Is the business good?
How good a business is UPS?
United Parcel Service earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
15%
Return on invested capital · cost of capital 9.0% · 5.9 points above what the capital costs: growth creates value
- Operating margin
- 7.3%
Operating margin · Integrated Freight & Logistics median 6.1% · 12 months to Q2 2026
- Cash conversion
- 1.19×
Cash conversion · 0.62× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.47%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 9.1% |
| FY2021 | 13% |
| FY2022 | 13% |
| FY2023 | 10% |
| FY2024 | 9.3% |
| FY2025 | 8.9% |
Details›
- Operating margin12 months to Q2 2026
- 7.3%
- Net margin12 months to Q2 2026
- 5.1%
- Free cash flow margin
- 6.1%
- Revenue, trailing twelve months
- $89.9B
- Free cash flow, trailing twelve months
- $5.46B
- Net income, trailing twelve months
- $4.57B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Integrated Freight & Logistics
Ranks #3 of 10 by Smart Score