Union Pacific Corporation (UNP)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 67,132,000 | 66,540,000 | 66,033,000 | 65,968,000 | 65,449,000 | 65,343,000 | 64,440,000 | 64,051,000 | 63,525,000 | 62,360,000 | 62,073,000 | 61,793,000 | 62,398,000 | 63,714,000 | 63,555,000 | 62,216,000 | 61,673,000 | 61,978,000 | 61,708,000 | 61,319,000 |
| 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 |
| Financial leverage ratio | 4.54 | 4.75 | 5.00 | 5.30 | 5.38 | 5.56 | 5.07 | 5.38 | 4.49 | 4.48 | 4.34 | 3.80 | 3.68 | 3.70 | 3.86 | 3.89 | 3.40 | 3.44 | 3.40 | 3.46 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $67,132,000K ÷ $14,788,000K
= 4.54
The financial leverage ratio of Union Pacific Corp. has been fluctuating over the past eight quarters, ranging from a low of 4.54 in Q4 2023 to a high of 5.56 in Q3 2022. This ratio measures the extent to which the company relies on debt to finance its operations and investments.
A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure, which can increase financial risk due to higher interest payments and potential solvency issues. Conversely, a lower ratio suggests a stronger equity base and lower financial risk.
The downward trend from Q3 2022 to Q4 2023 may indicate that Union Pacific Corp. has been reducing its reliance on debt financing or strengthening its equity position. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023
See also:
Union Pacific Corporation Financial Leverage (Quarterly Data)