Union Pacific Corporation (UNP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 67,715,000 | 67,132,000 | 65,449,000 | 63,525,000 | 62,398,000 |
| Total stockholders’ equity | US$ in thousands | 16,890,000 | 14,788,000 | 12,163,000 | 14,161,000 | 16,958,000 |
| Financial leverage ratio | 4.01 | 4.54 | 5.38 | 4.49 | 3.68 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $67,715,000K ÷ $16,890,000K
= 4.01
The financial leverage ratio of Union Pacific Corporation has exhibited a fluctuating trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 3.68 in 2020, the ratio increased steadily to peak at 5.38 in 2022, indicating a higher level of financial leverage during that year. Subsequently, there was a notable drop in the ratio to 4.54 in 2023, followed by a further decrease to 4.01 in 2024.
Overall, the trend suggests that Union Pacific Corporation utilized higher levels of debt to finance its operations in 2022, as evidenced by the peak in the financial leverage ratio. However, the subsequent declines in 2023 and 2024 indicate potential efforts to reduce financial leverage, which may have been driven by various strategic decisions or financial considerations within the company. It is important for stakeholders to monitor these fluctuations in the financial leverage ratio to assess the company's risk exposure and financial health.
Peer comparison
Dec 31, 2024