United Parcel Service's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 45.53.
United Parcel Service's Days Inventory for the
three
months ended in Mar. 2026 was 3.78.
United Parcel Service's Days Payable for the
three
months ended in Mar. 2026 was 32.08.
Therefore, United Parcel Service's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 17.23.
United Parcel Service (NYSE:UPS) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
United Parcel Service Cash Conversion Cycle Related Terms
United Parcel Service Cash Conversion Cycle Historical Data
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The historical data trend for United Parcel Service's Cash Conversion Cycle 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.
UPS vs FDX, JBHT, FDXFw: Cash Conversion Cycle Comparison
For the Integrated Freight & Logistics subindustry, United Parcel Service's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
United Parcel Service Cash Conversion Cycle vs Transportation Industry
For the Transportation industry and Industrials sector, United Parcel Service's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where United Parcel Service's Cash Conversion Cycle falls into.
United Parcel Service Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
United Parcel Service's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (UPS) has a Cash Conversion Cycle of 17.23 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on United Parcel Service and its competitors.
Is United Parcel Service's Cash Conversion Cycle too high?
United Parcel Service's current Cash Conversion Cycle is 17.23. The Transportation industry median Cash Conversion Cycle is 20.26. United Parcel Service's value of 17.23 is 14.9% below this industry median. Overall, United Parcel Service has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does United Parcel Service's Cash Conversion Cycle compare to FDX and JBHT?
United Parcel Service's Cash Conversion Cycle of 17.23 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 20.26. United Parcel Service's value of 17.23 is 14.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Transportation company?
The median Cash Conversion Cycle among Transportation companies is 20.26, based on 1,008 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Parcel Service's current Cash Conversion Cycle of 17.23 is 14.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on United Parcel Service and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 20.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Parcel Service's current Cash Conversion Cycle is 17.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Parcel Service stock overvalued right now?
Based on GuruFocus' analysis, United Parcel Service (UPS) is currently considered Modestly Undervalued. The stock's GF Value™ is $128.03, compared to a current price of $109.31 — trading 14.6% below its estimated fair value. The current Cash Conversion Cycle is 17.23 and 14.9% below the Transportation industry median of 20.26. United Parcel Service's overall GF Score™ is 76/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For United Parcel Service (UPS), the current Cash Conversion Cycle is 17.23 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is United Parcel Service (UPS) Overvalued in 2026?
Based on GuruFocus' analysis, United Parcel Service stock appears to be undervalued.
The current stock price of $109.31 is trading 14.6% below its estimated GF Value™ of $128.03.
GuruFocus considers United Parcel Service to be Modestly Undervalued.
Key valuation signals for UPS:
Cash Conversion Cycle: 17.23
GF Value™: $128.03 vs. price of $109.31 (14.6% below fair value)
Industry Position: 14.9% below the Transportation median
No single metric tells the full story. See the UPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 22 million packages per day to residences and businesses across the globe. UPS' domestic US package operations generate around 65% of total revenue, while international package makes up 20%. Air and ocean freight forwarding and contract logistics make up the remainder.
76GF Score
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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