• Summarize the trends in your company's ratio performance over the 3 most recent years. Be sure to address the following ratios included in Appendix C:
  • Profitability ratios: ROA, ROE, return on investment (ROI).
  • Liquidity ratios: quick ratio, current ratio.
  • Debt management ratios: long-term debt to equity, total debt to equity, interest coverage ratio.
  • Asset management ratios: total asset turnover, receivables turnover, inventory turnover, and accounts payable turnover.
  • Per share: book value per share

United Parcel Service Inc (NYS: UPS)
Exchange rate used is that of the Year End reported date
Profitability Ratios	12/31/2021		12/31/2020		12/31/2019
ROA % (Net)	19.56		2.23		8.23
ROE % (Net)	172.9		68.26		141.22
ROI % (Operating)	42.19		28.93		29.01
EBITDA Margin %	20.81		6.2		11.69
Calculated Tax Rate %	22.33		27.17		21.44
Revenue per Employee	182185		155427		149685
Liquidity Ratios	12/31/2021		12/31/2020		12/31/2019
Quick Ratio	1.32		1		0.99
Current Ratio	1.42		1.19		1.11
Net Current Assets % TA	10.61		5.13		2.92
Debt Management	12/31/2021		12/31/2020		12/31/2019
LT Debt to Equity	1.36		33.01		6.53
Total Debt to Equity	1.51		37		7.57
Interest Coverage	18.46		10.96		11.94
Asset Management	12/31/2021		12/31/2020		12/31/2019
Total Asset Turnover	1.48		1.4		1.37
Receivables Turnover	8.35		8.31		8.01
Accounts Payable Turnover	13.92		14.05		13.79
Accrued Expenses Turnover	20.8		21.53		20.85
Property Plant & Equip Turnover	2.96		2.69		2.6
Cash & Equivalents Turnover	12.04		15.14		15.66
Per Share	12/31/2021		12/31/2020		12/31/2019
Cash Flow per Share	17.17		12.03		10
Book Value per Share	16.39		0.76		3.81

• Interpret whether the trend for each ratio (listed in Part 1) is an improvement or a decline in performance for the company.
• Create a table that lists each ratio as either a strength or a weakness in the most current year, based on its trend and your interpretation.
• Determine the overall financial strength of the company based on the ratios identified as either strengths or weaknesses.
  • Consider all of the ratios discussed so far. Is the company's strength the fact that the debt management ratios are improving? Or is it that the liquidity ratios are increasing? Is the company's weakness that the turnover ratios are declining? Or is the company's weakness that debt management ratios are weakening?
  • Categorize the company's overall ratio performance as either strong, neutral, or weak, based on your determination from the ratios.
• Compare your chosen company's ratio performance to the industry competitor ratios in the most recent year based on Appendix D. Be sure to address the following ratios included on Appendix D:
  • Profitability ratios: ROA, ROE, gross margin, and net margin.
  • Liquidity ratios: quick ratio and current ratio.
  • Debt management ratios: long-term debt to equity, total debt to equity, and interest coverage ratio.
  • Asset management ratios: asset turnover and inventory turnover.
• Create a table that lists each ratio as either higher or lower than the average ratio for the competitors in the industry.

* all results are stated in US Dollars
Target Country (United States)
Peer Grouping by:	NAIC
Peer Scope:	country
Company Name	ROA % (Net) - latest	ROE % (Net) - latest	Gross Margin % - latest	Net Profit Margin % - latest	Quick Ratio - latest	Current Ratio - latest	LT Debt to Equity - latest	Total Debt to Equity - latest	Interest Coverage - latest	Total Asset Turnover - latest	Inventory Turnover - latest
Air T Inc	6.27	57.01	23.29	6.17	1.20	4.15	5.25	5.52	1.77	1.02	1.85
Air Transport Services Group, Inc.	7.38	21.25	79.17	13.34	0.85	1.13	0.98	0.98	5.47	0.55	8.06
FedEx Corp	4.53	15.58	55.85	4.09	1.31	1.43	0.81	0.81	9.82	1.11	60.98
Patriot Transportation Holding Inc (New)	1.07	1.54	77.48	0.77	0.93	2.65	-	-	-	1.39	20.63
United Parcel Service Inc	19.56	172.90	73.95	13.25	1.32	1.42	1.36	1.51	18.46	1.48	-
Average	-56.36	49.09	61.95	-16.04	0.99	1.64	1.74	1.84	11.43	1.62	22.88

• Categorize the company's overall financial performance as either better than average, average, or worse than average compared to the industry based on the ratios.
• Interpret which ratios are the most important and explain your reasoning.
• Justify your conclusion based on the table you created, your interpretation of which ratios are the most important, and the company's overall ratio performance compared to the industry competitors.

Answer rating: 100% (QA)

Here are the steps with calculations 1 Trend analysis of UPS ratios over past 3 years ROA 2021 Net Income Total Assets 7519 million 38138 million 1956 ... View the full answer