Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

United Parcel Service Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 33.61% = 8.30% × 4.05
Jun 30, 2024 30.85% = 7.57% × 4.08
Mar 31, 2024 35.05% = 8.76% × 4.00
Dec 31, 2023 38.76% = 9.47% × 4.09
Sep 30, 2023 44.64% = 12.17% × 3.67
Jun 30, 2023 50.02% = 14.23% × 3.51
Mar 31, 2023 53.80% = 14.93% × 3.60
Dec 31, 2022 58.36% = 16.24% × 3.59
Sep 30, 2022 65.94% = 16.09% × 4.10
Jun 30, 2022 67.12% = 15.60% × 4.30
Mar 31, 2022 69.80% = 15.35% × 4.55
Dec 31, 2021 90.44% = 18.57% × 4.87
Sep 30, 2021 53.57% = 9.81% × 5.46
Jun 30, 2021 56.25% = 9.37% × 6.00
Mar 31, 2021 72.34% = 8.17% × 8.86
Dec 31, 2020 204.41% = 2.15% × 94.99
Sep 30, 2020 81.97% = 7.35% × 11.16
Jun 30, 2020 100.32% = 7.05% × 14.22
Mar 31, 2020 130.16% = 7.05% × 18.46
Dec 31, 2019 135.90% = 7.67% × 17.71
Sep 30, 2019 — = — × 9.59
Jun 30, 2019 — = — × 11.98
Mar 31, 2019 — = — × 15.02

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

United Parcel Service Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 33.61% = 6.25% × 1.33 × 4.05
Jun 30, 2024 30.85% = 5.87% × 1.29 × 4.08
Mar 31, 2024 35.05% = 6.60% × 1.33 × 4.00
Dec 31, 2023 38.76% = 7.37% × 1.28 × 4.09
Sep 30, 2023 44.64% = 9.19% × 1.32 × 3.67
Jun 30, 2023 50.02% = 10.41% × 1.37 × 3.51
Mar 31, 2023 53.80% = 10.90% × 1.37 × 3.60
Dec 31, 2022 58.36% = 11.51% × 1.41 × 3.59
Sep 30, 2022 65.94% = 11.07% × 1.45 × 4.10
Jun 30, 2022 67.12% = 10.92% × 1.43 × 4.30
Mar 31, 2022 69.80% = 10.90% × 1.41 × 4.55
Dec 31, 2021 90.44% = 13.25% × 1.40 × 4.87
Sep 30, 2021 53.57% = 6.83% × 1.44 × 5.46
Jun 30, 2021 56.25% = 6.57% × 1.43 × 6.00
Mar 31, 2021 72.34% = 5.78% × 1.41 × 8.86
Dec 31, 2020 204.41% = 1.59% × 1.36 × 94.99
Sep 30, 2020 81.97% = 5.71% × 1.29 × 11.16
Jun 30, 2020 100.32% = 5.66% × 1.25 × 14.22
Mar 31, 2020 130.16% = 5.73% × 1.23 × 18.46
Dec 31, 2019 135.90% = 5.99% × 1.28 × 17.71
Sep 30, 2019 — = — × — × 9.59
Jun 30, 2019 — = — × — × 11.98
Mar 31, 2019 — = — × — × 15.02

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

United Parcel Service Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 33.61% = 0.77 × 0.90 × 9.07% × 1.33 × 4.05
Jun 30, 2024 30.85% = 0.78 × 0.89 × 8.43% × 1.29 × 4.08
Mar 31, 2024 35.05% = 0.78 × 0.91 × 9.34% × 1.33 × 4.00
Dec 31, 2023 38.76% = 0.78 × 0.92 × 10.29% × 1.28 × 4.09
Sep 30, 2023 44.64% = 0.78 × 0.94 × 12.61% × 1.32 × 3.67
Jun 30, 2023 50.02% = 0.77 × 0.95 × 14.26% × 1.37 × 3.51
Mar 31, 2023 53.80% = 0.77 × 0.95 × 14.84% × 1.37 × 3.60
Dec 31, 2022 58.36% = 0.78 × 0.95 × 15.48% × 1.41 × 3.59
Sep 30, 2022 65.94% = 0.78 × 0.95 × 14.86% × 1.45 × 4.10
Jun 30, 2022 67.12% = 0.78 × 0.95 × 14.72% × 1.43 × 4.30
Mar 31, 2022 69.80% = 0.78 × 0.95 × 14.66% × 1.41 × 4.55
Dec 31, 2021 90.44% = 0.78 × 0.96 × 17.77% × 1.40 × 4.87
Sep 30, 2021 53.57% = 0.77 × 0.92 × 9.58% × 1.44 × 5.46
Jun 30, 2021 56.25% = 0.77 × 0.92 × 9.27% × 1.43 × 6.00
Mar 31, 2021 72.34% = 0.76 × 0.91 × 8.39% × 1.41 × 8.86
Dec 31, 2020 204.41% = 0.73 × 0.72 × 3.01% × 1.36 × 94.99
Sep 30, 2020 81.97% = 0.77 × 0.90 × 8.25% × 1.29 × 11.16
Jun 30, 2020 100.32% = 0.78 × 0.89 × 8.13% × 1.25 × 14.22
Mar 31, 2020 130.16% = 0.79 × 0.89 × 8.15% × 1.23 × 18.46
Dec 31, 2019 135.90% = 0.79 × 0.90 × 8.51% × 1.28 × 17.71
Sep 30, 2019 — = — × — × — × — × 9.59
Jun 30, 2019 — = — × — × — × — × 11.98
Mar 31, 2019 — = — × — × — × — × 15.02

