Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

United Parcel Service Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 110.25 97.28 112.87 135.69 136.50
Receivables turnover 8.38 8.11 7.97 7.76 7.87
Payables turnover 14.45 14.35 13.36 12.93 13.11
Working capital turnover 31.74 52.36 24.61 13.21 26.45
Average No. Days
Average inventory processing period 3 4 3 3 3
Add: Average receivable collection period 44 45 46 47 46
Operating cycle 47 49 49 50 49
Less: Average payables payment period 25 25 27 28 28
Cash conversion cycle 22 24 22 22 21

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. United Parcel Service Inc. inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. United Parcel Service Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. United Parcel Service Inc. payables turnover ratio increased from 2022 to 2023 and from 2023 to 2024.
Working capital turnover An activity ratio calculated as revenue divided by working capital. United Parcel Service Inc. working capital turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. United Parcel Service Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

United Parcel Service Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenue 91,070 90,958 100,338 97,287 84,628
Inventories 826 935 889 717 620
Short-term Activity Ratio
Inventory turnover1 110.25 97.28 112.87 135.69 136.50
Benchmarks
Inventory Turnover, Competitors2
FedEx Corp. 142.82 149.26 146.80 143.03 121.01
Union Pacific Corp. 31.53 32.46 33.57 35.11 30.62
United Airlines Holdings Inc. 36.30 34.41 40.54 25.06 16.48
Inventory Turnover, Sector
Transportation 75.83 73.23 83.93 81.51 70.20
Inventory Turnover, Industry
Industrials 4.06 4.23 4.28 4.03 3.71

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).

1 2024 Calculation
Inventory turnover = Revenue ÷ Inventories
= 91,070 ÷ 826 = 110.25

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. United Parcel Service Inc. inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Receivables Turnover

United Parcel Service Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenue 91,070 90,958 100,338 97,287 84,628
Accounts receivable, net 10,871 11,216 12,583 12,541 10,750
Short-term Activity Ratio
Receivables turnover1 8.38 8.11 7.97 7.76 7.87
Benchmarks
Receivables Turnover, Competitors2
FedEx Corp. 8.69 8.85 7.88 6.96 6.85
Uber Technologies Inc. 13.19 10.95 11.47 7.16 10.38
Union Pacific Corp. 12.80 11.63 13.15 12.66 12.98
United Airlines Holdings Inc. 26.38 28.30 24.96 14.81 11.86
Receivables Turnover, Sector
Transportation 10.73 10.29 9.56 8.05 8.08
Receivables Turnover, Industry
Industrials 9.05 8.61 8.17 7.76 7.57

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).

1 2024 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net
= 91,070 ÷ 10,871 = 8.38

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. United Parcel Service Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Payables Turnover

United Parcel Service Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenue 91,070 90,958 100,338 97,287 84,628
Accounts payable 6,302 6,340 7,512 7,523 6,455
Short-term Activity Ratio
Payables turnover1 14.45 14.35 13.36 12.93 13.11
Benchmarks
Payables Turnover, Competitors2
FedEx Corp. 27.50 23.43 23.20 21.86 21.17
Uber Technologies Inc. 31.06 28.43 27.00 10.87 21.93
Union Pacific Corp. 28.63 28.18 31.73 28.99 31.92
United Airlines Holdings Inc. 13.61 14.01 13.24 9.62 9.63
Payables Turnover, Sector
Transportation 18.63 17.96 17.23 15.26 15.94
Payables Turnover, Industry
Industrials 8.65 8.07 7.83 7.81 7.49

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).

1 2024 Calculation
Payables turnover = Revenue ÷ Accounts payable
= 91,070 ÷ 6,302 = 14.45

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. United Parcel Service Inc. payables turnover ratio increased from 2022 to 2023 and from 2023 to 2024.

