Union Pacific Corporation (UNP)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 67,132,000 | 65,449,000 | 63,525,000 | 62,398,000 | 61,673,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $67,132,000K
= 0.00
The debt-to-assets ratio of Union Pacific Corp. has shown a gradual increase over the past five years, starting at 0.41 in 2019 and reaching 0.49 in 2023. This indicates that the company's reliance on debt financing in relation to its total assets has been on the rise.
A higher debt-to-assets ratio suggests that a larger proportion of the company's assets are funded by debt rather than equity. While a moderate debt-to-assets ratio can be beneficial for leveraging growth opportunities and tax advantages, a high ratio may signal increased financial risk and a potential strain on the company's ability to meet debt obligations.
In Union Pacific Corp.'s case, the increasing trend in the debt-to-assets ratio should be carefully monitored to ensure that the company's debt levels do not become unsustainable. It is important for investors and stakeholders to assess the company's overall financial health and ability to manage its debt levels effectively, considering factors like interest rates, debt maturity profiles, and cash flow generation capacity.
Peer comparison
Dec 31, 2023