UPS (United Parcel Service) Gross Margin % : 16.69% (As of Sep. 2024)

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What is United Parcel Service Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. United Parcel Service's Gross Profit for the three months ended in Sep. 2024 was $3,712 Mil. United Parcel Service's Revenue for the three months ended in Sep. 2024 was $22,245 Mil. Therefore, United Parcel Service's Gross Margin % for the quarter that ended in Sep. 2024 was 16.69%.

The historical rank and industry rank for United Parcel Service's Gross Margin % or its related term are showing as below:

UPS' s Gross Margin % Range Over the Past 10 Years
Min: 16.32 Med: 18.92 Max: 21.08
Current: 17.54

During the past 13 years, the highest Gross Margin % of United Parcel Service was 21.08%. The lowest was 16.32%. And the median was 18.92%.

UPS's Gross Margin % is ranked worse than
56.61% of 945 companies
in the Transportation industry
Industry Median: 19.83 vs UPS: 17.54

United Parcel Service had a gross margin of 16.69% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for United Parcel Service was 2.70% per year.

United Parcel Service Gross Margin % Historical Data

The historical data trend for United Parcel Service's Gross Margin % 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 Gross Margin % Chart

United Parcel Service Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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18.51

18.06

20.85

20.94

18.94

United Parcel Service Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															15.43	19.31	16.50	17.43	16.69

Competitive Comparison of United Parcel Service's Gross Margin %

For the Integrated Freight & Logistics subindustry, United Parcel Service's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, United Parcel Service's Gross Margin % distribution charts can be found below:

* The bar in red indicates where United Parcel Service's Gross Margin % falls into.

United Parcel Service Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

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

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	17231	/	90958
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(90958 - 73727)	/	90958
	=	18.94 %

United Parcel Service's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	3712	/	22245
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(22245 - 18533)	/	22245
	=	16.69 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

United Parcel Service (NYSE:UPS) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

United Parcel Service had a gross margin of 16.69% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

United Parcel Service Gross Margin % Related Terms

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United Parcel Service Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » United Parcel Service Inc (NYSE:UPS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

UPS:Mexico 0R08:UK UPAB:Germany UPAB:Germany UPAB:Germany UPS:Chile 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 22 million packages per day to residences and businesses across the globe. UPS' domestic US 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. UPS is currently pursuing "strategic alternatives" for its truck brokerage unit, Coyote, which it acquired in 2015.

Executives

Brothers Norman M. Jr	officer: Sr VP, Gen Counsel & Sec	55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Nando Cesarone	officer: President, UPS International	55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
William R Johnson	director	UNITED PARCEL SERVICE, INC., 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Eva C Boratto	director	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
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