Union Pacific Corporation (UNP)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,573,000 | 9,562,000 | 10,036,000 | 10,397,000 | 10,343,000 | 10,362,000 | 10,075,000 | 10,015,000 | 9,635,000 | 9,184,000 | 8,782,000 | 7,969,000 | 8,121,000 | 8,205,000 | 8,424,000 | 8,956,000 | 8,797,000 | 8,897,000 | 8,927,000 | 8,751,000 |
| Interest expense (ttm) | US$ in thousands | 1,340,000 | 1,342,000 | 1,323,000 | 1,300,000 | 1,271,000 | 1,233,000 | 1,208,000 | 1,174,000 | 1,157,000 | 1,141,000 | 1,146,000 | 1,153,000 | 1,141,000 | 1,140,000 | 1,111,000 | 1,081,000 | 1,050,000 | 1,012,000 | 987,000 | 931,000 |
| Interest coverage | 7.14 | 7.13 | 7.59 | 8.00 | 8.14 | 8.40 | 8.34 | 8.53 | 8.33 | 8.05 | 7.66 | 6.91 | 7.12 | 7.20 | 7.58 | 8.28 | 8.38 | 8.79 | 9.04 | 9.40 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,573,000K ÷ $1,340,000K
= 7.14
The interest coverage ratio of Union Pacific Corp. has shown a generally stable trend over the past eight quarters, ranging from 6.77 to 8.31. This indicates the company's ability to meet its interest obligations through its operating income, with Q1 2022 and Q2 2022 showing the highest coverage ratios at 8.31 and 8.09, respectively. Despite a slight decline in recent quarters, the interest coverage ratios remain at a healthy level above 7, indicating the company's ability to comfortably cover its interest expenses. It is essential for investors and creditors to monitor this ratio to assess the company's financial health and its ability to handle debt obligations effectively.
Peer comparison
Dec 31, 2023
See also:
Union Pacific Corporation Interest Coverage (Quarterly Data)