvency Ratio
Adjusted financial leverage2 3.46 3.38 2.96 4.02 100.13

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
= 69,958 ÷ 20,201 = 3.46

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 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 5,767 6,907 12,079 14,535 485
Adjusted equity for controlling interests 20,201 20,952 23,949 17,202 618
Profitability Ratio
Adjusted ROE2 28.55% 32.97% 50.44% 84.50% 78.48%

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 × 5,767 ÷ 20,201 = 28.55%

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 5,767 6,907 12,079 14,535 485
Adjusted total assets 69,958 70,731 70,985 69,229 61,881
Profitability Ratio
Adjusted ROA2 8.24% 9.77% 17.02% 21.00% 0.78%

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 × 5,767 ÷ 69,958 = 8.24%

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.