The business behind the dividend
| Measure | UPS | Median | Formula |
|---|---|---|---|
| Return on equity | 34.3% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 19.5% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $4.89bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $4.76bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 8.9% | 15.0% | Operating income ÷ revenue |
| Net margin | 6.3% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.49x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 7.74x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.22x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 6.89x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.52x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 34.3% | 34.6% | 38.8% | 58.4% | 90.4% | 204.4% | 135.9% | 158.6% | 493.5% | 844.9% | 90.4% |
| Return on capital employed | 19.5% | 21.4% | 21.4% | 33.2% | 35.4% | 30.4% | 27.4% | 27.3% | 29.8% | 46.7% | 27.4% |
| Operating margin | 8.9% | 9.3% | 10.0% | 13.0% | 13.2% | 9.1% | 10.5% | 9.8% | 11.3% | 12.5% | 10.0% |
| Net margin | 6.3% | 6.3% | 7.4% | 11.5% | 13.2% | 1.6% | 6.0% | 6.7% | 7.4% | 5.6% | 6.3% |
| Debt to equity | 1.49x | 1.37x | 1.46x | 0.99x | 1.54x | 37.53x | 7.73x | 7.53x | 24.44x | 39.69x | 1.54x |
| Current ratio | 1.22x | 1.17x | 1.10x | 1.22x | 1.42x | 1.19x | 1.11x | 1.15x | 1.22x | 1.18x | 1.18x |
| Cash conversion | 1.52x | 1.75x | 1.53x | 1.22x | 1.16x | 7.79x | 1.95x | 2.65x | 0.30x | 1.89x | 1.53x |
How it compares in industrials
Among the 74 industrials companies here measured on free cash flow, United Parcel Service pays out less than 1 of them. The median for that group is 28.1%, against this company’s 113.3%.
Closest on free cash flow
- Royal Caribbean Cruises (RCL) 66.7%
- Stanley Black & Decker (SWK) 72.8%
- Watsco (WSO) 88.5%
- Genuine Parts (GPC) 134.0%
Same sector and same denominator, so the figures are comparable. All 81 in industrials →