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United Parcel Service (NYSE:UPS) Financial Strength

: 6 (As of Dec. 2022)
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United Parcel Service has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

United Parcel Service did not have earnings to cover the interest expense. United Parcel Service's debt to revenue ratio for the quarter that ended in Dec. 2022 was 0.22. As of today, United Parcel Service's Altman Z-Score is 4.56.


Competitive Comparison

For the Integrated Freight & Logistics subindustry, United Parcel Service's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where United Parcel Service's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.



United Parcel Service Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

United Parcel Service's Interest Expense for the months ended in Dec. 2022 was $-182 Mil. Its Operating Income for the months ended in Dec. 2022 was $-20,643 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $20,559 Mil.

United Parcel Service's Interest Coverage for the quarter that ended in Dec. 2022 is

United Parcel Service did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

United Parcel Service's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2962 + 20559) / 108132
=0.22

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

United Parcel Service has a Z-score of 4.56, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.56 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

United Parcel Service has the Financial Strength Rank of 6.


United Parcel Service Financial Strength Related Terms

Thank you for viewing the detailed overview of United Parcel Service's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


United Parcel Service (NYSE:UPS) Business Description

United Parcel Service logo
Address
55 Glenlake Parkway, N.E. Atlanta, Atlanta, GA, USA, 30328
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.
Executives
Bala Subramanian officer: Chief Digital & Tech Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Darrell L Ford officer: Chief Human Resources Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kathleen E Johnson director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Russell Stokes director 5 NECCO STREET, BOSTON MA 02210
Wayne M. Hewett director 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154
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
Angela Hwang director 235 EAST 42ND STREET, ATTN: CORPORATE SECRETARY, NEW YORK NY 10017
Brian Newman officer: Chief Financial Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Charlene A Thomas officer: Chief Human Resources Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Carol B Tome director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Rudy Markham director 55 GLENLAKE PARKWAY NE, ATLANTA GA 30328
Michael J Burns director POSTFACH STEIZENSTRASSE 4, CH-8152 GLATTBRUGG ZURICH, SWITZERLAND V8 00000
John T Stankey director 208 S. AKARD ST., DALLAS TX 75202
William R Johnson director UNITED PARCEL SERVICE, INC., 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328

United Parcel Service (NYSE:UPS) Headlines

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