Union Pacific Corporation (UNP)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,513,000 | 23,193,000 | 24,161,000 | 20,745,000 | 19,533,000 |
| Receivables | US$ in thousands | 1,894,000 | 2,073,000 | 1,891,000 | 1,722,000 | 1,505,000 |
| Receivables turnover | 12.94 | 11.19 | 12.78 | 12.05 | 12.98 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $24,513,000K ÷ $1,894,000K
= 12.94
The receivables turnover ratio for Union Pacific Corporation has exhibited some fluctuations over the past five years. In 2020, the company's receivables turnover was 12.98, indicating that on average, Union Pacific collected its accounts receivable approximately 13 times during the year. Over the subsequent years, the turnover ratio slightly decreased to 12.05 in 2021, then increased to 12.78 in 2022, followed by a decrease to 11.19 in 2023 before rising again to 12.94 in 2024.
A high receivables turnover ratio generally suggests that the company is efficient in collecting payments from its customers, which is a positive indicator of its liquidity and operational effectiveness. Conversely, a declining ratio could indicate potential issues with the company's credit policies, customer payment behaviors, or the quality of its receivables.
Overall, Union Pacific Corporation has maintained relatively strong receivables turnover ratios throughout the period, with minor fluctuations that could be further analyzed to assess underlying factors affecting the efficiency of its accounts receivable management.
Peer comparison
Dec 31, 2024