Union Pacific Corporation (UNP)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 9,082,000 | 9,087,000 | 9,543,000 | 9,834,000 | 9,917,000 | 9,945,000 | 9,744,000 | 9,722,000 | 9,338,000 | 8,904,000 | 8,503,000 | 7,684,000 | 7,834,000 | 7,928,000 | 8,131,000 | 8,737,000 | 8,554,000 | 8,664,000 | 8,699,000 | 8,538,000 |
| Total assets | US$ in thousands | 67,132,000 | 66,540,000 | 66,033,000 | 65,968,000 | 65,449,000 | 65,343,000 | 64,440,000 | 64,051,000 | 63,525,000 | 62,360,000 | 62,073,000 | 61,793,000 | 62,398,000 | 63,714,000 | 63,555,000 | 62,216,000 | 61,673,000 | 61,978,000 | 61,708,000 | 61,319,000 |
| Operating ROA | 13.53% | 13.66% | 14.45% | 14.91% | 15.15% | 15.22% | 15.12% | 15.18% | 14.70% | 14.28% | 13.70% | 12.44% | 12.55% | 12.44% | 12.79% | 14.04% | 13.87% | 13.98% | 14.10% | 13.92% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $9,082,000K ÷ $67,132,000K
= 13.53%
Union Pacific Corp.'s operating return on assets (operating ROA) has shown a gradual decline from 15.15% in Q4 2022 to 13.53% in Q4 2023. This trend indicates that the company's profitability relative to its total assets has weakened over the period under review.
The decrease in operating ROA could be attributed to various factors such as increasing operating expenses, lower operational efficiency, or declining revenue generation efficiency. A lower operating ROA suggests that the company may be less effective in utilizing its assets to generate operating profits.
Overall, Union Pacific Corp. should closely monitor its operating ROA and investigate the underlying reasons for the decline to make necessary strategic adjustments to enhance its profitability and efficiency in utilizing its assets effectively.
Peer comparison
Dec 31, 2023