United Parcel Service (LTS:0R08) ROCE %

: 16.87% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. United Parcel Service's annualized ROCE % for the quarter that ended in Dec. 2023 was 16.87%.

United Parcel Service ROCE % Historical Data

The historical data trend for United Parcel Service's ROCE % 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.

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United Parcel Service Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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16.09

5.79

35.56

29.63

17.63

United Parcel Service Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															35.47	19.91	20.87	10.66	16.87

United Parcel Service ROCE % Calculation

United Parcel Service's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	9358	/	( ( (71124 - 18140)	+	(70857 - 17676) )	/ 2 )
	=	9358	/	( (52984	+	53181)	/ 2 )
	=	9358	/	53082.5
	=	17.63 %

United Parcel Service's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	9080	/	( ( (70281 - 15817)	+	(70857 - 17676) )	/ 2 )
	=	9080	/	( ( 54464	+	53181 )	/ 2 )
	=	9080	/	53822.5
	=	16.87 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

United Parcel Service (LTS:0R08) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

United Parcel Service ROCE % Related Terms

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United Parcel Service (LTS:0R08) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » United Parcel Service Inc (LTS:0R08) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

UPS:USA UPS:Mexico UPA:Germany UPAB:Germany UPAB:Germany UPAB:Germany UPS:Canada UPSS34:Brazil UPSI:Austria

Address

55 Glenlake Parkway, N.E. Atlanta, Atlanta, GA, USA, 30328

Website

https://www.ups.com

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.

United Parcel Service (LTS:0R08) Headlines

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