Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Union Pacific Corp., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
Over the observed period, the company demonstrates a generally improving solvency position, although recent quarters show some reversal of that trend. Several key ratios indicate a decreasing reliance on debt financing and a strengthening ability to meet its financial obligations. However, the latest reported values suggest a potential stabilization or slight increase in leverage.
- Debt to Equity
- The debt to equity ratio exhibits a consistent decline from 2.71 in March 2022 to 1.72 in December 2025. This indicates a decreasing proportion of debt relative to shareholder equity, suggesting improved financial stability. However, the ratio increased to 2.05 in March 2025, indicating a potential shift in capital structure. The June 2025 value of 2.02 continues this trend, before decreasing again to 1.84 in September 2025 and 1.72 in December 2025.
- Debt to Equity (Including Operating Lease Liability)
- Similar to the standard debt to equity ratio, this metric also shows a downward trend from 2.82 to 1.76 over the period. The inclusion of operating lease liabilities results in higher values, but the trend remains consistent with the standard ratio. The same pattern of increase in March 2025 (2.09) and subsequent fluctuations is observed.
- Debt to Capital
- The debt to capital ratio mirrors the trend observed in debt to equity, decreasing from 0.73 to 0.63. This suggests a reduced proportion of debt in the company’s capital structure. The decline is gradual and consistent, indicating a deliberate effort to manage debt levels.
- Debt to Capital (Including Operating Lease Liability)
- This ratio, incorporating operating lease liabilities, also demonstrates a declining trend from 0.74 to 0.64, reinforcing the observation of decreasing debt reliance. The pattern of change is consistent with the debt to capital ratio.
- Debt to Assets
- The debt to assets ratio shows a decrease from 0.50 to 0.46, indicating a smaller proportion of assets financed by debt. This suggests improved asset coverage and reduced financial risk. The ratio remains relatively stable in the latter part of the period, with a slight increase to 0.48 in March 2025 and 0.49 in March 2026.
- Debt to Assets (Including Operating Lease Liability)
- This metric, including operating lease liabilities, also declines from 0.52 to 0.47, mirroring the trend in the standard debt to assets ratio. The inclusion of lease liabilities results in slightly higher values, but the overall trend remains consistent.
- Financial Leverage
- Financial leverage, as measured by this ratio, decreases from 5.38 to 3.77, indicating a reduction in the company’s use of debt to amplify returns. This suggests a more conservative financial strategy. The decline is consistent throughout the period.
- Interest Coverage
- The interest coverage ratio demonstrates a generally stable trend, fluctuating between 8.53 and 7.13 before increasing to 8.00 in December 2025. This indicates a consistent ability to meet interest obligations from earnings. The ratio remains above 7.0 throughout the period, suggesting a comfortable margin of safety. The values are relatively consistent, indicating stable earnings relative to interest expense.
In summary, the company’s solvency position generally improved from March 2022 through September 2025, as evidenced by declining debt ratios and stable interest coverage. However, the most recent quarters (March and June 2025) show a slight reversal of these trends, warranting further investigation to determine if this represents a temporary fluctuation or a shift in long-term financial strategy.
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Debt Ratios
Coverage Ratios
Debt to Equity
Union Pacific Corp., debt to equity calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Debt due within one year | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | |||||
| Debt due after one year | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | |||||
| Total debt | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | |||||
| Common shareholders’ equity | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | 1.72 | 1.84 | 2.02 | 2.05 | 1.85 | 1.89 | 1.93 | 2.04 | 2.20 | 2.35 | 2.52 | 2.71 | 2.74 | 2.85 | 2.52 | 2.71 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 0.73 | 0.75 | 0.76 | 0.75 | 0.73 | 0.77 | 0.77 | 0.77 | 0.79 | 0.82 | 0.84 | 0.80 | 0.81 | 0.84 | 0.82 | 0.85 | |||||
| Uber Technologies Inc. | 0.39 | 0.38 | 0.42 | 0.38 | 0.39 | 0.74 | 0.77 | 0.86 | 0.84 | 0.99 | 1.07 | 1.23 | 1.26 | 1.48 | 1.39 | 1.04 | |||||
| United Airlines Holdings Inc. | 1.64 | 1.78 | 2.02 | 2.19 | 2.26 | 2.49 | 2.78 | 3.24 | 3.40 | 3.57 | 4.17 | 4.80 | 4.68 | 6.74 | 8.55 | 9.55 | |||||
| United Parcel Service Inc. | 1.49 | 1.57 | 1.57 | 1.36 | 1.27 | 1.30 | 1.30 | 1.18 | 1.29 | 1.10 | 1.04 | 1.11 | 0.99 | 1.20 | 1.26 | 1.42 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Common shareholders’ equity
