Analysis of Reportable Segments
United Parcel Service Inc. operates in 3 segments: U.S. Domestic Package; International Package; and Supply Chain Solutions.
Segment Profit Margin
United Parcel Service Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 8.47% | 10.90% | 10.67% | 7.27% | 8.96% |
| International Package | 18.12% | 21.96% | 23.78% | 21.55% | 18.68% |
| Supply Chain Solutions | 6.33% | 10.78% | 9.91% | 2.35% | 7.30% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | U.S. Domestic Package | U.S. Domestic Package segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| International Package | International Package segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. | |
| Supply Chain Solutions | Supply Chain Solutions segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Profit Margin: U.S. Domestic Package
United Parcel Service Inc.; U.S. Domestic Package; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 5,076) | 6,997) | 6,436) | 3,891) | 4,164) |
| Revenue | 59,958) | 64,209) | 60,317) | 53,499) | 46,493) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 8.47% | 10.90% | 10.67% | 7.27% | 8.96% |
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
Segment profit margin = 100 × Operating profit ÷ Revenue
= 100 × 5,076 ÷ 59,958 = 8.47%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | U.S. Domestic Package | U.S. Domestic Package segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Profit Margin: International Package
United Parcel Service Inc.; International Package; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 3,231) | 4,326) | 4,646) | 3,436) | 2,657) |
| Revenue | 17,831) | 19,698) | 19,541) | 15,945) | 14,220) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 18.12% | 21.96% | 23.78% | 21.55% | 18.68% |
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
Segment profit margin = 100 × Operating profit ÷ Revenue
= 100 × 3,231 ÷ 17,831 = 18.12%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | International Package | International Package segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Supply Chain Solutions
United Parcel Service Inc.; Supply Chain Solutions; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 834) | 1,771) | 1,728) | 357) | 977) |
| Revenue | 13,169) | 16,431) | 17,429) | 15,184) | 13,381) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 6.33% | 10.78% | 9.91% | 2.35% | 7.30% |
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
Segment profit margin = 100 × Operating profit ÷ Revenue
= 100 × 834 ÷ 13,169 = 6.33%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Supply Chain Solutions | Supply Chain Solutions segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Return on Assets (Segment ROA)
United Parcel Service Inc., ROA by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 13.23% | 18.27% | 18.00% | 11.10% | 12.70% |
| International Package | 18.37% | 24.48% | 26.97% | 21.86% | 18.92% |
| Supply Chain Solutions | 7.42% | 17.02% | 18.08% | 3.95% | 10.80% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | U.S. Domestic Package | U.S. Domestic Package segment ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| International Package | International Package segment ROA deteriorated from 2021 to 2022 and from 2022 to 2023. | |
| Supply Chain Solutions | Supply Chain Solutions segment ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: U.S. Domestic Package
United Parcel Service Inc.; U.S. Domestic Package; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 5,076) | 6,997) | 6,436) | 3,891) | 4,164) |
| Assets | 38,368) | 38,303) | 35,746) | 35,067) | 32,795) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 13.23% | 18.27% | 18.00% | 11.10% | 12.70% |
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
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 5,076 ÷ 38,368 = 13.23%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | U.S. Domestic Package | U.S. Domestic Package segment ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment ROA: International Package
United Parcel Service Inc.; International Package; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 3,231) | 4,326) | 4,646) | 3,436) | 2,657) |
| Assets | 17,587) | 17,670) | 17,225) | 15,717) | 14,044) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 18.37% | 24.48% | 26.97% | 21.86% | 18.92% |
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
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 3,231 ÷ 17,587 = 18.37%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | International Package | International Package segment ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: Supply Chain Solutions
United Parcel Service Inc.; Supply Chain Solutions; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 834) | 1,771) | 1,728) | 357) | 977) |
| Assets | 11,245) | 10,407) | 9,556) | 9,041) | 9,045) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 7.42% | 17.02% | 18.08% | 3.95% | 10.80% |
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
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 834 ÷ 11,245 = 7.42%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Supply Chain Solutions | Supply Chain Solutions segment ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover
United Parcel Service Inc., asset turnover by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 1.56 | 1.68 | 1.69 | 1.53 | 1.42 |
| International Package | 1.01 | 1.11 | 1.13 | 1.01 | 1.01 |
| Supply Chain Solutions | 1.17 | 1.58 | 1.82 | 1.68 | 1.48 |
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).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | U.S. Domestic Package | U.S. Domestic Package segment asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| International Package | International Package segment asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. | |
| Supply Chain Solutions | Supply Chain Solutions segment asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover: U.S. Domestic Package
United Parcel Service Inc.; U.S. Domestic Package; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 59,958) | 64,209) | 60,317) | 53,499) | 46,493) |
| Assets | 38,368) | 38,303) | 35,746) | 35,067) | 32,795) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.56 | 1.68 | 1.69 | 1.53 | 1.42 |
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
Segment asset turnover = Revenue ÷ Assets
= 59,958 ÷ 38,368 = 1.56
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | U.S. Domestic Package | U.S. Domestic Package segment asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover: International Package
United Parcel Service Inc.; International Package; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 17,831) | 19,698) | 19,541) | 15,945) | 14,220) |
| Assets | 17,587) | 17,670) | 17,225) | 15,717) | 14,044) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.01 | 1.11 | 1.13 | 1.01 | 1.01 |
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
Segment asset turnover = Revenue ÷ Assets
= 17,831 ÷ 17,587 = 1.01
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | International Package | International Package segment asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover: Supply Chain Solutions
United Parcel Service Inc.; Supply Chain Solutions; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 13,169) | 16,431) | 17,429) | 15,184) | 13,381) |
| Assets | 11,245) | 10,407) | 9,556) | 9,041) | 9,045) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.17 | 1.58 | 1.82 | 1.68 | 1.48 |
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
Segment asset turnover = Revenue ÷ Assets
= 13,169 ÷ 11,245 = 1.17
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Supply Chain Solutions | Supply Chain Solutions segment asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Revenue
United Parcel Service Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 59,958) | 64,209) | 60,317) | 53,499) | 46,493) |
| International Package | 17,831) | 19,698) | 19,541) | 15,945) | 14,220) |
| Supply Chain Solutions | 13,169) | 16,431) | 17,429) | 15,184) | 13,381) |
| Consolidated | 90,958) | 100,338) | 97,287) | 84,628) | 74,094) |
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).
Operating profit
United Parcel Service Inc., operating profit by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 5,076) | 6,997) | 6,436) | 3,891) | 4,164) |
| International Package | 3,231) | 4,326) | 4,646) | 3,436) | 2,657) |
| Supply Chain Solutions | 834) | 1,771) | 1,728) | 357) | 977) |
| Consolidated | 9,141) | 13,094) | 12,810) | 7,684) | 7,798) |
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).
Assets
United Parcel Service Inc., assets by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| U.S. Domestic Package | 38,368) | 38,303) | 35,746) | 35,067) | 32,795) |
| International Package | 17,587) | 17,670) | 17,225) | 15,717) | 14,044) |
| Supply Chain Solutions | 11,245) | 10,407) | 9,556) | 9,041) | 9,045) |
| Unallocated | 3,657) | 4,744) | 6,878) | 2,583) | 1,973) |
| Consolidated | 70,857) | 71,124) | 69,405) | 62,408) | 57,857) |
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).