PROFITABILITY AND RISK ASSESSMENT UNITED PARCEL SERVICES (UPS)

July 2022 | 1 pages | ID: P990AA10A71AEN
Sadia Saeed

Abstracts

UPS is United Parcel Service Inc that is the leading package delivery corporation and logistic corporation. It has headquartered in the Georgia, USA. The company is delivering 15 million packages on daily basis to different customers in 220 states in the world (UPS, 2017). Ratio analysis is an effective tool for evaluating the profitability scenario and the risk indicators of the company. We have used various profit and risk ratios for developing the understanding of the current financial position of the company. The evaluation of the risk as well as profitability is considered highly essential in the business world so the evaluation of the efficiency, solvency position and the liquidity scenario of the corporation are significant to inspect the financial position of the business. In this report, the profit as well as the risk evaluation of the company is carried out, for five years from 2011 to 2015, with the help of the different financial ratios. (continued...)wordcount: 1000 words

Contents

Introduction
Analysis of Profitability
Return on equity
Net operating profit margin
Return on assets
Return on business assets
Financial leverage gain
Return on equity after excluding all expenses
Growth ratios
Net profit margin ratio
Common sized income statement
Standardized Statements
Risk Factors analysis
Solvency
Liquidity
Efficiency
The Altman Z-Score and probability of bankruptcy
References