Union Pacific Corporation (UNP)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,573,000 | 9,562,000 | 10,036,000 | 10,397,000 | 10,343,000 | 10,362,000 | 10,075,000 | 10,015,000 | 9,635,000 | 9,184,000 | 8,782,000 | 7,969,000 | 8,121,000 | 8,205,000 | 8,424,000 | 8,956,000 | 8,797,000 | 8,897,000 | 8,927,000 | 8,751,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 14,788,000 | 14,004,000 | 13,194,000 | 12,454,000 | 12,163,000 | 11,743,000 | 12,710,000 | 11,897,000 | 14,161,000 | 13,917,000 | 14,303,000 | 16,254,000 | 16,958,000 | 17,199,000 | 16,452,000 | 15,991,000 | 18,128,000 | 18,016,000 | 18,171,000 | 17,742,000 |
| Return on total capital | 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% | 48.53% | 49.38% | 49.13% | 49.32% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 slight decline over the past 8 quarters, starting at 21.80% in Q4 2022 and decreasing to 19.17% in Q4 2023. This indicates a downward trend in the company's ability to generate returns on its total capital employed. Despite the fluctuations, the return on total capital has generally remained above the 20% mark, reflecting a strong performance in utilizing capital efficiently to generate profits. However, management may need to closely monitor and assess factors influencing this ratio to ensure sustainable and optimal utilization of the company's total capital in the future.
Peer comparison
Dec 31, 2023