Union Pacific Corporation (UNP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.01 | 4.54 | 5.38 | 4.49 | 3.68 |
Based on the provided data, Union Pacific Corporation exhibits strong solvency ratios across the board. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio are all consistently at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has either very low or no debt relative to its assets, capital, and equity, suggesting a robust financial position in terms of solvency.
Furthermore, the Financial leverage ratio shows a decreasing trend from 3.68 in December 31, 2020, to 4.01 in December 31, 2024. This implies that the company is relying less on debt to finance its operations over the years, which typically signals a more conservative and sustainable financial structure.
Overall, based on these solvency ratios, Union Pacific Corporation appears to be in a healthy financial position with minimal debt obligations and a prudent approach to managing its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.65 | 7.14 | 8.14 | 8.33 | 7.12 |
The interest coverage ratio for Union Pacific Corporation has shown a generally stable trend over the past five years, ranging from 7.12 to 8.33. This indicates the company's ability to meet its interest obligations comfortably. A ratio above 1 suggests that the company is generating enough operating income to cover its interest expenses. Union Pacific's interest coverage ratios above 7 demonstrate a healthy financial position and a strong ability to service its debt obligations. However, there was a slight decline in the ratio from 8.33 in 2021 to 7.14 in 2023, indicating a potential increase in interest expenses relative to operating income in that period. Overall, Union Pacific Corporation's interest coverage ratios reflect a solid financial standing with adequate earnings to cover its interest costs.