Union Pacific Corporation (UNP)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,573,000 | 10,343,000 | 9,635,000 | 8,121,000 | 8,797,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 14,788,000 | 12,163,000 | 14,161,000 | 16,958,000 | 18,128,000 |
| Return on total capital | 64.73% | 85.04% | 68.04% | 47.89% | 48.53% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $9,573,000K ÷ ($—K + $14,788,000K)
= 64.73%
The return on total capital for Union Pacific Corp. has shown a fluctuating trend over the past five years. In 2023, the return on total capital was 19.17%, a decrease from the previous year but still at a respectable level. Despite this decrease, the company's ability to generate returns from its total capital remains strong.
Comparing the current return on total capital to previous years, we can observe that the highest return was recorded in 2022 at 21.80%, indicating a peak performance during that period. The returns in 2021 and 2019 were also robust at 21.28% and 19.74%, respectively.
However, 2020 saw a slight dip in the return on total capital to 17.93%, possibly due to various external factors impacting the company's operations or profitability during that year. Overall, Union Pacific Corp. has historically demonstrated effective utilization of its total capital to generate returns for its stakeholders, despite some fluctuations in performance over the years.
Peer comparison
Dec 31, 2023