Financial Analysis-Ups
Introduction
UPS is the world’s largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions and less-than-truckload transportation services. In 2009, the company delivered an average of 15.1 million packages and documents per day throughout the US and to more than 200 countries and territories. The primary business of the company is the time-definite delivery of packages and documents. Besides that, the company also has extended their capabilities to encompass a broader spectrum of service, which known as supply chain service, such as freight forwarding, customs brokerage, fulfillment, returns, financial transaction, repairs and less-than-truckload transportation services (UPS, 2010a).
UPS implement unprecedented and comprehensive cost management initiatives in 2009, such as network changes and organizational and structural realignments, which lead to a better financial performance than its competitors in 2010 (UPS, 2010b). This paper will analyze UPS financial performance for the past three year and compare them with industry average and it closet rival-FedEx, from profitability ratios, liquidity ratios, leverage ratios, activity ratios, valuation ratios and growth rate.
Financial Analysis of UPS | UPS | | | | | | Financial Ratios | | | | | | | | | | | Fiscal Year | | TTM | 2009 | 2008 | Industry | FedEx | Profitability Ratios | | | | | | | Gross Profit Margin | | 79.14% | 80.53% | 76.93% | 63.93% | 71.92% | Operating Profit Margin | | 9.76% | 8.39% | 10.45% | 1.89% | 6.39% | Net Profit Margin | | 5.66% | 4.75% | 5.83% | 1.30% | 3.82% | Return on Total Assets | | 8.16% | 6.75% | 8.47% | 1.95% | 5.64% | Return on Equity | | 36.62% | 29.87% | 31.67% | 5.42% | 9.88% | | | | | | | | Liquidity Ratios | | | | | | | Current Ratio | | 1.43 | 1.49 | 1.13 | 1.27 | 1.55 | Quick Ratio | | 1.26 | 1.29 | 0.93 | 1.26 | 1.29 |
UPS is the world’s largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions and less-than-truckload transportation services. In 2009, the company delivered an average of 15.1 million packages and documents per day throughout the US and to more than 200 countries and territories. The primary business of the company is the time-definite delivery of packages and documents. Besides that, the company also has extended their capabilities to encompass a broader spectrum of service, which known as supply chain service, such as freight forwarding, customs brokerage, fulfillment, returns, financial transaction, repairs and less-than-truckload transportation services (UPS, 2010a).
UPS implement unprecedented and comprehensive cost management initiatives in 2009, such as network changes and organizational and structural realignments, which lead to a better financial performance than its competitors in 2010 (UPS, 2010b). This paper will analyze UPS financial performance for the past three year and compare them with industry average and it closet rival-FedEx, from profitability ratios, liquidity ratios, leverage ratios, activity ratios, valuation ratios and growth rate.
Financial Analysis of UPS | UPS | | | | | | Financial Ratios | | | | | | | | | | | Fiscal Year | | TTM | 2009 | 2008 | Industry | FedEx | Profitability Ratios | | | | | | | Gross Profit Margin | | 79.14% | 80.53% | 76.93% | 63.93% | 71.92% | Operating Profit Margin | | 9.76% | 8.39% | 10.45% | 1.89% | 6.39% | Net Profit Margin | | 5.66% | 4.75% | 5.83% | 1.30% | 3.82% | Return on Total Assets | | 8.16% | 6.75% | 8.47% | 1.95% | 5.64% | Return on Equity | | 36.62% | 29.87% | 31.67% | 5.42% | 9.88% | | | | | | | | Liquidity Ratios | | | | | | | Current Ratio | | 1.43 | 1.49 | 1.13 | 1.27 | 1.55 | Quick Ratio | | 1.26 | 1.29 | 0.93 | 1.26 | 1.29 |