Union Pacific Corporation (UNP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 60.16% | 58.96% | 57.89% | 56.70% | 56.04% | 56.38% | 56.34% | 56.42% | 56.37% | 56.39% | 57.63% | 59.08% | 59.74% | 78.70% | 79.30% | 79.79% | 79.66% | 79.73% | 78.69% | 77.45% |
| Operating profit margin | 39.62% | 39.60% | 39.37% | 39.16% | 39.16% | 38.86% | 39.70% | 40.47% | 41.40% | 44.13% | 44.81% | 45.65% | 45.01% | 41.98% | 41.35% | 39.80% | 40.11% | 40.44% | 40.25% | 40.54% |
| Pretax margin | 35.87% | 35.90% | 35.59% | 35.19% | 35.50% | 35.16% | 36.25% | 37.44% | 37.87% | 40.51% | 40.78% | 41.51% | 40.87% | 37.92% | 37.13% | 35.31% | 35.73% | 36.04% | 36.20% | 36.54% |
| Net profit margin | 27.52% | 27.39% | 27.33% | 27.32% | 27.50% | 27.22% | 28.01% | 28.80% | 29.21% | 31.38% | 31.50% | 31.99% | 31.44% | 29.19% | 28.60% | 27.02% | 27.38% | 27.40% | 27.54% | 27.85% |
The profitability ratios of Union Pacific Corporation have shown some fluctuations over the years.
- Gross Profit Margin: The gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, has declined steadily from 79.79% in March 31, 2021, to 56.04% by December 31, 2023. There was a slight increase to 60.16% by December 31, 2024, indicating some recovery.
- Operating Profit Margin: The operating profit margin, indicating the percentage of revenue remaining after deducting operating expenses, fluctuated with highs and lows. It peaked at 45.01% on December 31, 2021, then decreased before stabilizing around 39-41% from June 30, 2023, to December 31, 2024.
- Pretax Margin: The pretax margin, which reflects the company's profitability before taxes, exhibited a similar trend. It reached its peak at 40.87% on December 31, 2021, but gradually declined to around 35-36% by December 31, 2024, showing a decrease in profitability over the period.
- Net Profit Margin: The net profit margin, representing the remaining profit after all expenses have been deducted, followed a pattern similar to the pretax margin. It peaked at 31.44% on December 31, 2021, then decreased before stabilizing around 27-29% from June 30, 2023, to December 31, 2024.
Overall, the company experienced fluctuations in profitability ratios over the years, with a general declining trend in margins from 2021 onwards, suggesting potential challenges in maintaining profitability levels.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.34% | 14.20% | 13.80% | 13.62% | 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% |
| Return on assets (ROA) | 9.96% | 9.82% | 9.58% | 9.50% | 9.50% | 9.57% | 10.19% | 10.61% | 10.69% | 10.82% | 10.63% | 10.64% | 10.27% | 9.93% | 9.48% | 8.44% | 8.57% | 8.43% | 8.75% | 9.65% |
| Return on total capital | 59.18% | 60.21% | 59.22% | 61.02% | 64.73% | 68.28% | 76.06% | 83.48% | 85.04% | 88.24% | 79.27% | 84.18% | 68.04% | 65.99% | 61.40% | 49.03% | 47.89% | 47.71% | 51.20% | 56.01% |
| Return on equity (ROE) | 39.95% | 40.02% | 39.38% | 40.79% | 43.14% | 45.45% | 51.02% | 56.19% | 57.54% | 60.21% | 53.89% | 57.26% | 46.06% | 44.49% | 41.12% | 32.09% | 31.54% | 31.23% | 33.82% | 37.53% |
Based on the provided data for Union Pacific Corporation, we can analyze its profitability ratios as follows:
1. Operating Return on Assets (Operating ROA): This ratio indicates the company's ability to generate operating earnings relative to its total assets. Union Pacific Corporation's Operating ROA has shown a generally increasing trend over the periods analyzed, ranging from 12.44% in September 2020 to 15.22% in September 2022, with a slight decline to 13.53% in December 2023 before increasing to 14.34% in December 2024.
2. Return on Assets (ROA): ROA measures the company's overall efficiency in generating profits from its assets. Union Pacific Corporation's ROA experienced fluctuations during the analyzed periods, ranging from 8.43% in September 2020 to 10.82% in September 2022. The ratio declined to 9.50% in December 2024 after peaking at 10.64% in March 2022.
3. Return on Total Capital: This ratio reflects the returns generated from all sources of capital, including debt and equity. Union Pacific Corporation's Return on Total Capital varied notably over the periods, increasing from 47.71% in September 2020 to 88.24% in September 2022 before declining to 59.18% in December 2024.
4. Return on Equity (ROE): ROE assesses the return earned by the company on shareholders' equity. Union Pacific Corporation's ROE demonstrated a fluctuating pattern, ranging from 31.23% in September 2020 to 60.21% in September 2022. The ratio decreased to 39.95% in December 2024 after reaching a peak of 60.21% in September 2022.
In summary, Union Pacific Corporation's profitability ratios highlight a mix of trends, with some ratios showing improvements over time while others exhibit fluctuations. It is essential for investors and stakeholders to monitor these ratios to assess the company's financial performance and profitability sustainability.
See also:
Union Pacific Corporation Profitability Ratios (Quarterly Data)