Union Pacific Corporation (UNP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.56 | 0.56 | 0.76 | 0.69 | 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 |
| Cash ratio | 0.20 | 0.18 | 0.27 | 0.21 | 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 |
The current ratio of Union Pacific Corporation has shown fluctuations over the past few years, ranging from a low of 0.62 to a high of 1.06. Although there are variations, the current ratio indicates that the company may have had some challenges in meeting its short-term obligations with its current assets.
In terms of the quick ratio, which excludes inventory from current assets, the company's ability to meet its short-term obligations has also fluctuated but generally remained low, ranging from 0.47 to 0.87. This suggests that the company may have had limited ability to meet its obligations using only its most liquid assets.
The cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, has also varied over the years, ranging from 0.14 to 0.55. This indicates that the company may have had some difficulty in paying off its short-term obligations using only its cash reserves.
Overall, based on the liquidity ratios, Union Pacific Corporation may have faced challenges in meeting its short-term obligations with its current assets, which could indicate potential liquidity risks. Monitoring these ratios closely will be essential for assessing the company's financial health and liquidity position.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 25.29 | 28.65 | 30.23 | 32.15 | 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 |
The cash conversion cycle of Union Pacific Corporation has shown some fluctuations over the periods analyzed. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales, reflecting the efficiency of its working capital management.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged between 21.65 days and 33.09 days. A lower cash conversion cycle indicates that the company is able to collect cash more quickly from its operations, which is generally favorable for liquidity and profitability.
The company experienced a decrease in its cash conversion cycle from March 31, 2022, to March 31, 2023, reaching its lowest point at 21.65 days. This suggests that Union Pacific Corporation improved its efficiency in managing its working capital during that period.
However, the cycle increased again by the end of December 31, 2024, to 25.29 days. It's essential for the company to analyze the reasons behind this increase and consider optimizing its working capital management to shorten the cycle and enhance cash flow efficiency in the future.