= 31,814 ÷ 18,467 = 1.72
2 Click competitor name to see calculations.
The debt to equity ratio for the analyzed period demonstrates a clear downward trend, indicating a strengthening of the company’s financial leverage position over time. Initially, the ratio fluctuated around 2.7, but consistently decreased throughout the observed timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The debt to equity ratio began at 2.71 and experienced a slight decrease to 2.52 before rising again to 2.85. It then moderated to 2.74 by the end of 2022, suggesting some volatility in the balance between debt and equity financing during this period. Total debt remained relatively stable, while equity showed some fluctuation.
- Downward Trend (Mar 31, 2023 – Dec 31, 2024)
- A consistent decline in the debt to equity ratio is evident from March 2023 through December 2024. The ratio decreased from 2.71 to 1.85. This decrease is attributable to a combination of factors: a modest reduction in total debt and, more significantly, consistent growth in common shareholders’ equity. Equity increased from US$12.454 million to US$16.890 million over this period.
- Recent Period (Mar 31, 2025 – Dec 31, 2025)
- The downward trend continued into the first three quarters of 2025, reaching a low of 1.72. A slight increase to 1.84 was observed in the final quarter, potentially due to a minor increase in debt. Equity continued to grow, reaching US$18.467 million by the end of the period, reinforcing the overall improvement in the company’s financial structure.
Overall, the observed pattern suggests a deliberate or opportunistic shift towards increased equity financing and/or effective debt management. The declining ratio indicates reduced financial risk and improved solvency, as the company relies less on debt to finance its assets.
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Debt to Equity (including Operating Lease Liability)
Union Pacific Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Debt due within one year | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | |||||
| Debt due after one year | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | |||||
| Total debt | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | |||||
| Noncurrent operating lease liabilities | 738) | 764) | 831) | 758) | 925) | 934) | 988) | 1,016) | 1,245) | 1,244) | 1,217) | 1,233) | 1,300) | 1,303) | 1,295) | 1,291) | |||||
| Total debt (including operating lease liability) | 32,552) | 32,571) | 33,644) | 33,600) | 32,117) | 32,347) | 32,880) | 32,944) | 33,824) | 34,121) | 34,519) | 35,017) | 34,626) | 34,725) | 33,302) | 33,530) | |||||
| Common shareholders’ equity | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.76 | 1.88 | 2.07 | 2.09 | 1.90 | 1.95 | 1.99 | 2.10 | 2.29 | 2.44 | 2.62 | 2.81 | 2.85 | 2.96 | 2.62 | 2.82 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 1.33 | 1.39 | 1.41 | 1.39 | 1.37 | 1.42 | 1.43 | 1.44 | 1.47 | 1.54 | 1.58 | 1.50 | 1.49 | 1.52 | 1.48 | 1.49 | |||||
| Uber Technologies Inc. | 0.45 | 0.43 | 0.50 | 0.45 | 0.46 | 0.86 | 0.90 | 1.01 | 1.00 | 1.17 | 1.27 | 1.48 | 1.52 | 1.77 | 1.68 | 1.25 | |||||
| United Airlines Holdings Inc. | 2.03 | 2.19 | 2.45 | 2.61 | 2.65 | 2.92 | 3.25 | 3.79 | 3.94 | 4.15 | 4.85 | 5.58 | 5.41 | 7.84 | 9.94 | 11.12 | |||||
| United Parcel Service Inc. | 1.76 | 1.85 | 1.84 | 1.63 | 1.53 | 1.56 | 1.55 | 1.44 | 1.54 | 1.33 | 1.25 | 1.32 | 1.19 | 1.41 | 1.48 | 1.65 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Common shareholders’ equity
= 32,552 ÷ 18,467 = 1.76
2 Click competitor name to see calculations.
The debt to equity ratio, inclusive of operating lease liabilities, demonstrates a consistent downward trend over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio stood at 2.82, indicating a substantial level of debt relative to equity. However, subsequent quarters reveal a progressive decrease in this ratio, culminating in a value of 1.76 by the end of the analyzed timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio fluctuated between 2.62 and 2.96 during this period. While there were quarterly variations, the overall level remained relatively high, suggesting a significant reliance on debt financing. Total debt remained relatively stable, while equity experienced some volatility.
