United Parcel Service, Inc. — Earnings Quality Grade F
UPS · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 46 days, change +3 days YoY
AR growth 3.1% vs revenue growth -2.6%
Revenue -2.6%, CFFO -16.5%. Cash follows revenue
Expense Quality
Inventory -10.5% vs COGS -2.8%. Normal
CapEx growth -5.7% vs revenue -2.6%. Normal
Insufficient data
Gross margin 18.1%, change +0.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.52. Profits backed by cash
FCF $4.8B, FCF/NI = 0.86
Accruals ratio = -3.9%. Low accruals
Cash $5.9B covers only 21% of debt $28.6B
Balance Sheet Health
Goodwill+Intangibles $9.9B = 61% of equity. Over 50%
Debt/EBITDA = 2.4x. Healthy
Other assets 5.0% vs revenue -2.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 34% YoY
Manipulation Score
Insufficient data
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10