Union Pacific Corporation (UNP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,193,000 | 24,161,000 | 20,745,000 | 19,533,000 | 21,708,000 |
| Property, plant and equipment | US$ in thousands | 57,398,000 | 56,038,000 | 54,871,000 | 54,161,000 | 53,916,000 |
| Fixed asset turnover | 0.40 | 0.43 | 0.38 | 0.36 | 0.40 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $23,193,000K ÷ $57,398,000K
= 0.40
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its investments in fixed assets. A higher fixed asset turnover indicates that the company is generating more revenue from its fixed assets.
Looking at the trend for Union Pacific Corp. over the past five years, we can see that the fixed asset turnover ratio has fluctuated. In 2023, the ratio stood at 0.42, a slight decrease from 0.44 in 2022. This indicates that the company generated $0.42 in revenue for every dollar invested in fixed assets in 2023.
Compared to the previous years, the ratio was lower in 2020 at 0.36 and in 2019 at 0.40. This suggests that the company was less efficient in utilizing its fixed assets to generate revenue during those years.
Overall, while there have been fluctuations, the company's fixed asset turnover ratio has been relatively stable over the past five years, indicating a consistent performance in generating revenue from its fixed assets. Further analysis would be needed to understand the factors driving these changes and assess the company's overall operational efficiency.
Peer comparison
Dec 31, 2023