United Parcel Service provides parcel delivery services around the world. The following table shows the various revenue sources for the comparative years ended December 31, 2004 and 2003:
Revenue (in millions): U.S. domestic package:
|
2004
|
2003
|
|
Next Day Air
|
$ 6,040
|
$ 5,580
|
|
Two-to-Three Day Air
|
3,161
|
2,982
|
|
Ground
|
17,409
|
16,460
|
|
Total U.S. domestic package
|
$26,610
|
$25,022
|
|
International package:
|
|
|
|
Domestic
|
$ 1,346
|
$ 1,134
|
|
Export
|
4,944
|
4,001
|
|
Cargo
|
472
|
426
|
|
Total international package Non-package:
|
$ 6,762
|
$ 5,561
|
|
UPS Supply Chain Solutions (consulting services)
|
$ 2,346
|
$ 2,126
|
|
Other
|
864
|
776
|
|
Total non-package
|
$ 3,210
|
$ 2,902
|
|
Total
|
$36,582
|
$33,485
|
1. Provide a horizontal analysis of UPS revenues.
2. Why is the total percentage change not equal to the sum of the percentage changes for each of the major subcategories (U.S. domestic, international, and non-package)?
3. Interpret the horizontal analysis.