Union Pacific Corporation (UNP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,016,000 | 1,055,000 | 973,000 | 960,000 | 1,799,000 |
| Short-term investments | US$ in thousands | 20,000 | 16,000 | 46,000 | 46,000 | 60,000 |
| Receivables | US$ in thousands | 1,894,000 | 2,073,000 | 1,891,000 | 1,722,000 | 1,505,000 |
| Total current liabilities | US$ in thousands | 5,254,000 | 5,106,000 | 5,520,000 | 5,744,000 | 4,173,000 |
| Quick ratio | 0.56 | 0.62 | 0.53 | 0.47 | 0.81 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,016,000K
+ $20,000K
+ $1,894,000K)
÷ $5,254,000K
= 0.56
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For Union Pacific Corporation, the quick ratio has shown some fluctuations over the years.
As of December 31, 2020, the quick ratio was 0.81, indicating that the company had $0.81 in liquid assets available to cover each $1 of current liabilities. This suggests a relatively strong position in the short term.
However, by December 31, 2021, the quick ratio had decreased to 0.47, signaling a decline in the company's ability to quickly pay off its short-term obligations with its current assets. This may raise concerns about liquidity management.
Over the following years, the quick ratio improved to 0.53 by December 31, 2022, then further to 0.62 by December 31, 2023, suggesting a positive trend in the company's ability to meet short-term obligations with available liquid assets.
By December 31, 2024, the quick ratio had decreased slightly to 0.56, indicating that while the company still has a sufficient level of liquid assets to cover short-term liabilities, there may be room for improvement in managing short-term liquidity.
In conclusion, the analysis of Union Pacific Corporation's quick ratio indicates fluctuations over the years, with some improvement in recent periods but with a slight decline in the most recent year. This metric provides insights into the company's short-term liquidity position and its ability to meet immediate financial obligations.
Peer comparison
Dec 31, 2024