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United Parcel Service (United Parcel Service) Inventory Turnover : 20.18 (As of Mar. 2024)


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What is United Parcel Service Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. United Parcel Service's Cost of Goods Sold for the three months ended in Mar. 2024 was $18,125 Mil. United Parcel Service's Average Total Inventories for the quarter that ended in Mar. 2024 was $898 Mil. United Parcel Service's Inventory Turnover for the quarter that ended in Mar. 2024 was 20.18.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. United Parcel Service's Days Inventory for the three months ended in Mar. 2024 was 4.52.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. United Parcel Service's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.04.


United Parcel Service Inventory Turnover Historical Data

The historical data trend for United Parcel Service's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

United Parcel Service Inventory Turnover Chart

United Parcel Service Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 129.56 122.62 115.19 98.79 82.93

United Parcel Service Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.68 - - - 20.18

United Parcel Service Inventory Turnover Calculation

United Parcel Service's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Inventory Turnover (A: Dec. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2023 ) / ((Total Inventories (A: Dec. 2022 ) + Total Inventories (A: Dec. 2023 )) / count )
=73727 / ((889 + 0) / 1 )
=73727 / 889
=82.93

United Parcel Service's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

Inventory Turnover (Q: Mar. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2024 ) / ((Total Inventories (Q: Dec. 2023 ) + Total Inventories (Q: Mar. 2024 )) / count )
=18125 / ((0 + 898) / 1 )
=18125 / 898
=20.18

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


United Parcel Service  (NYSE:UPS) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

United Parcel Service's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2024 )/Cost of Goods Sold (Q: Mar. 2024 )*Days in Period
=898/18125*365 / 4
=4.52

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

United Parcel Service's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=898 / 21706
=0.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.


United Parcel Service Inventory Turnover Related Terms

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United Parcel Service (United Parcel Service) Business Description

Address
55 Glenlake Parkway, N.E. Atlanta, Atlanta, GA, USA, 30328
As the world's largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 25 million packages per day to residences and businesses across the globe. UPS' domestic U.S. package operations generate around 64% of total revenue while international package makes up 20%. Air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remainder.
Executives
Nando Cesarone officer: President, UPS International 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Laura J Lane officer: Chief Corp Affairs & Comms Off 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Brian Newman officer: Chief Financial Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Brothers Norman M. Jr officer: Sr VP, Gen Counsel & Sec 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Darrell L Ford officer: Chief Human Resources Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kathleen M. Gutmann officer: Senior Vice President 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kevin M Warren officer: Chief Marketing Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Bala Subramanian officer: Chief Digital & Tech Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Philippe R Gilbert officer: Pres, Supply Chain Solutions 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Juan R. Perez officer: Senior Vice President 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Scott A. Price officer: Chief Transformation Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Russell Stokes director ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Wayne M. Hewett director 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154
Charlene A Thomas officer: Chief Human Resources Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kathleen E Johnson director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328

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