Working Capital Turnover

United Parcel Service Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current assets 19,310 19,413 22,217 24,934 20,216
Less: Current liabilities 16,441 17,676 18,140 17,569 17,016
Working capital 2,869 1,737 4,077 7,365 3,200
 
Revenue 91,070 90,958 100,338 97,287 84,628
Short-term Activity Ratio
Working capital turnover1 31.74 52.36 24.61 13.21 26.45
Benchmarks
Working Capital Turnover, Competitors2
FedEx Corp. 18.07 17.94 15.35 12.13 11.46
Uber Technologies Inc. 57.19 20.23 80.50 3.69
Union Pacific Corp. 476.41
United Airlines Holdings Inc. 681.14 6.98 7.40
Working Capital Turnover, Sector
Transportation 107.59 75.38 32.61 15.90 13.91
Working Capital Turnover, Industry
Industrials 10.82 13.27 10.34 6.90 4.52

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).

1 2024 Calculation
Working capital turnover = Revenue ÷ Working capital
= 91,070 ÷ 2,869 = 31.74

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. United Parcel Service Inc. working capital turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Average Inventory Processing Period

United Parcel Service Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 110.25 97.28 112.87 135.69 136.50
Short-term Activity Ratio (no. days)
Average inventory processing period1 3 4 3 3 3
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
FedEx Corp. 3 2 2 3 3
Union Pacific Corp. 12 11 11 10 12
United Airlines Holdings Inc. 10 11 9 15 22
Average Inventory Processing Period, Sector
Transportation 5 5 4 4 5
Average Inventory Processing Period, Industry
Industrials 90 86 85 91 99

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).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 110.25 = 3

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

United Parcel Service Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 8.38 8.11 7.97 7.76 7.87
Short-term Activity Ratio (no. days)
Average receivable collection period1 44 45 46 47 46
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
FedEx Corp. 42 41 46 52 53
Uber Technologies Inc. 28 33 32 51 35
Union Pacific Corp. 29 31 28 29 28
United Airlines Holdings Inc. 14 13 15 25 31
Average Receivable Collection Period, Sector
Transportation 34 35 38 45 45
Average Receivable Collection Period, Industry
Industrials 40 42 45 47 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).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.38 = 44

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. United Parcel Service Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024.

Operating Cycle

United Parcel Service Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 3 4 3 3 3
Average receivable collection period 44 45 46 47 46
Short-term Activity Ratio
Operating cycle1 47 49 49 50 49
Benchmarks
Operating Cycle, Competitors2
FedEx Corp. 45 43 48 55 56
Union Pacific Corp. 41 42 39 39 40
United Airlines Holdings Inc. 24 24 24 40 53
Operating Cycle, Sector
Transportation 39 40 42 49 50
Operating Cycle, Industry
Industrials 130 128 130 138 147

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).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 3 + 44 = 47

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

United Parcel Service Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 14.45 14.35 13.36 12.93 13.11
Short-term Activity Ratio (no. days)
Average payables payment period1 25 25 27 28 28
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
FedEx Corp. 13 16 16 17 17
Uber Technologies Inc. 12 13 14 34 17
Union Pacific Corp. 13 13 12 13 11
United Airlines Holdings Inc. 27 26 28 38 38
Average Payables Payment Period, Sector
Transportation 20 20 21 24 23
Average Payables Payment Period, Industry
Industrials 42 45 47 47 49

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).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.45 = 25

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

United Parcel Service Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 3 4 3 3 3
Average receivable collection period 44 45 46 47 46
Average payables payment period 25 25 27 28 28
Short-term Activity Ratio
Cash conversion cycle1 22 24 22 22 21
Benchmarks
Cash Conversion Cycle, Competitors2
FedEx Corp. 32 27 32 38 39
Union Pacific Corp. 28 29 27 26 29
United Airlines Holdings Inc. -3 -2 -4 2 15
Cash Conversion Cycle, Sector
Transportation 19 20 21 25 27
Cash Conversion Cycle, Industry
Industrials 88 83 83 91 98

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).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 3 + 4425 = 22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.