Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
United Parcel Service Inc., profitability ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | United Parcel Service Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | United Parcel Service Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | United Parcel Service Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | United Parcel Service Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
United Parcel Service Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating profit | 9,141) | 13,094) | 12,810) | 7,684) | 7,798) | |
| Revenue | 90,958) | 100,338) | 97,287) | 84,628) | 74,094) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 10.05% | 13.05% | 13.17% | 9.08% | 10.52% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 5.45% | 6.68% | 6.98% | 3.49% | 6.41% | |
| Uber Technologies Inc. | 2.98% | -5.75% | -21.97% | -43.66% | — | |
| Union Pacific Corp. | 37.65% | 39.87% | 42.83% | 40.11% | — | |
| United Airlines Holdings Inc. | 7.84% | 5.20% | -4.15% | -41.41% | 9.94% | |
| Operating Profit Margin, Sector | ||||||
| Transportation | 9.61% | 10.07% | 9.44% | 3.36% | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 10.03% | 9.19% | 9.36% | 3.31% | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating profit margin = 100 × Operating profit ÷ Revenue
= 100 × 9,141 ÷ 90,958 = 10.05%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | United Parcel Service Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
United Parcel Service Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,708) | 11,548) | 12,890) | 1,343) | 4,440) | |
| Revenue | 90,958) | 100,338) | 97,287) | 84,628) | 74,094) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 7.37% | 11.51% | 13.25% | 1.59% | 5.99% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 4.41% | 4.09% | 6.23% | 1.86% | 0.77% | |
| Uber Technologies Inc. | 5.06% | -28.68% | -2.84% | -60.76% | — | |
| Union Pacific Corp. | 26.45% | 28.13% | 29.92% | 27.38% | — | |
| United Airlines Holdings Inc. | 4.87% | 1.64% | -7.97% | -46.04% | 6.96% | |
| Net Profit Margin, Sector | ||||||
| Transportation | 7.28% | 4.73% | 9.05% | -2.93% | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 8.41% | 5.16% | 5.96% | 0.25% | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 6,708 ÷ 90,958 = 7.37%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | United Parcel Service Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
United Parcel Service Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,708) | 11,548) | 12,890) | 1,343) | 4,440) | |
| Equity for controlling interests | 17,306) | 19,786) | 14,253) | 657) | 3,267) | |
| Profitability Ratio | ||||||
| ROE1 | 38.76% | 58.36% | 90.44% | 204.41% | 135.90% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| FedEx Corp. | 15.23% | 15.34% | 21.64% | 7.03% | 3.04% | |
| Uber Technologies Inc. | 16.77% | -124.54% | -3.43% | -55.18% | — | |
| Union Pacific Corp. | 43.14% | 57.54% | 46.06% | 31.54% | — | |
| United Airlines Holdings Inc. | 28.08% | 10.69% | -39.05% | -118.61% | 26.09% | |
| ROE, Sector | ||||||
| Transportation | 27.38% | 19.64% | 30.78% | -10.82% | — | |
| ROE, Industry | ||||||
| Industrials | 27.83% | 15.70% | 15.61% | 0.67% | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROE = 100 × Net income ÷ Equity for controlling interests
= 100 × 6,708 ÷ 17,306 = 38.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | United Parcel Service Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
United Parcel Service Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,708) | 11,548) | 12,890) | 1,343) | 4,440) | |
| Total assets | 70,857) | 71,124) | 69,405) | 62,408) | 57,857) | |
| Profitability Ratio | ||||||
| ROA1 | 9.47% | 16.24% | 18.57% | 2.15% | 7.67% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| FedEx Corp. | 4.56% | 4.45% | 6.32% | 1.75% | 0.99% | |
| Uber Technologies Inc. | 4.88% | -28.47% | -1.28% | -20.35% | — | |
| Union Pacific Corp. | 9.50% | 10.69% | 10.27% | 8.57% | — | |
| United Airlines Holdings Inc. | 3.68% | 1.09% | -2.88% | -11.87% | 5.72% | |
| ROA, Sector | ||||||
| Transportation | 6.44% | 4.34% | 6.88% | -2.01% | — | |
| ROA, Industry | ||||||
| Industrials | 5.69% | 3.40% | 3.48% | 0.12% | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 6,708 ÷ 70,857 = 9.47%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | United Parcel Service Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |