Union Pacific Corporation (UNP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Union Pacific Corp. show the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
- The debt-to-assets ratio has remained relatively stable around 0.50 over the past year, indicating that approximately half of the company's assets are financed through debt.
- The debt-to-capital ratio has increased slightly from 0.69 in Q4 2022 to 0.73 in Q1 2023, suggesting an increasing reliance on debt financing relative to capital.
- The debt-to-equity ratio demonstrates a higher level of leverage, with an increasing trend from 2.20 in Q4 2022 to 2.71 in Q1 2023, indicating that the company is financing more of its operations through debt compared to equity.
- The financial leverage ratio has also shown an upward trend, increasing from 4.54 in Q4 2022 to 5.30 in Q1 2023, reflecting the company's higher financial leverage and potential risk.
Overall, Union Pacific Corp. has maintained stable debt levels relative to its assets, but its increasing debt-to-equity and financial leverage ratios suggest a growing reliance on debt financing, which may pose risks in terms of financial stability and liquidity management in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the data provided for Union Pacific Corp.'s interest coverage ratio over the past eight quarters, we can observe a general trend of decreasing values from Q1 2022 to Q3 2023. The interest coverage ratio, which measures the company's ability to pay its interest expenses with its earnings before interest and taxes (EBIT), has shown a consistent decline over the period.
The interest coverage ratio ranged from a high of 8.31 in Q1 2022 to a low of 6.77 in Q3 2023. This indicates a slight decrease in the company's ability to cover its interest payments with its operating income. Despite the fluctuations, the interest coverage ratios have generally remained above 6.0, signaling that Union Pacific Corp. has had sufficient earnings to cover its interest expenses comfortably.
However, the downward trend in the interest coverage ratio may raise concerns about the company's ability to service its debt obligations from its operating income in the future. It is important for investors and stakeholders to monitor this ratio closely, as a further decline could indicate increased financial risk for Union Pacific Corp.