Union Pacific Corporation (UNP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,713,000 | 9,573,000 | 10,343,000 | 9,635,000 | 8,121,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,890,000 | 14,788,000 | 12,163,000 | 14,161,000 | 16,958,000 |
| Return on total capital | 57.51% | 64.73% | 85.04% | 68.04% | 47.89% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $9,713,000K ÷ ($—K + $16,890,000K)
= 57.51%
The return on total capital for Union Pacific Corporation has shown a positive trend over the past five years. Starting at 47.89% on December 31, 2020, it increased to 68.04% by December 31, 2021, and further rose to 85.04% by December 31, 2022. In 2023, the return slightly decreased to 64.73%, but remained at a relatively high level. By the end of 2024, the return on total capital stood at 57.51%.
Overall, the company has been able to efficiently generate returns on its total capital throughout the period, with the highest return achieved in 2022. Despite the slight decline in 2023 and a further decrease in 2024, the return on total capital for Union Pacific Corporation remains at a satisfactory level, indicating effective capital utilization and profitability.
Peer comparison
Dec 31, 2024