Union Pacific Corporation (UNP)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,021,000 | 4,148,000 | 3,952,000 | 3,551,000 | 4,214,000 |
| Total current liabilities | US$ in thousands | 5,254,000 | 5,106,000 | 5,520,000 | 5,744,000 | 4,173,000 |
| Current ratio | 0.77 | 0.81 | 0.72 | 0.62 | 1.01 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,021,000K ÷ $5,254,000K
= 0.77
The current ratio of Union Pacific Corporation has displayed fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 1.01, indicating that the company had just enough current assets to cover its current liabilities. However, by the end of 2021, the current ratio decreased significantly to 0.62, suggesting a potential liquidity concern as current liabilities exceeded current assets.
Over the following years, there was a slight improvement in the current ratio, with values of 0.72 as of December 31, 2022, 0.81 as of December 31, 2023, and 0.77 as of December 31, 2024. While these ratios show some progress, the company still appears to struggle in maintaining a comfortable cushion of current assets to meet its short-term obligations.
Overall, the trend in Union Pacific Corporation's current ratio indicates fluctuations and challenges in managing liquidity effectively. Further analysis of the company's current asset and liability management practices may be necessary to address these concerns and improve the financial health of the business.
Peer comparison
Dec 31, 2024