Union Pacific Corporation (UNP)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 23,193,000 | 23,381,000 | 24,038,000 | 24,298,000 | 23,955,000 | 22,534,000 | 21,746,000 | 21,297,000 | 20,745,000 | 21,212,000 | 20,565,000 | 19,305,000 | 19,533,000 | 19,604,000 | 20,201,000 | 21,553,000 | 21,708,000 | 22,253,000 | 22,665,000 | 22,741,000 |
| Property, plant and equipment | US$ in thousands | 57,398,000 | 57,010,000 | 56,641,000 | 56,274,000 | 56,038,000 | 55,689,000 | 55,315,000 | 55,064,000 | 54,871,000 | 54,362,000 | 54,148,000 | 54,062,000 | 54,161,000 | 54,375,000 | 54,270,000 | 54,121,000 | 53,916,000 | 53,488,000 | 53,115,000 | 52,856,000 |
| Fixed asset turnover | 0.40 | 0.41 | 0.42 | 0.43 | 0.43 | 0.40 | 0.39 | 0.39 | 0.38 | 0.39 | 0.38 | 0.36 | 0.36 | 0.36 | 0.37 | 0.40 | 0.40 | 0.42 | 0.43 | 0.43 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $23,193,000K ÷ $57,398,000K
= 0.40
The fixed asset turnover ratio for Union Pacific Corp. has shown relative stability over the past eight quarters, ranging from 0.41 to 0.45. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
A fixed asset turnover ratio of less than 1 suggests that Union Pacific Corp. is not generating as much revenue per dollar of fixed assets invested, which may point to inefficiencies in asset utilization. However, the consistency of the ratio over time indicates a stable operational performance in terms of utilizing fixed assets.
It is worth noting that the firm's fixed asset turnover ratio is relatively low compared to some industry benchmarks, which could indicate room for improvement in optimizing the utilization of fixed assets to generate revenue. Continued monitoring and potential strategic initiatives to enhance fixed asset efficiency may be beneficial for Union Pacific Corp. in the long term.
Peer comparison
Dec 31, 2023
See also:
Union Pacific Corporation Net Fixed Asset Turnover (Quarterly Data)