Union Pacific Corporation (UNP)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,767,000 | 9,943,000 | 10,008,000 | 10,130,000 | 10,195,000 | 10,199,000 | 10,496,000 | 10,588,000 | 10,452,000 | 9,826,000 | 9,214,000 | 8,715,000 | 8,351,000 | 8,153,000 | 7,890,000 | 7,536,000 | 7,607,000 | 7,867,000 | 8,198,000 | 8,755,000 |
| Payables | US$ in thousands | 847,000 | 830,000 | 870,000 | 814,000 | 856,000 | 936,000 | 894,000 | 952,000 | 784,000 | 916,000 | 896,000 | 868,000 | 752,000 | 683,000 | 612,000 | 634,000 | 612,000 | 649,000 | 595,000 | 711,000 |
| Payables turnover | 11.53 | 11.98 | 11.50 | 12.44 | 11.91 | 10.90 | 11.74 | 11.12 | 13.33 | 10.73 | 10.28 | 10.04 | 11.11 | 11.94 | 12.89 | 11.89 | 12.43 | 12.12 | 13.78 | 12.31 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,767,000K ÷ $847,000K
= 11.53
The payables turnover ratio measures how efficiently a company is managing its trade credit by evaluating how quickly it pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Based on the provided data for Union Pacific Corporation, the payables turnover ratio has fluctuated over the quarters. It was relatively high in the second quarter of 2020 at 13.78, indicating that the company was paying its suppliers more frequently during that period. However, the ratio decreased in subsequent quarters, reaching a low of 10.04 in the first quarter of 2022.
The overall trend shows some variability, with the ratio fluctuating between 10.04 and 13.78. The company seems to have made efforts to manage its payables effectively, with some quarters showing higher turnover ratios compared to others.
It is essential for Union Pacific Corporation to monitor its payables turnover ratio regularly to ensure efficient management of its trade credit and maintain good relationships with its suppliers. Further analysis and comparison with industry benchmarks would provide additional insights into the company's performance in this aspect.
Peer comparison
Dec 31, 2024
See also:
Union Pacific Corporation Payables Turnover (Quarterly Data)