Union Pacific Corporation (UNP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,055,000 | 973,000 | 960,000 | 1,799,000 | 831,000 |
| Short-term investments | US$ in thousands | 16,000 | 46,000 | 46,000 | 60,000 | 60,000 |
| Total current liabilities | US$ in thousands | 5,106,000 | 5,520,000 | 5,744,000 | 4,173,000 | 4,351,000 |
| Cash ratio | 0.21 | 0.18 | 0.18 | 0.45 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,055,000K
+ $16,000K)
÷ $5,106,000K
= 0.21
The cash ratio of Union Pacific Corp. has varied over the past five years. In 2023, the cash ratio stood at 0.26, indicating that the company had $0.26 in cash and cash equivalents for every $1 of current liabilities. This represented a slight increase from 2022 when the cash ratio was 0.24.
Comparing 2023 to 2021, there has been a noticeable improvement in the cash ratio from 0.21 to 0.26. This suggests that Union Pacific Corp. has strengthened its liquidity position, increasing its ability to cover its short-term obligations with cash on hand.
The cash ratio in 2023 was also significantly higher than in 2020 when it stood at 0.50. This could indicate a lower liquidity level compared to the previous year. However, it is important to note that a very high cash ratio, as seen in 2020, may also suggest that the company is holding excess cash that could be more efficiently used elsewhere in the business.
When compared to 2019, the cash ratio in 2023 remained the same at 0.26, suggesting that Union Pacific Corp. has maintained a consistent level of liquidity over this period.
Overall, the upward trend in the cash ratio from 2021 to 2023 indicates an improvement in Union Pacific Corp.'s liquidity position and its ability to meet short-term liabilities with cash reserves. However, it is essential to consider the broader financial context and the company's overall financial health when interpreting this ratio.
Peer comparison
Dec 31, 2023