Why the Earnings at United Parcel Service Aren't So Hot - Motley Fool Over the past 12 months, UPS generated $2,446.0 million cash on net income of $3,488.0 million. That means it turned 4.9% of its revenue into FCF. That sounds OK. However, the FCF is a lot less than net income. Ideally, we'd like to see the opposite. UPS's issue isn't questionable cash flow boosts, but items in that suspect group that reduced cash flow. Within the questionable cash flow figure -- here a negative-- plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) constituted the biggest reversal. Overall, the biggest drag on FCF came from capital expenditures, which consumed 36.2% of cash from operations.