Union Pacific Corporation (UNP)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 25.29 | 28.65 | 30.23 | 32.15 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.74 + 28.20 – 31.65
= 25.29
The cash conversion cycle of Union Pacific Corporation has exhibited variability over the reporting periods provided. The cycle represents the time it takes for the company to convert its investments in inventory into cash receipts from customers.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 21.65 days to a high of 33.09 days. A lower cash conversion cycle indicates that Union Pacific Corporation is able to more quickly convert its investments in inventory into cash, which is generally seen as favorable.
In analyzing the trend, we observe that the cash conversion cycle showed fluctuations over time, indicating potential inefficiencies in managing inventory, receivables, and payables. It is important for the company to monitor and potentially streamline its working capital management practices to optimize the cash conversion cycle and improve overall liquidity and efficiency.
Overall, further examination and comparison with industry benchmarks and historical performance may provide insights into the company's operational efficiency, financial health, and potential areas for improvement in managing working capital.
Peer comparison
Dec 31, 2024
See also:
Union Pacific Corporation Cash Conversion Cycle (Quarterly Data)