Union Pacific Corporation (UNP)
Payables 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 |
| Payables | US$ in thousands | 856,000 | 784,000 | 752,000 | 612,000 | 749,000 |
| Payables turnover | 11.91 | 13.33 | 11.11 | 12.43 | 12.01 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,195,000K ÷ $856,000K
= 11.91
The payables turnover ratio of Union Pacific Corp. has been consistently reported as 0.00 for the years 2019 to 2023. This indicates that the company is not effectively managing its accounts payable. A payables turnover ratio of 0.00 suggests that the company is taking an extended period to pay its suppliers or is not effectively utilizing its accounts payable to support its operations.
A low or zero payables turnover ratio can have several implications, such as strained supplier relationships due to delayed payments, potential cash flow issues, or inefficiencies in the company's procurement and payment processes. It may also indicate that the company is not taking advantage of potential discounts for early payment offered by suppliers.
Furthermore, a consistently low payables turnover ratio over multiple years could raise concerns about the company's financial health and operational efficiency. Investors and stakeholders may view this as a red flag, prompting further investigation into the company's financial management practices and overall performance.
Peer comparison
Dec 31, 2023