UPSNEUTRAL

UPS Return on Equity (ROE) Analysis

29.6%

Updated 153h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity, so UPS's 29.6% means it earns $0.296 for every $1 of invested equity.

Sector Performance

81th percentile

UPS

29.6%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

33.4%(Jul 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity, so UPS's 29.6% means it earns $0.296 for every $1 of invested equity.

That figure sits well above the sector median of 13.5%, placing UPS in the 81st percentile among its peers. The trend is limited: year-over-year change is N/A, while quarter-over-quarter ROE fell 11.4%, from 33.4% to 29.6%, and no eight-quarter trend is available. The combination of a high ROE level with a recent quarterly drop points to a company that remains highly efficient but may be losing some momentum, creating a mild risk of continued erosion. This metric supports the overall NEUTRAL verdict because the strong profitability is countered by the recent decline, leaving no clear push toward positive or negative.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about UPS?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are UPS's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.