UPS (United Parcel Service) Operating Income : $8,019 Mil (TTM As of Sep. 2024)

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What is United Parcel Service Operating Income?

United Parcel Service's Operating Income for the three months ended in Sep. 2024 was $1,985 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $8,019 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. United Parcel Service's Operating Income for the three months ended in Sep. 2024 was $1,985 Mil. United Parcel Service's Revenue for the three months ended in Sep. 2024 was $22,245 Mil. Therefore, United Parcel Service's Operating Margin % for the quarter that ended in Sep. 2024 was 8.92%.

Good Sign:

United Parcel Service Inc operating margin is expanding. Margin expansion is usually a good sign.

United Parcel Service's 5-Year average Growth Rate for Operating Margin % was 3.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. United Parcel Service's annualized ROC % for the quarter that ended in Sep. 2024 was 11.20%. United Parcel Service's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 20.69%.

United Parcel Service Operating Income Historical Data

The historical data trend for United Parcel Service's Operating Income 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 Operating Income Chart

United Parcel Service Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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7,798.00

7,684.00

12,810.00

13,094.00

9,141.00

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
Operating Income	Get a 7-Day Free Trial															1,343.00	2,477.00	1,613.00	1,944.00	1,985.00

United Parcel Service Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $8,019 Mil.

United Parcel Service (NYSE:UPS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

United Parcel Service's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	7940 * ( 1 - 19.42% )	/	( (57073	+	57143)	/ 2 )
=	6398.052	/	57108
=	11.20 %

where

	Invested Capital		(Q: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	69418	-	8607	-	( 6532	-	max(0, 15085	-	18823	+	6532	))
=	57073

	Invested Capital		(Q: Sep. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	68263	-	8937	-	( 6060	-	max(0, 15081	-	17264	+	6060	))
=	57143

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

United Parcel Service's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2024		Q: Sep. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	8560	/	( ( (41217 + max(-103, 0))	+	(41518 + max(-1572, 0)) )	/	2 )
=	8560	/	( ( 41217	+	41518 )	/	2 )
=	8560	/	41367.5
=	20.69 %

where Working Capital is:

	Working Capital		(Q: Jun. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(9048	+	0	+	3243)	-	(8607	+	0	+	3787)
=	-103

	Working Capital		(Q: Sep. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(9195	+	0	+	2009)	-	(8937	+	0	+	3839)
=	-1572

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

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

Operating Margin %	=	Operating Income (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	1985	/	22245
	=	8.92 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

United Parcel Service Operating Income 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 » Operating Income

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