Union Pacific Corporation (UNP)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Inventory turnover 12.70 12.83 12.40 13.16 13.72 13.25 14.15 14.54 14.11 12.38 11.66 12.00 13.45 12.28 11.47 11.44 11.92 12.12 12.27 12.65
DOH days 28.74 28.45 29.43 27.74 26.60 27.56 25.80 25.10 25.88 29.49 31.29 30.41 27.14 29.73 31.83 31.92 30.61 30.11 29.74 28.85

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.70
= 28.74

The days of inventory on hand (DOH) for Union Pacific Corporation have fluctuated over the period from March 31, 2020, to December 31, 2024. The DOH indicates the number of days a company holds its average inventory before selling it.

The trend in Union Pacific's DOH shows a slight increase initially from around 28.85 days on March 31, 2020, to a peak of 31.92 days on March 31, 2021. However, the DOH started to decrease after that date, reaching as low as 25.10 days on March 31, 2023. This suggests that the company may have optimized its inventory management processes during this period.

Following the low point, the DOH increased slightly to 29.43 days on June 30, 2024. This increase could indicate potential challenges in managing inventory efficiently or changes in demand patterns affecting inventory levels. Overall, the DOH for Union Pacific Corporation has shown variability but appears to have stabilized around 28-30 days in recent periods.

It is essential for the company to monitor its inventory turnover and DOH closely to ensure optimal inventory levels, minimize carrying costs, and meet customer demand efficiently. A stable or decreasing trend in DOH indicates effective inventory management, while a rising trend may warrant further analysis to address any potential inefficiencies in the company's operations.

Peer comparison

Dec 31, 2024

Company name
Symbol
DOH
Union Pacific Corporation
UNP
28.74
CSX Corporation
CSX
35.05
Norfolk Southern Corporation
NSC
22.34

See also:

Union Pacific Corporation Average Inventory Processing Period (Quarterly Data)