Union Pacific Corporation (UNP)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,747,000 | 6,379,000 | 6,998,000 | 6,523,000 | 5,349,000 |
| Total stockholders’ equity | US$ in thousands | 16,890,000 | 14,788,000 | 12,163,000 | 14,161,000 | 16,958,000 |
| ROE | 39.95% | 43.14% | 57.54% | 46.06% | 31.54% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,747,000K ÷ $16,890,000K
= 39.95%
The return on equity (ROE) of Union Pacific Corporation has shown an increasing trend from 31.54% as of December 31, 2020, to a peak of 57.54% as of December 31, 2022. This indicates that the company has been effectively utilizing shareholder equity to generate profits and create value for investors.
However, the ROE declined in the subsequent years, dropping to 39.95% as of December 31, 2024. Despite the decrease, the ROE remains relatively high compared to the industry average, reflecting Union Pacific Corporation's ability to generate strong returns on the equity invested in the business.
It is important for stakeholders to monitor the ROE performance over time to assess the company's efficiency in utilizing equity capital and its ability to generate sustainable earnings growth. Further analysis of the factors driving the fluctuations in ROE will provide deeper insights into the company's financial performance and strategic decisions.
Peer comparison
Dec 31, 2024