United Parcel ServiceUPS +2.99%76 Current Ratio is 1.21 as of Mar. 2026, which is 1% below its 10-year median of 1.22. GuruFocus rates UPS with a GF Score™ of 76/100 and a GF Value™ of $128.02 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,010 Transportation companies, United Parcel Service ranks worse than 61.98% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. United Parcel Service's current ratio for the quarter that ended in Mar. 2026 was 1.21.
United Parcel Service has a current ratio of 1.21. It generally indicates good short-term financial strength.
The historical rank and industry rank for United Parcel Service's Current Ratio or its related term are showing as below:
UPS'
s Current Ratio Range Over the Past 10 Years
Min: 1.01 Med: 1.22 Max: 1.52
Current: 1.21
During the past 13 years, United Parcel Service's highest Current Ratio was 1.52. The lowest was 1.01. And the median was 1.22.
UPS's Current Ratio is ranked worse than 61.98% of 1010
companies
in the Transportation industry
Industry Median: 1.47
vs UPS: 1.21
United Parcel Service (NYSE:UPS) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
United Parcel Service Current Ratio Related Terms
United Parcel Service Current Ratio Historical Data
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The historical data trend for United Parcel Service's Current Ratio 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.
For the Integrated Freight & Logistics subindustry, United Parcel Service's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio vs Transportation Industry
For the Transportation industry and Industrials sector, United Parcel Service's Current Ratio distribution charts can be found below:
* The bar in red indicates where United Parcel Service's Current Ratio falls into.
* 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 Current Ratio of 1.21 as of Mar. 2026. This is near median its historical median of 1.22. Over the past decade, United Parcel Service's Current Ratio has ranged from 1.01 to 1.52. According to the industry distribution chart, United Parcel Service ranks #626 out of 1010 companies in the Transportation industry, placing it in the top 62%.
Is United Parcel Service's Current Ratio too high?
United Parcel Service's current Current Ratio of 1.21 is near median its 10-year median of 1.22. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 1.52. The Transportation industry median Current Ratio is 1.47. United Parcel Service's value of 1.21 is 17.7% below this industry median. Based on the distribution chart, United Parcel Service ranks #626 out of 1010 companies in the Transportation industry, which is below the industry midpoint. 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 Current Ratio compare to FDX and JBHT?
According to the Transportation industry distribution chart, United Parcel Service ranks #626 out of 1010 companies for Current Ratio. This places United Parcel Service in the lower half of its industry. The industry median Current Ratio is 1.47. United Parcel Service's value of 1.21 is 17.7% below this benchmark. Historically, United Parcel Service's own Current Ratio has ranged from 1.01 to 1.52 over the past decade. While the company's 10-year median is 1.22 vs. the industry median of 1.47, United Parcel Service has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Transportation company?
The median Current Ratio among Transportation companies is 1.47, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Parcel Service's current Current Ratio of 1.21 is 17.7% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Transportation industry, the median Current Ratio is 1.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Parcel Service's current Current Ratio is 1.21, which is near median its own 10-year median of 1.22. 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 $128.02, compared to a current price of $109.31 — trading 14.6% below its estimated fair value. The current Current Ratio is 1.21, which is near median its 10-year median of 1.22 and 17.7% below the Transportation industry median of 1.47. United Parcel Service's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For United Parcel Service (UPS), the current Current Ratio is 1.21 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 $128.02.
GuruFocus considers United Parcel Service to be Modestly Undervalued.
Key valuation signals for UPS:
Current Ratio: 1.21 (near median its 10-year median of 1.22)
GF Value™: $128.02 vs. price of $109.31 (14.6% below fair value)
Industry Position: 17.7% below the Transportation median (#626 of 1010)
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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