UPS

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 7.37% in 2017 to 13.25% in 2021.
  • The average EBIT Margin for the period under analysis was 10.86%, with 2020 and 2021 performing the worst and best, respectively.
  • In the current year, UPS was able to cover its interest liabilities 18.46 times in the current year- compared to 2017 when it was 16.62 times.
  • The Asset turnover stood at 1.40 times in 2021 from 1.46 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of UPS has increased year on year. The revenue increased by 7.92% between 2017 and 2018 and a further 3.11% increase was recorded between 2018 and 2019. There also occurred a/an increase of 14.96% between 2020 and 2021 (the current period). 
  • UPS’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks strong, as current ratio increased from 1.19:1 to 1.42:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.

Capital Structure

  • UPS is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be high as it stood at 386% in the current year.

Source: UPS Annual Report

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