Union Pacific Corporation (UNP)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	11.96	12.36	12.65	12.79
Receivables turnover	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	13.61	13.49	12.53	13.60
Payables turnover	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	11.99	13.40	13.14	12.56
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	476.41	67.83	—	—	—	—	—	—

Based on the provided data for Union Pacific Corp., the company's activity ratios indicate the following:

- Inventory turnover: The inventory turnover ratio for all quarters is reported as 0.00, suggesting that Union Pacific Corp. likely has minimal inventory on hand relative to its sales volume. This could indicate efficient inventory management or a just-in-time inventory strategy.

- Receivables turnover: The receivables turnover ratio shows a consistent range between 11.42 to 13.56 across the quarters. This indicates that Union Pacific Corp. collects its accounts receivables approximately 11 to 13 times a year on average. A higher turnover implies quicker collections, which is generally positive for cash flow management.

- Payables turnover: The payables turnover ratio is reported as 0.00 for all quarters, which may indicate that Union Pacific Corp. manages its payables in a way that they are turned over very quickly. This could be due to prompt payments to suppliers or favorable credit terms.

- Working capital turnover: The data provided does not include the working capital turnover ratio for any quarter. Therefore, it is not possible to assess how efficiently Union Pacific Corp. is generating revenue relative to its working capital.

Overall, the company's receivables turnover ratio indicates effective management of accounts receivables, while the inventory and payables turnover ratios suggest efficient inventory and payables management practices, respectively. However, the absence of data for the working capital turnover ratio limits a comprehensive analysis of Union Pacific Corp.'s overall efficiency in utilizing its working capital.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	30.52	29.53	28.85	28.55
Days of sales outstanding (DSO)	days	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	26.82	27.06	29.13	26.84
Number of days of payables	days	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	30.44	27.23	27.77	29.06

Days of inventory on hand (DOH) data is missing, hence, an analysis based on this ratio cannot be provided.

Regarding Days of Sales Outstanding (DSO), Union Pacific Corp. has shown a decreasing trend throughout the quarters, which indicates that the company is collecting its accounts receivable more efficiently. This signifies a positive development in managing its receivables over time.

Information is not available for the number of days of payables for Union Pacific Corp. Therefore, an analysis of the company's payables turnover cannot be provided based on the data provided.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	0.40	0.42	0.43	0.43
Total asset turnover	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	0.35	0.36	0.37	0.37

The fixed asset turnover ratio for Union Pacific Corp. has remained relatively stable over the past eight quarters, ranging between 0.41 and 0.45. This indicates that the company generates approximately $0.42 to $0.45 in revenue for every dollar invested in fixed assets. The consistency in this ratio suggests that Union Pacific Corp. is effectively utilizing its fixed assets to generate sales.

In terms of total asset turnover, the company has also shown consistency, with ratios fluctuating between 0.35 and 0.38 over the same period. This ratio reflects the company's ability to generate sales relative to its total assets. The stable total asset turnover indicates that Union Pacific Corp. is efficiently utilizing its total assets to drive revenue generation.

Overall, the long-term activity ratios for Union Pacific Corp. suggest that the company is effectively managing its assets to generate revenue, both in terms of fixed assets and total assets. This consistent performance indicates strong operational efficiency and resource utilization within the company.