Union Pacific Corporation (UNP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,055,000 | 973,000 | 960,000 | 1,799,000 | 831,000 |
| Short-term investments | US$ in thousands | 16,000 | 46,000 | 46,000 | 60,000 | 60,000 |
| Receivables | US$ in thousands | 2,073,000 | 1,891,000 | 1,722,000 | 1,505,000 | 1,595,000 |
| Total current liabilities | US$ in thousands | 5,106,000 | 5,520,000 | 5,744,000 | 4,173,000 | 4,351,000 |
| Quick ratio | 0.62 | 0.53 | 0.47 | 0.81 | 0.57 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,055,000K
+ $16,000K
+ $2,073,000K)
÷ $5,106,000K
= 0.62
The quick ratio of Union Pacific Corp. over the past five years has shown fluctuations. The ratio stood at 0.67 as of December 31, 2023, indicating that for every dollar of current liabilities, the company had $0.67 in assets readily convertible to cash. Comparing this to the previous year, the quick ratio increased from 0.58 in 2022 to 0.67 in 2023, suggesting an improved liquidity position.
However, looking at the trend over the past five years, there have been fluctuations in the quick ratio. In 2021, the quick ratio was at its lowest point of 0.51, indicating weaker liquidity compared to other years. Subsequently, there was a significant improvement in 2022 to 0.58 before further increasing in 2023 to 0.67.
In 2020, Union Pacific Corp. had a quick ratio of 0.86, which was the highest in the five-year period considered. This indicates a strong liquidity position in that year. In contrast, 2019 saw a quick ratio of 0.62, which was lower compared to 2020 but slightly higher than 2022.
Overall, the quick ratio of Union Pacific Corp. has shown variability over the past five years, with fluctuations indicating changes in the company's ability to meet its short-term obligations with its most liquid assets. It would be essential for stakeholders to closely monitor this ratio to assess the company's liquidity position and its ability to cover short-term liabilities effectively.
Peer comparison
Dec 31, 2023