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United Parcel Service (United Parcel Service) Beneish M-Score

: -2.79 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for United Parcel Service's Beneish M-Score or its related term are showing as below:

UPS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18   Med: -2.75   Max: -2
Current: -2.79

During the past 13 years, the highest Beneish M-Score of United Parcel Service was -2.00. The lowest was -3.18. And the median was -2.75.


United Parcel Service Beneish M-Score Historical Data

The historical data trend for United Parcel Service's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

United Parcel Service Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.79 -2.71 -2.82 -2.64 -2.79

United Parcel Service Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 - - - -2.79

Competitive Comparison

For the Integrated Freight & Logistics subindustry, United Parcel Service's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


United Parcel Service Beneish M-Score Distribution

For the Transportation industry and Industrials sector, United Parcel Service's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where United Parcel Service's Beneish M-Score falls into.



United Parcel Service Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of United Parcel Service for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9833+0.528 * 1.1053+0.404 * 0.9805+0.892 * 0.9065+0.115 * 1.0143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.052881-0.327 * 1.0465
=-2.79

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $11,216 Mil.
Revenue was $90,958 Mil.
Gross Profit was $17,231 Mil.
Total Current Assets was $19,413 Mil.
Total Assets was $70,857 Mil.
Property, Plant and Equipment(Net PPE) was $41,253 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,366 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $17,676 Mil.
Long-Term Debt & Capital Lease Obligation was $22,672 Mil.
Net Income was $6,708 Mil.
Gross Profit was $217 Mil.
Cash Flow from Operations was $10,238 Mil.
Total Receivables was $12,583 Mil.
Revenue was $100,338 Mil.
Gross Profit was $21,009 Mil.
Total Current Assets was $22,217 Mil.
Total Assets was $71,124 Mil.
Property, Plant and Equipment(Net PPE) was $38,474 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,188 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $18,140 Mil.
Long-Term Debt & Capital Lease Obligation was $20,559 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(11216 / 90958) / (12583 / 100338)
=0.12331 / 0.125406
=0.9833

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(21009 / 100338) / (17231 / 90958)
=0.209382 / 0.189439
=1.1053

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (19413 + 41253) / 70857) / (1 - (22217 + 38474) / 71124)
=0.143825 / 0.146687
=0.9805

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=90958 / 100338
=0.9065

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(3188 / (3188 + 38474)) / (3366 / (3366 + 41253))
=0.076521 / 0.075439
=1.0143

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 90958) / (0 / 100338)
=0 / 0
=1

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((22672 + 17676) / 70857) / ((20559 + 18140) / 71124)
=0.569429 / 0.544106
=1.0465

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(6708 - 217 - 10238) / 70857
=-0.052881

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

United Parcel Service has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.


United Parcel Service Beneish M-Score Related Terms

Thank you for viewing the detailed overview of United Parcel Service's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


United Parcel Service (United Parcel Service) Business Description

Address
55 Glenlake Parkway, N.E. Atlanta, Atlanta, GA, USA, 30328
As the world's largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 25 million packages per day to residences and businesses across the globe. UPS' domestic U.S. package operations generate around 64% of total revenue while international package makes up 20%. Air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remainder.
Executives
Nando Cesarone officer: President, UPS International 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Laura J Lane officer: Chief Corp Affairs & Comms Off 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Brian Newman officer: Chief Financial Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Brothers Norman M. Jr officer: Sr VP, Gen Counsel & Sec 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Darrell L Ford officer: Chief Human Resources Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kathleen M. Gutmann officer: Senior Vice President 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kevin M Warren officer: Chief Marketing Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Bala Subramanian officer: Chief Digital & Tech Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Philippe R Gilbert officer: Pres, Supply Chain Solutions 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Juan R. Perez officer: Senior Vice President 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Scott A. Price officer: Chief Transformation Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Russell Stokes director ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Wayne M. Hewett director 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154
Charlene A Thomas officer: Chief Human Resources Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kathleen E Johnson director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328