Union Pacific Corporation (UNP)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 8,233,000 | 9,072,000 | 8,478,000 | 6,980,000 | 7,747,000 |
| Revenue | US$ in thousands | 23,193,000 | 24,161,000 | 20,745,000 | 19,533,000 | 21,708,000 |
| Pretax margin | 35.50% | 37.55% | 40.87% | 35.73% | 35.69% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $8,233,000K ÷ $23,193,000K
= 35.50%
The pretax margin of Union Pacific Corp. has shown a declining trend over the past five years, decreasing from 35.69% in 2019 to 34.13% in 2023. This indicates that the company's ability to generate profits before taxes relative to its total revenue has slightly weakened over the period. The drop in pretax margin could be attributed to various factors such as changes in operating expenses, competitive pressures, economic conditions, or pricing strategies. Overall, a declining pretax margin may suggest a potential need for the company to focus on cost management, operational efficiency, or pricing optimization strategies to improve profitability.
Peer comparison
Dec 31, 2023