Union Pacific Corporation (UNP)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,379,000 | 6,998,000 | 6,523,000 | 5,349,000 | 5,919,000 |
| Total stockholders’ equity | US$ in thousands | 14,788,000 | 12,163,000 | 14,161,000 | 16,958,000 | 18,128,000 |
| ROE | 43.14% | 57.54% | 46.06% | 31.54% | 32.65% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,379,000K ÷ $14,788,000K
= 43.14%
Union Pacific Corp.'s return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE decreased to 43.14% from 57.54% in 2022, reflecting a decline in the company's profitability in generating returns for its shareholders. Despite this decrease, the 2023 ROE remains relatively high compared to the ROEs in 2021 (46.06%), 2020 (31.54%), and 2019 (32.65%).
The significant drop in ROE from 2022 to 2023 may indicate a decrease in the company's net income or an increase in shareholders' equity during the year. Shareholders may closely monitor these changes as they could impact their returns on investment. Overall, Union Pacific Corp.'s ROE trend suggests varying levels of efficiency in utilizing shareholders' equity to generate profits over the examined period.
Peer comparison
Dec 31, 2023