Union Pacific Corporation (UNP)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 9,082,000 | 9,917,000 | 9,338,000 | 7,834,000 | 8,554,000 |
| Revenue | US$ in thousands | 23,193,000 | 24,161,000 | 20,745,000 | 19,533,000 | 21,708,000 |
| Operating profit margin | 39.16% | 41.05% | 45.01% | 40.11% | 39.40% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $9,082,000K ÷ $23,193,000K
= 39.16%
The operating profit margin of Union Pacific Corp. has shown a decreasing trend over the past five years. The margin was 37.65% for the year ending December 31, 2023, compared to 39.87% in the prior year and 42.83% in 2021. This decline indicates that the company's operating expenses relative to its revenue have been increasing, leading to lower profitability per dollar of sales. While the margin remains relatively healthy, management may need to focus on controlling costs and improving operational efficiencies to potentially reverse this downward trend and enhance overall profitability.
Peer comparison
Dec 31, 2023