Union Pacific Corporation (UNP)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,713,000 | 9,573,000 | 10,343,000 | 9,635,000 | 8,121,000 |
| Interest expense | US$ in thousands | 1,269,000 | 1,340,000 | 1,271,000 | 1,157,000 | 1,141,000 |
| Interest coverage | 7.65 | 7.14 | 8.14 | 8.33 | 7.12 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $9,713,000K ÷ $1,269,000K
= 7.65
Union Pacific Corporation's interest coverage ratio has shown a relatively stable trend over the past five years. The ratio was 7.12 in December 2020 and has improved gradually to 8.33 by December 2021. Although there was a slight dip to 8.14 in December 2022, the ratio remained above 8, indicating the company's ability to comfortably cover its interest expenses with its operating income. However, by December 2024, the interest coverage ratio decreased slightly to 7.65 but still remains at a healthy level. Overall, Union Pacific Corporation has maintained a strong interest coverage ratio, reflecting its capacity to meet its interest obligations using its earnings.
Peer comparison
Dec 31, 2024