Union Pacific Corporation (UNP)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	12.70	12.83	12.40	13.16	13.72	13.25	14.15	14.54	14.11	12.38	11.66	12.00	13.45	12.28	11.47	11.44	11.92	12.12	12.27	12.65
Receivables turnover	12.94	11.90	11.22	10.82	11.19	12.09	13.16	12.43	12.67	10.98	10.60	10.88	12.05	12.63	12.34	11.99	12.98	12.53	14.55	12.91
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
Working capital turnover	—	—	112.63	—	—	—	—	—	—	—	—	—	—	—	—	—	476.41	67.83	—	—

Based on the provided data, we can analyze the activity ratios of Union Pacific Corporation as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory. A higher ratio indicates that inventory is selling faster.
- Union Pacific's inventory turnover has been relatively stable, with a slight decrease from 12.65 in March 2020 to 12.70 in December 2024.
- Overall, the company is efficiently managing its inventory, with turnover consistently above 10 times per year.

2. Receivables Turnover:
- The receivables turnover ratio shows how well the company is collecting on its credit sales. A higher ratio suggests faster collection.
- Union Pacific's receivables turnover has fluctuated over the years, ranging from 10.60 in June 2022 to 14.55 in June 2020.
- The company could aim to improve its collection efficiency, as the turnover ratio has shown some variability.

3. Payables Turnover:
- The payables turnover ratio measures how quickly the company pays its suppliers. A higher ratio indicates faster payment.
- Union Pacific's payables turnover has also varied, with a range from 10.04 in March 2022 to 13.78 in June 2020.
- The company seems to have a relatively effective payment system in place, with turnover consistently above 10 times per year.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently the company is using its working capital to generate revenue.
- Union Pacific's data shows that the working capital turnover was only available for a few periods, such as 67.83 in September 2020 and 112.63 in June 2024.
- It appears that the company has effectively utilized its working capital in generating revenue during those specific periods.

In conclusion, Union Pacific Corporation has shown efficiency in managing its inventory, collecting receivables, and paying suppliers. However, there may be opportunities for improvement in receivables turnover to ensure faster collection of outstanding payments.

Average number of days

		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
Days of inventory on hand (DOH)	days	28.74	28.45	29.43	27.74	26.60	27.56	25.80	25.10	25.88	29.49	31.29	30.41	27.14	29.73	31.83	31.92	30.61	30.11	29.74	28.85
Days of sales outstanding (DSO)	days	28.20	30.67	32.53	33.73	32.62	30.19	27.73	29.37	28.81	33.24	34.44	33.56	30.30	28.89	29.57	30.44	28.12	29.14	25.08	28.26
Number of days of payables	days	31.65	30.47	31.73	29.33	30.65	33.50	31.09	32.82	27.38	34.03	35.49	36.35	32.87	30.58	28.31	30.71	29.37	30.11	26.49	29.64

Union Pacific Corporation's activity ratios show trends in how efficiently the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH): The average number of days Union Pacific holds inventory increased slightly from 28.85 days in March 2020 to 31.29 days in June 2022 before declining to 28.74 days by December 2024. This indicates that the company effectively managed its inventory levels during the period, with a slight increase and subsequent decrease in inventory holding periods.

2. Days of Sales Outstanding (DSO): The days sales outstanding ranged from a low of 25.08 days in June 2020 to a high of 34.44 days in June 2022, with fluctuations in between. By December 2024, the DSO decreased to 28.20 days. This suggests that Union Pacific was efficient in collecting its receivables, although there were periods of longer collection times which improved by the end of the period.

3. Number of Days of Payables: The company's payables days ranged from 26.49 days in June 2020 to 36.35 days in March 2022, indicating fluctuations in the time taken to pay its obligations. By December 2024, the days of payables decreased to 31.65 days, showing the company's ability to manage its payables more effectively in the latter part of the period.

Overall, Union Pacific Corporation demonstrated relatively consistent management of its inventory, accounts receivable, and accounts payable over the period, with some fluctuations in activity ratios that improved by the end of the period.

Long-term

	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
Fixed asset turnover	0.42	0.42	0.41	0.41	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
Total asset turnover	0.36	0.36	0.35	0.35	0.35	0.35	0.36	0.37	0.37	0.34	0.34	0.33	0.33	0.34	0.33	0.31	0.31	0.31	0.32	0.35

The fixed asset turnover ratio of Union Pacific Corporation has shown a slight improvement over the past few years, ranging from 0.36 in December 2020 to 0.42 in December 2024. This indicates that the company is generating more revenue relative to its fixed assets, which is a positive sign of efficiency in utilizing its long-term assets.

On the other hand, the total asset turnover ratio has been relatively stable, hovering around the range of 0.31 to 0.36 from 2020 to 2024. This suggests that the company is generating a consistent level of revenue in relation to its total assets over the years.

Overall, the fixed asset turnover ratio improvement signifies that Union Pacific Corporation is effectively utilizing its fixed assets to generate revenue, while the stable total asset turnover ratio indicates consistency in generating revenue relative to the total assets held by the company.