Union Pacific Corporation (UNP)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,021,000 | 4,149,000 | 4,498,000 | 4,194,000 | 4,148,000 | 3,813,000 | 3,752,000 | 4,058,000 | 3,952,000 | 4,405,000 | 3,976,000 | 3,876,000 | 3,551,000 | 3,810,000 | 3,764,000 | 3,719,000 | 4,214,000 | 5,130,000 | 5,083,000 | 3,804,000 |
| Total current liabilities | US$ in thousands | 5,254,000 | 5,366,000 | 4,287,000 | 4,534,000 | 5,106,000 | 5,304,000 | 5,249,000 | 6,209,000 | 5,520,000 | 5,712,000 | 6,002,000 | 5,462,000 | 5,744,000 | 5,111,000 | 4,357,000 | 4,871,000 | 4,173,000 | 4,841,000 | 5,279,000 | 4,641,000 |
| Current ratio | 0.77 | 0.77 | 1.05 | 0.93 | 0.81 | 0.72 | 0.71 | 0.65 | 0.72 | 0.77 | 0.66 | 0.71 | 0.62 | 0.75 | 0.86 | 0.76 | 1.01 | 1.06 | 0.96 | 0.82 |
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 shown fluctuations over the period under review. The ratio, which measures the company's ability to cover its short-term obligations with its current assets, ranged from a low of 0.62 to a high of 1.06.
The current ratio was below 1 in several quarters, indicating that the company may have had difficulty meeting its short-term liabilities with its current assets alone. However, the ratio improved in some quarters, surpassing 1, which suggests a healthier liquidity position.
It is important to note that a current ratio below 1 may not always be a cause for concern, as certain industries or companies with strong cash flows may operate effectively with ratios below this threshold. Nevertheless, management should monitor the current ratio closely to ensure the company maintains sufficient liquidity to meet its short-term obligations.
Overall, the current ratio trend of Union Pacific Corporation reflects the ebbs and flows of its liquidity position over the period, highlighting the importance of maintaining a balance between current assets and current liabilities.
Peer comparison
Dec 31, 2024