Union Pacific Corporation (UNP)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,513,000 | 23,193,000 | 24,161,000 | 20,745,000 | 19,533,000 |
| Property, plant and equipment | US$ in thousands | 58,171,000 | 57,398,000 | 56,038,000 | 54,871,000 | 54,161,000 |
| Fixed asset turnover | 0.42 | 0.40 | 0.43 | 0.38 | 0.36 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $24,513,000K ÷ $58,171,000K
= 0.42
Fixed asset turnover measures how efficiently a company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.
Analyzing Union Pacific Corporation's fixed asset turnover, we observe a gradual improvement from 0.36 in December 2020 to 0.42 in December 2024. This indicates that over the years, Union Pacific has been able to generate more revenue per dollar invested in fixed assets.
The peak value of 0.43 in December 2022 suggests the company was most efficient in utilizing its fixed assets to drive sales during that period. While there was a slight dip in 2023, the ratio recovered in 2024, indicating stable and effective management of fixed assets.
Overall, the increasing trend in fixed asset turnover ratio reflects Union Pacific's effectiveness in utilizing its fixed assets to generate revenue, which is a positive indicator of operational efficiency and resource management within the company.
Peer comparison
Dec 31, 2024