The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. United Parcel Service's quick ratio for the quarter that ended in Jun. 2022 was 1.47.
United Parcel Service has a quick ratio of 1.47. It generally indicates good short-term financial strength.
The historical rank and industry rank for United Parcel Service's Quick Ratio or its related term are showing as below:
UPS'
s Quick Ratio Range Over the Past 10 Years
Min: 1 Med: 1.44 Max: 2.43
Current: 1.47
During the past 13 years, United Parcel Service's highest Quick Ratio was 2.43. The lowest was 1.00. And the median was 1.44.
UPS's Quick Ratio is ranked better than 62.96% of 926
companies
in the Transportation industry
Industry Median: 1.23
vs UPS: 1.47
United Parcel Service Quick Ratio Historical Data
The historical data trend for United Parcel Service's Quick 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.
* Premium members only.
United Parcel Service Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Quick Ratio
1.19
1.12
1.08
1.15
1.38
United Parcel Service Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Quick Ratio
1.39
1.48
1.38
1.52
1.47
Competitive Comparison
For the Integrated Freight & Logistics subindustry, United Parcel Service's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio Distribution
For the Transportation industry and Industrials sector, United Parcel Service's Quick Ratio distribution charts can be found below:
* The bar in red indicates where United Parcel Service's Quick Ratio falls into.
United Parcel Service Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
United Parcel Service's Quick Ratio for the fiscal year that ended in Dec. 2021 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 (NYSE:UPS) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
United Parcel Service Quick Ratio Related Terms
Thank you for viewing the detailed overview of United Parcel Service's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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 62% of total revenue while international package makes up 20%. Air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remainder.
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