Union Pacific Corporation (UNP)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,016,000 | 1,055,000 | 973,000 | 960,000 | 1,799,000 |
| Short-term investments | US$ in thousands | 20,000 | 16,000 | 46,000 | 46,000 | 60,000 |
| Total current liabilities | US$ in thousands | 5,254,000 | 5,106,000 | 5,520,000 | 5,744,000 | 4,173,000 |
| Cash ratio | 0.20 | 0.21 | 0.18 | 0.18 | 0.45 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,016,000K
+ $20,000K)
÷ $5,254,000K
= 0.20
The cash ratio of Union Pacific Corporation has shown a declining trend over the years, decreasing from 0.45 on December 31, 2020, to 0.20 on December 31, 2024. This indicates that the company has a lower proportion of cash and cash equivalents to its current liabilities in recent years. While the ratio remains above 0.1, suggesting the company has some liquidity to cover short-term obligations, the decreasing trend may raise concerns about the company's ability to meet its immediate financial obligations solely through its cash resources. It would be important for stakeholders to monitor the company's liquidity position and assess its ability to manage short-term financial needs effectively.
Peer comparison
Dec 31, 2024