Union Pacific Corporation (UNP)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 67,715,000 | 67,570,000 | 67,817,000 | 67,266,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 16,890,000 | 16,584,000 | 16,489,000 | 15,665,000 | 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 |
| Financial leverage ratio | 4.01 | 4.07 | 4.11 | 4.29 | 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 |
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 shown fluctuations over the past few years. The ratio was relatively stable around 3.7 to 3.9 from March 2020 to March 2021, indicating a moderate level of leverage. However, starting from June 2021, the ratio began to increase significantly, reaching a peak of 5.56 by September 2022. This surge suggests that the company has been taking on more debt relative to its equity, which could potentially increase financial risk.
Following the peak in September 2022, the financial leverage ratio decreased slightly but remained elevated, hovering around 5.00 from June 2023 to June 2024. Although there was a gradual decline in the ratio during this period, it is important to monitor this trend to ensure the company's leverage remains at a manageable level.
Overall, the upward trend in Union Pacific Corporation's financial leverage ratio from June 2021 to September 2022 indicates a significant increase in leverage, which may warrant further scrutiny regarding the company's debt management and capital structure decisions.
Peer comparison
Dec 31, 2024
See also:
Union Pacific Corporation Financial Leverage (Quarterly Data)