Union Pacific Corporation (UNP)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $14,788,000K)
= 0.00
The debt-to-capital ratio of Union Pacific Corp. has exhibited a fluctuating trend over the past five years, ranging from 0.58 in 2019 to 0.73 in 2022. The ratio indicates the proportion of the company's capital structure financed by debt, with values closer to 1 implying higher reliance on debt financing.
In 2023, the debt-to-capital ratio decreased to 0.69 from the previous year's 0.73, suggesting a relative reduction in debt financing compared to total capital. This may indicate a shift towards a more balanced capital structure or a decrease in the company's overall debt levels.
It is important to note that a higher debt-to-capital ratio can indicate increased financial risk due to higher debt obligations, while a lower ratio may imply a more conservative financial approach. Investors and creditors often monitor this ratio to assess a company's financial health and leverage levels.
Peer comparison
Dec 31, 2023