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

United Parcel Service Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 8.30% = 6.25% × 1.33
Jun 30, 2024 7.57% = 5.87% × 1.29
Mar 31, 2024 8.76% = 6.60% × 1.33
Dec 31, 2023 9.47% = 7.37% × 1.28
Sep 30, 2023 12.17% = 9.19% × 1.32
Jun 30, 2023 14.23% = 10.41% × 1.37
Mar 31, 2023 14.93% = 10.90% × 1.37
Dec 31, 2022 16.24% = 11.51% × 1.41
Sep 30, 2022 16.09% = 11.07% × 1.45
Jun 30, 2022 15.60% = 10.92% × 1.43
Mar 31, 2022 15.35% = 10.90% × 1.41
Dec 31, 2021 18.57% = 13.25% × 1.40
Sep 30, 2021 9.81% = 6.83% × 1.44
Jun 30, 2021 9.37% = 6.57% × 1.43
Mar 31, 2021 8.17% = 5.78% × 1.41
Dec 31, 2020 2.15% = 1.59% × 1.36
Sep 30, 2020 7.35% = 5.71% × 1.29
Jun 30, 2020 7.05% = 5.66% × 1.25
Mar 31, 2020 7.05% = 5.73% × 1.23
Dec 31, 2019 7.67% = 5.99% × 1.28
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

United Parcel Service Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2024 8.30% = 0.77 × 0.90 × 9.07% × 1.33
Jun 30, 2024 7.57% = 0.78 × 0.89 × 8.43% × 1.29
Mar 31, 2024 8.76% = 0.78 × 0.91 × 9.34% × 1.33
Dec 31, 2023 9.47% = 0.78 × 0.92 × 10.29% × 1.28
Sep 30, 2023 12.17% = 0.78 × 0.94 × 12.61% × 1.32
Jun 30, 2023 14.23% = 0.77 × 0.95 × 14.26% × 1.37
Mar 31, 2023 14.93% = 0.77 × 0.95 × 14.84% × 1.37
Dec 31, 2022 16.24% = 0.78 × 0.95 × 15.48% × 1.41
Sep 30, 2022 16.09% = 0.78 × 0.95 × 14.86% × 1.45
Jun 30, 2022 15.60% = 0.78 × 0.95 × 14.72% × 1.43
Mar 31, 2022 15.35% = 0.78 × 0.95 × 14.66% × 1.41
Dec 31, 2021 18.57% = 0.78 × 0.96 × 17.77% × 1.40
Sep 30, 2021 9.81% = 0.77 × 0.92 × 9.58% × 1.44
Jun 30, 2021 9.37% = 0.77 × 0.92 × 9.27% × 1.43
Mar 31, 2021 8.17% = 0.76 × 0.91 × 8.39% × 1.41
Dec 31, 2020 2.15% = 0.73 × 0.72 × 3.01% × 1.36
Sep 30, 2020 7.35% = 0.77 × 0.90 × 8.25% × 1.29
Jun 30, 2020 7.05% = 0.78 × 0.89 × 8.13% × 1.25
Mar 31, 2020 7.05% = 0.79 × 0.89 × 8.15% × 1.23
Dec 31, 2019 7.67% = 0.79 × 0.90 × 8.51% × 1.28
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

United Parcel Service Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2024 6.25% = 0.77 × 0.90 × 9.07%
Jun 30, 2024 5.87% = 0.78 × 0.89 × 8.43%
Mar 31, 2024 6.60% = 0.78 × 0.91 × 9.34%
Dec 31, 2023 7.37% = 0.78 × 0.92 × 10.29%
Sep 30, 2023 9.19% = 0.78 × 0.94 × 12.61%
Jun 30, 2023 10.41% = 0.77 × 0.95 × 14.26%
Mar 31, 2023 10.90% = 0.77 × 0.95 × 14.84%
Dec 31, 2022 11.51% = 0.78 × 0.95 × 15.48%
Sep 30, 2022 11.07% = 0.78 × 0.95 × 14.86%
Jun 30, 2022 10.92% = 0.78 × 0.95 × 14.72%
Mar 31, 2022 10.90% = 0.78 × 0.95 × 14.66%
Dec 31, 2021 13.25% = 0.78 × 0.96 × 17.77%
Sep 30, 2021 6.83% = 0.77 × 0.92 × 9.58%
Jun 30, 2021 6.57% = 0.77 × 0.92 × 9.27%
Mar 31, 2021 5.78% = 0.76 × 0.91 × 8.39%
Dec 31, 2020 1.59% = 0.73 × 0.72 × 3.01%
Sep 30, 2020 5.71% = 0.77 × 0.90 × 8.25%
Jun 30, 2020 5.66% = 0.78 × 0.89 × 8.13%
Mar 31, 2020 5.73% = 0.79 × 0.89 × 8.15%
Dec 31, 2019 5.99% = 0.79 × 0.90 × 8.51%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.