- Downward Trend (Mar 31, 2023 – Dec 31, 2024)
- A more pronounced downward trajectory began in March 2023, with the ratio declining from 2.81 to 1.90 by December 2024. This decrease coincided with increases in common shareholders’ equity and a moderate reduction in total debt, including operating lease liability. The equity increases appear to be the primary driver of the ratio’s decline.
- Recent Period (Mar 31, 2025 – Dec 31, 2025)
- The declining trend continued into the first three quarters of 2025, reaching 1.88 in September. A slight increase to 2.09 was observed in March 2025, but the ratio finished the period at 1.76. This suggests a continued strengthening of the equity position relative to debt obligations. Total debt remained relatively flat during this period, while equity continued to grow.
The consistent reduction in the debt to equity ratio suggests an improving solvency position. The company appears to be decreasing its financial leverage, potentially reducing financial risk and increasing its capacity to absorb future losses. The observed pattern indicates a deliberate or opportunistic shift towards a more balanced capital structure.
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Debt to Capital
Union Pacific Corp., debt to capital calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Debt due within one year | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | |||||
| Debt due after one year | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | |||||
| Total debt | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | |||||
| Common shareholders’ equity | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | |||||
| Total capital | 50,281) | 49,111) | 49,071) | 48,881) | 48,082) | 47,997) | 48,381) | 47,593) | 47,367) | 46,881) | 46,496) | 46,238) | 45,489) | 45,165) | 44,717) | 44,136) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | 0.63 | 0.65 | 0.67 | 0.67 | 0.65 | 0.65 | 0.66 | 0.67 | 0.69 | 0.70 | 0.72 | 0.73 | 0.73 | 0.74 | 0.72 | 0.73 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 0.42 | 0.43 | 0.43 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.46 | 0.44 | 0.45 | 0.46 | 0.45 | 0.46 | |||||
| Uber Technologies Inc. | 0.28 | 0.27 | 0.30 | 0.28 | 0.28 | 0.43 | 0.43 | 0.46 | 0.46 | 0.50 | 0.52 | 0.55 | 0.56 | 0.60 | 0.58 | 0.51 | |||||
| United Airlines Holdings Inc. | 0.62 | 0.64 | 0.67 | 0.69 | 0.69 | 0.71 | 0.74 | 0.76 | 0.77 | 0.78 | 0.81 | 0.83 | 0.82 | 0.87 | 0.90 | 0.91 | |||||
| United Parcel Service Inc. | 0.60 | 0.61 | 0.61 | 0.58 | 0.56 | 0.57 | 0.57 | 0.54 | 0.56 | 0.52 | 0.51 | 0.53 | 0.50 | 0.55 | 0.56 | 0.59 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 31,814 ÷ 50,281 = 0.63
2 Click competitor name to see calculations.
The debt to capital ratio for the analyzed period demonstrates a generally decreasing trend, indicating a strengthening capital structure over time. Initial values fluctuate around 0.73 before exhibiting a more consistent decline. This suggests a relative reduction in the company’s reliance on debt financing compared to its total capital base.
- Overall Trend
- From March 31, 2022, to December 31, 2025, the debt to capital ratio decreased from 0.73 to 0.63. This represents a 13.7% reduction over the observed period. The most significant declines occurred between September 30, 2022, and December 31, 2023, and again between September 30, 2024, and December 31, 2025.
- Short-Term Fluctuations
- While the overall trend is downward, some quarterly variations are present. A slight increase is observed from June 30, 2022, to September 30, 2022, followed by a stabilization through the end of 2022. A minor increase is also noted from March 31, 2025, to June 30, 2025, before resuming the downward trajectory.
- Debt and Capital Movements
- Total debt generally remained stable between March 2022 and September 2023, with fluctuations within a relatively narrow range. A consistent decrease in total debt is then observed from December 31, 2023, through December 31, 2025. Total capital consistently increased throughout the period, contributing to the declining debt to capital ratio. The rate of increase in total capital accelerated from March 31, 2024, onwards.
The observed trend suggests improved financial leverage and a potentially lower risk profile. The consistent increase in total capital, coupled with the recent decrease in total debt, indicates a strengthening financial position. Continued monitoring of these ratios is recommended to assess the sustainability of this trend.
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Debt to Capital (including Operating Lease Liability)
Union Pacific Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Debt due within one year | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | |||||
| Debt due after one year | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | |||||
| Total debt | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | |||||
| Noncurrent operating lease liabilities | 738) | 764) | 831) | 758) | 925) | 934) | 988) | 1,016) | 1,245) | 1,244) | 1,217) | 1,233) | 1,300) | 1,303) | 1,295) | 1,291) | |||||
| Total debt (including operating lease liability) | 32,552) | 32,571) | 33,644) | 33,600) | 32,117) | 32,347) | 32,880) | 32,944) | 33,824) | 34,121) | 34,519) | 35,017) | 34,626) | 34,725) | 33,302) | 33,530) | |||||
| Common shareholders’ equity | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | |||||
| Total capital (including operating lease liability) | 51,019) | 49,875) | 49,902) | 49,639) | 49,007) | 48,931) | 49,369) | 48,609) | 48,612) | 48,125) | 47,713) | 47,471) | 46,789) | 46,468) | 46,012) | 45,427) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.64 | 0.65 | 0.67 | 0.68 | 0.66 | 0.66 | 0.67 | 0.68 | 0.70 | 0.71 | 0.72 | 0.74 | 0.74 | 0.75 | 0.72 | 0.74 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 0.57 | 0.58 | 0.58 | 0.58 | 0.58 | 0.59 | 0.59 | 0.59 | 0.60 | 0.61 | 0.61 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | |||||
| Uber Technologies Inc. | 0.31 | 0.30 | 0.33 | 0.31 | 0.32 | 0.46 | 0.47 | 0.50 | 0.50 | 0.54 | 0.56 | 0.60 | 0.60 | 0.64 | 0.63 | 0.56 | |||||
| United Airlines Holdings Inc. | 0.67 | 0.69 | 0.71 | 0.72 | 0.73 | 0.74 | 0.76 | 0.79 | 0.80 | 0.81 | 0.83 | 0.85 | 0.84 | 0.89 | 0.91 | 0.92 | |||||
| United Parcel Service Inc. | 0.64 | 0.65 | 0.65 | 0.62 | 0.61 | 0.61 | 0.61 | 0.59 | 0.61 | 0.57 | 0.56 | 0.57 | 0.54 | 0.58 | 0.60 | 0.62 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 32,552 ÷ 51,019 = 0.64
2 Click competitor name to see calculations.
The debt to capital ratio, inclusive of operating lease liabilities, for the analyzed period demonstrates a generally decreasing trend. Initially, the ratio fluctuated around 0.74 and 0.72 between March 2022 and June 2023. Subsequently, a consistent downward trajectory is observed, culminating in a ratio of 0.64 by December 2025.
- Overall Trend
- A clear declining trend in the debt to capital ratio is evident throughout the period. The ratio decreased from 0.74 in March 2022 to 0.64 in December 2025, representing a reduction of approximately 13.5%. This suggests a strengthening of the company’s capital structure over time, with a decreasing reliance on debt financing relative to equity and other capital sources.
- Short-Term Fluctuations (2022-2023)
- Between March 2022 and June 2023, the ratio exhibited minor fluctuations, oscillating between 0.72 and 0.75. This period showed relative stability, with no significant increase or decrease in the proportion of debt to capital. The ratio peaked at 0.75 in September 2022 before returning to 0.72 in June 2023.
- Consistent Decline (2023-2025)
- From September 2023 onwards, the ratio consistently decreased each quarter. The decline, while gradual, was uninterrupted, moving from 0.71 to 0.64 over the subsequent nine quarters. This consistent reduction indicates a deliberate or responsive strategy to reduce leverage.
- Magnitude of Change
- The largest single-quarter decrease occurred between September 2024 and December 2024, with a reduction of 0.01. However, the overall trend demonstrates a steady and consistent reduction in the ratio, rather than being driven by isolated events.
The observed trend suggests improving solvency, as the company is financing a smaller proportion of its assets with debt. This could be due to increased profitability leading to retained earnings, equity issuances, or active debt reduction strategies.
