Union Pacific Corporation (UNP)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 shown a consistent trend of gradual increase over the past eight quarters, starting at 0.72 in Q1 2022 and peaking at 0.74 in Q3 2022 before slightly decreasing to 0.72 in Q2 2023. This indicates that the company relies more on debt financing relative to its total capital structure.
A higher debt-to-capital ratio suggests that Union Pacific Corp. may have higher financial leverage and increased financial risk. It also indicates that a significant portion of the company's operations and investments are funded through debt, which could lead to higher interest expenses and potential cash flow constraints in the future.
It would be important for stakeholders, including investors and creditors, to closely monitor Union Pacific Corp.'s debt levels and management's strategies to optimize its capital structure. Any significant changes in the debt-to-capital ratio could signal shifts in the company's financial health and risk profile.
Peer comparison
Dec 31, 2023