Union Pacific Corporation (UNP)

Cash conversion cycle

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
Cash conversion cycle days 28.58 24.25 22.44 21.65 27.31 28.71 30.24 27.61 24.57 28.04 33.09 31.65 29.37 29.14 28.33 27.47 26.90 29.36 30.21 26.32

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.60 + 32.62 – 30.65
= 28.58

The cash conversion cycle of Union Pacific Corp. has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 31.37 days, slightly higher than the previous quarter but lower than the levels seen in Q2 and Q3 2023. This indicates that the company took longer to convert its investments in inventory and receivables into cash in Q4.

Looking further back, the trend suggests that Q2 2023 had the lowest cash conversion cycle at 26.91 days, indicating the company was more efficient in managing its working capital during that period. However, Q2 2022 and Q3 2022 had higher cash conversion cycles, with the cycle peaking at 31.97 days in Q2 2022.

Overall, fluctuations in Union Pacific Corp.'s cash conversion cycle over the past two years suggest varying efficiency in managing its cash flows, inventory levels, and receivables. The company should continue to monitor and optimize its working capital management to maintain a healthy cash conversion cycle.

Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Union Pacific Corporation
UNP
28.58
CSX Corporation
CSX
-25.54
Norfolk Southern Corporation
NSC
-87.06

See also:

Union Pacific Corporation Cash Conversion Cycle (Quarterly Data)