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Debt to Assets
Union Pacific Corp., debt to assets calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Debt due within one year | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | |||||
| Debt due after one year | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | |||||
| Total debt | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | |||||
| Total assets | 69,698) | 68,647) | 68,576) | 68,492) | 67,715) | 67,570) | 67,817) | 67,266) | 67,132) | 66,540) | 66,033) | 65,968) | 65,449) | 65,343) | 64,440) | 64,051) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | 0.46 | 0.46 | 0.48 | 0.48 | 0.46 | 0.46 | 0.47 | 0.47 | 0.49 | 0.49 | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 0.23 | 0.24 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | |||||
| Uber Technologies Inc. | 0.17 | 0.17 | 0.17 | 0.16 | 0.16 | 0.23 | 0.23 | 0.24 | 0.24 | 0.26 | 0.27 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | |||||
| United Airlines Holdings Inc. | 0.33 | 0.33 | 0.35 | 0.36 | 0.39 | 0.39 | 0.40 | 0.41 | 0.45 | 0.43 | 0.44 | 0.45 | 0.48 | 0.48 | 0.48 | 0.50 | |||||
| United Parcel Service Inc. | 0.33 | 0.35 | 0.35 | 0.31 | 0.30 | 0.32 | 0.32 | 0.30 | 0.31 | 0.30 | 0.30 | 0.31 | 0.28 | 0.29 | 0.29 | 0.31 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 31,814 ÷ 69,698 = 0.46
2 Click competitor name to see calculations.
The debt-to-assets ratio for the analyzed period demonstrates a generally decreasing trend, indicating a strengthening solvency position. Initially, the ratio remained stable before exhibiting a slight decline towards the end of the observed timeframe.
- Overall Trend
- The debt-to-assets ratio began at 0.50 in March 2022 and remained at that level through June 2022. A slight increase was observed in the subsequent two quarters, reaching 0.51 by December 2022. From March 2023 through September 2024, the ratio generally decreased, falling to 0.46. A minor increase to 0.48 was noted in March 2025, followed by a return to 0.46 by December 2025.
- Short-Term Fluctuations
- While the overall trend is downward, there are minor fluctuations. The ratio peaked at 0.51 twice, in September 2022 and December 2022. The lowest point was reached in September 2024, at 0.46. These fluctuations suggest potential shifts in the company’s capital structure or asset base during those specific periods.
- Recent Performance
- The most recent quarters show relative stability. The ratio moved from 0.46 in September 2025 to 0.46 in December 2025, suggesting a stabilization of the company’s debt relative to its assets. This could indicate a deliberate strategy to maintain a consistent financial leverage profile.
- Magnitude of Change
- The total change in the debt-to-assets ratio over the analyzed period is 0.04, decreasing from 0.50 to 0.46. This represents a 8% reduction in the proportion of assets financed by debt, which is a notable improvement in the company’s solvency.
In conclusion, the observed trend suggests a gradual reduction in financial risk associated with debt levels relative to the asset base. The recent stabilization indicates a potential focus on maintaining a consistent capital structure.
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Debt to Assets (including Operating Lease Liability)
Union Pacific Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Debt due within one year | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | |||||
| Debt due after one year | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | |||||
| Total debt | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | |||||
| Noncurrent operating lease liabilities | 738) | 764) | 831) | 758) | 925) | 934) | 988) | 1,016) | 1,245) | 1,244) | 1,217) | 1,233) | 1,300) | 1,303) | 1,295) | 1,291) | |||||
| Total debt (including operating lease liability) | 32,552) | 32,571) | 33,644) | 33,600) | 32,117) | 32,347) | 32,880) | 32,944) | 33,824) | 34,121) | 34,519) | 35,017) | 34,626) | 34,725) | 33,302) | 33,530) | |||||
| Total assets | 69,698) | 68,647) | 68,576) | 68,492) | 67,715) | 67,570) | 67,817) | 67,266) | 67,132) | 66,540) | 66,033) | 65,968) | 65,449) | 65,343) | 64,440) | 64,051) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.47 | 0.47 | 0.49 | 0.49 | 0.47 | 0.48 | 0.48 | 0.49 | 0.50 | 0.51 | 0.52 | 0.53 | 0.53 | 0.53 | 0.52 | 0.52 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 0.43 | 0.44 | 0.44 | 0.44 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | |||||
| Uber Technologies Inc. | 0.20 | 0.19 | 0.20 | 0.19 | 0.19 | 0.27 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.34 | 0.35 | 0.36 | 0.36 | 0.34 | |||||
| United Airlines Holdings Inc. | 0.41 | 0.41 | 0.42 | 0.43 | 0.45 | 0.46 | 0.47 | 0.48 | 0.52 | 0.50 | 0.51 | 0.53 | 0.55 | 0.56 | 0.56 | 0.58 | |||||
| United Parcel Service Inc. | 0.39 | 0.41 | 0.41 | 0.37 | 0.37 | 0.38 | 0.38 | 0.36 | 0.38 | 0.36 | 0.36 | 0.37 | 0.33 | 0.34 | 0.34 | 0.36 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 32,552 ÷ 69,698 = 0.47
