Union Pacific Corporation (UNP)
Debt-to-equity 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-equity 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-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $14,788,000K
= 0.00
The debt-to-equity ratio of Union Pacific Corp. has been fluctuating over the past eight quarters, with values ranging from 2.20 to 2.85. The trend indicates that the company has been increasing its leverage gradually during this period. A higher debt-to-equity ratio suggests a greater reliance on debt financing to fund its operations and growth initiatives compared to equity financing.
The company's debt-to-equity ratio exceeding 1 indicates that it has more debt than equity in its capital structure. While some level of debt can be beneficial in terms of leveraging opportunities and tax advantages, a high ratio like the ones observed for Union Pacific Corp. can raise concerns about its financial stability and ability to manage debt repayment obligations.
Investors and stakeholders may closely monitor the company's debt levels and its ability to generate sufficient earnings to cover interest expenses and repay debt. A consistently increasing debt-to-equity ratio could signal potential financial risks for Union Pacific Corp., requiring careful management of its debt levels and strategies to improve its financial health.
Peer comparison
Dec 31, 2023