Aureus
DWarning

United Parcel Service, Inc.(UPS)

D

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin5.4%Free Cash Flow / Revenue
Cash Conversion151.7%Operating CF / Net Income
Free Cash Flow$4.8B
Revenue$88.7B
Net Cash-$22.7BNet debt position
Debt / FCF6.0xElevated debt burden
Current Ratio1.22Adequate short-term liquidity
YoY FCF Growth+16.6%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-0.5Elevated debt-to-FCF ratio (6.0x)
→
+1Strong YoY FCF growth (16.6% YoY)
→
-0.5Highly volatile FCF (consistency: 0.84)
→
FinalD

Analysis Summary

Strengths

  • Excellent cash conversion (152%)
  • FCF trend is improving

Concerns

  • Low FCF margin (5.4%)
  • Heavy debt position ($22.7B net debt, 6.0x FCF)
  • High debt-to-FCF ratio (6.0x)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin5.4%
Net Margin6.3%
Operating CF Margin9.5%
CapEx Ratio4.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$22.7BNet debt position
Debt / FCF6.0xElevated debt burden
Current Ratio1.22Adequate liquidity
Debt / Equity1.76Moderate leverage

Quarterly FCF Trend

+16.6% YoYImproving (+16.6%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameUnited Parcel Service, Inc.
SectorIndustrials
Free Cash Flow$4.8B
Revenue$88.7B
Net Income$5.6B
Operating Cash Flow$8.4B
Capital Expenditure$3.7B
FCF Margin5.4%
Cash Conversion Rate151.7%
Net Margin6.3%
Total Debt$28.6B
Total Cash$5.9B
Net Cash-$22.7B
Current Ratio1.22
Debt / Equity1.76
Debt / FCF6.0x
YoY FCF Growth+16.6%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeD
Data SourceYahoo Finance

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