Union Pacific Corporation (UNP)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,195,000 | 10,452,000 | 8,351,000 | 7,607,000 | 8,999,000 |
| Inventory | US$ in thousands | 743,000 | 741,000 | 621,000 | 638,000 | 751,000 |
| Inventory turnover | 13.72 | 14.11 | 13.45 | 11.92 | 11.98 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,195,000K ÷ $743,000K
= 13.72
The inventory turnover ratio for Union Pacific Corp. has been consistently reported as 0.00 for the past five years, from 2019 to 2023. This indicates that the company is not effectively managing its inventory levels relative to its sales. A low or zero inventory turnover ratio could imply excess or obsolete inventory, poor sales performance, or inefficient inventory management practices.
It is essential for Union Pacific Corp. to optimize its inventory turnover ratio to ensure efficient use of working capital, reduce carrying costs, and improve overall financial performance. Management should focus on inventory control, demand forecasting, and supply chain management strategies to enhance the company's inventory turnover ratio in the future.
Peer comparison
Dec 31, 2023