Union Pacific Corporation (UNP)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 0.79 0.89 0.72 0.75
Quick ratio 0.62 0.51 0.51 0.49 0.53 0.59 0.48 0.53 0.47 0.57 0.65 0.59 0.81 0.87 0.79 0.62 0.57 0.65 0.52 0.53
Cash ratio 0.21 0.14 0.16 0.17 0.18 0.23 0.14 0.17 0.18 0.24 0.27 0.26 0.45 0.55 0.52 0.26 0.20 0.29 0.20 0.21

The liquidity ratios of Union Pacific Corp. indicate its ability to meet its short-term obligations. The current ratio has been fluctuating between 0.65 and 0.81 over the past eight quarters, with a decreasing trend overall. This suggests that the company may be facing challenges in covering its current liabilities with its current assets.

The quick ratio, which provides a more stringent measure of liquidity as it excludes inventory from current assets, has also been decreasing from 0.58 in Q4 2022 to 0.54 in Q1 2023. This indicates that Union Pacific Corp. may have difficulty in meeting its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity, has fluctuated between 0.19 and 0.27 over the same period. While the cash ratio provides a clearer picture of the company's ability to cover its current liabilities with cash and cash equivalents alone, the decreasing trend suggests that Union Pacific Corp. may be experiencing challenges in maintaining sufficient cash reserves.

Overall, the liquidity ratios of Union Pacific Corp. show a trend of declining liquidity over the past quarters, which may raise concerns about the company's ability to meet its short-term obligations without facing liquidity constraints. It would be important for the company to closely monitor its liquidity position and implement strategies to improve its ability to meet short-term financial obligations.

See also:

Union Pacific Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 28.58 24.25 22.44 21.65 27.31 28.71 30.24 27.61 24.57 28.04 33.09 31.65 29.37 29.14 28.33 27.47 26.90 29.36 30.21 26.32

The cash conversion cycle of Union Pacific Corp. has shown fluctuations over the past eight quarters. The cycle measures the time required for the company to convert its investments in inventory and other resources into cash inflows from sales.

In the most recent quarter, the cash conversion cycle stood at 31.37 days, which is slightly higher compared to the previous quarter at 29.24 days. This indicates that the company took a bit longer to convert its investments into cash during Q4 2023.

Looking back further, the trend shows a decrease in the cash conversion cycle from Q2 2023 to Q4 2022, suggesting an improvement in the efficiency of converting inventory to cash during that period. However, there was a slight increase in the cycle between Q1 2023 and Q2 2023, before a decline in Q3 2023.

Overall, Union Pacific Corp. has experienced fluctuations in its cash conversion cycle over the quarters analyzed, indicating changes in its inventory management, accounts receivable collection, and accounts payable payment processes. Further analysis of the underlying reasons for these changes could provide insights into the company's operational efficiency and cash flow management.