2 Red Flags Waving Over UPS Cash Flow
If you ever come across the phrase "quality of earnings" and wonder what it means, then (NYSE: UPS) in 2025 is a good place to start thinking about it. Or rather, in this case, the quality of cash flow. The company's cash flow is a major debating point, not because the $5.5 billion in free cash flow (FCF) in 2025 barely covered the dividend payout of $5.4 billion. However, there are a couple of quality concerns around even that FCF figure.
The two issues identified here -- namely, UPS raising cash by selling properties, and generating profit from fuel surcharges -- are things that the company can't rely on forever.
Image source: Getty Images.
Source Fool.com
United Parcel Service Inc. Stock
€90.40
-0.680%
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