Union Pacific Corporation (UNP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,148,000 | 3,952,000 | 3,551,000 | 4,214,000 | 3,459,000 |
| Total current liabilities | US$ in thousands | 5,106,000 | 5,520,000 | 5,744,000 | 4,173,000 | 4,351,000 |
| Current ratio | 0.81 | 0.72 | 0.62 | 1.01 | 0.79 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,148,000K ÷ $5,106,000K
= 0.81
The current ratio of Union Pacific Corp. has exhibited fluctuations over the past five years. The current ratio is a measure of a company's ability to meet its short-term obligations with its current assets.
In 2023, the current ratio decreased to 0.81 from 0.72 in 2022, indicating an improvement in the company's short-term liquidity position. However, the ratio still remains below 1, suggesting that Union Pacific Corp. may have difficulty covering its current liabilities with its current assets.
Comparing to previous years, the current ratio has shown a general upward trend since 2021 when it was 0.62, reaching its highest point at 1.01 in 2020 before declining in the following years. The ratio was notably low in 2019 at 0.79.
Overall, while there has been some improvement in the current ratio in 2023 compared to the previous year, Union Pacific Corp. should continue to monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023