Union Pacific Corporation (UNP)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $14,788,000K
= 0.00
The debt-to-equity ratio of Union Pacific Corp. has exhibited fluctuations over the past five years.
In 2019, the company had a relatively low debt-to-equity ratio of 1.39, indicating a conservative capital structure with lower debt levels compared to equity. However, this ratio increased in subsequent years, reaching 1.58 in 2020 and further rising to 2.10 in 2021. This upward trend suggests that Union Pacific Corp. took on more debt relative to equity, possibly to fund capital investments, acquisitions, or other strategic initiatives.
By 2022, the debt-to-equity ratio surged to 2.74, indicating a significant increase in debt relative to equity. This could imply higher financial leverage and potentially increased financial risk for the company. Notably, in 2023, there was a slight reduction in the ratio to 2.20, but it still remains elevated compared to historical levels.
Overall, the trend in Union Pacific Corp.'s debt-to-equity ratio suggests a shift towards a more leveraged financial structure in recent years, which may have implications for the company's financial stability and ability to manage debt obligations in the long term. Investors and stakeholders should closely monitor how the company manages its debt levels and assess the associated risks.
Peer comparison
Dec 31, 2023