Union Pacific Corporation (UNP)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 8,794,000 | 8,233,000 | 9,072,000 | 8,478,000 | 6,980,000 |
| Revenue | US$ in thousands | 24,513,000 | 23,193,000 | 24,161,000 | 20,745,000 | 19,533,000 |
| Pretax margin | 35.87% | 35.50% | 37.55% | 40.87% | 35.73% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $8,794,000K ÷ $24,513,000K
= 35.87%
Based on the data provided, Union Pacific Corporation's pretax margin has exhibited fluctuating trends over the years. The pretax margin increased from 35.73% as of December 31, 2020, to 40.87% as of December 31, 2021, indicating improved profitability before taxes. However, in the following years, the pretax margin experienced slight declines, standing at 37.55% as of December 31, 2022, 35.50% as of December 31, 2023, and 35.87% as of December 31, 2024.
The upward trend in pretax margin from 2020 to 2021 suggests that Union Pacific Corporation was able to manage its expenses better or generate higher revenues relative to its operating costs. The subsequent declines in the pretax margin could indicate various factors such as increased operating expenses, changes in revenue streams, or economic challenges affecting profitability before taxes.
Overall, while Union Pacific Corporation achieved a notable increase in pretax margin in 2021, it experienced some fluctuations in the following years. Further analysis of the company's financial performance and efficiency in managing costs would be necessary to understand the underlying factors contributing to the changes in pretax margin over the years.
Peer comparison
Dec 31, 2024