Union Pacific Corporation (UNP)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,767,000 | 10,195,000 | 10,452,000 | 8,351,000 | 7,607,000 |
| Payables | US$ in thousands | 847,000 | 856,000 | 784,000 | 752,000 | 612,000 |
| Payables turnover | 11.53 | 11.91 | 13.33 | 11.11 | 12.43 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $9,767,000K ÷ $847,000K
= 11.53
The payables turnover ratio for Union Pacific Corporation has shown some fluctuations over the years, ranging from 11.11 to 13.33. In general, a higher payables turnover ratio indicates that the company is able to efficiently manage its payments to suppliers and creditors. A lower ratio could suggest longer payment cycles or potential liquidity issues.
In this case, Union Pacific's payables turnover ratio has been relatively stable, with a slight increase in 2022. This may indicate improved efficiency in managing payables and working capital. However, the slight decrease in 2023 and 2024 could be a sign of extended payment cycles or changes in the company's operations.
Overall, it is important to further analyze the reasons behind these fluctuations in the payables turnover ratio to assess the company's financial health and its relationships with suppliers and creditors. This ratio, when considered alongside other financial metrics, can provide valuable insights into Union Pacific Corporation's financial management and operational efficiency.
Peer comparison
Dec 31, 2024