2 Click competitor name to see calculations.
The debt to assets ratio, including operating lease liabilities, for the analyzed period demonstrates a generally decreasing trend. Initially, the ratio remained stable at 0.52 for the first two quarters of 2022. A slight increase was observed in the third quarter of 2022, reaching 0.53, before stabilizing again in the final quarter of the same year. This trend continued into 2023, with a gradual decline throughout the year, moving from 0.53 in the first quarter to 0.50 by the end of the year.
The downward trend persisted into 2024, with the ratio decreasing to 0.48 in the second quarter and remaining at that level through the third quarter. A further decrease to 0.47 was recorded in the fourth quarter of 2024. The first half of 2025 showed some fluctuation, with a slight increase to 0.49 in the first quarter, followed by a decrease to 0.47 in the second quarter, and a final value of 0.47 at the end of the analyzed period.
- Overall Trend
- The overall trend indicates a strengthening solvency position, as the proportion of assets financed by debt has decreased over the observed period. The ratio decreased from 0.52 at the beginning of the period to 0.47 at the end.
- Rate of Change
- The most significant rate of decline occurred between the first and fourth quarters of 2023, and the first and second quarters of 2024. The rate of change appears to have slowed in the latter half of 2024 and the first half of 2025, suggesting a stabilization of the debt structure relative to asset growth.
- Stability
- Periods of relative stability were observed in early 2022 and in the second and third quarters of 2024, indicating periods where debt and asset levels grew proportionally or remained constant.
The consistent decrease in the debt to assets ratio suggests that the company has been effectively managing its debt levels relative to its asset base, potentially through debt reduction or asset growth. The observed fluctuations, while present, do not significantly alter the overall downward trajectory.
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Financial Leverage
Union Pacific Corp., financial leverage calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Total assets | 69,698) | 68,647) | 68,576) | 68,492) | 67,715) | 67,570) | 67,817) | 67,266) | 67,132) | 66,540) | 66,033) | 65,968) | 65,449) | 65,343) | 64,440) | 64,051) | |||||
| Common shareholders’ equity | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | 3.77 | 3.97 | 4.22 | 4.27 | 4.01 | 4.07 | 4.11 | 4.29 | 4.54 | 4.75 | 5.00 | 5.30 | 5.38 | 5.56 | 5.07 | 5.38 | |||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 3.12 | 3.18 | 3.23 | 3.19 | 3.15 | 3.26 | 3.29 | 3.30 | 3.34 | 3.47 | 3.55 | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | |||||
| Uber Technologies Inc. | 2.29 | 2.25 | 2.48 | 2.40 | 2.38 | 3.19 | 3.36 | 3.58 | 3.44 | 3.84 | 3.93 | 4.32 | 4.37 | 4.98 | 4.66 | 3.68 | |||||
| United Airlines Holdings Inc. | 5.00 | 5.33 | 5.77 | 6.03 | 5.84 | 6.35 | 6.96 | 7.83 | 7.63 | 8.26 | 9.52 | 10.56 | 9.77 | 14.08 | 17.76 | 19.05 | |||||
| United Parcel Service Inc. | 4.50 | 4.51 | 4.50 | 4.37 | 4.19 | 4.05 | 4.08 | 4.00 | 4.09 | 3.67 | 3.51 | 3.60 | 3.59 | 4.10 | 4.30 | 4.55 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Common shareholders’ equity
= 69,698 ÷ 18,467 = 3.77
2 Click competitor name to see calculations.
Financial leverage, as indicated by the ratio of total assets to common shareholders’ equity, demonstrates a consistent downward trend over the observed period spanning from March 31, 2022, to December 31, 2025. Initially, the ratio stood at 5.38, and has decreased to 3.77 by the end of the analyzed timeframe. This suggests a decreasing reliance on financial leverage to finance assets.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The financial leverage ratio fluctuated between 5.07 and 5.56 during this period. While there were quarterly variations, the ratio remained relatively stable, indicating a consistent level of financial leverage. A slight decrease is observed from 5.38 to 5.38, followed by a minor increase to 5.56, and then a return to 5.38.
- Downward Trend (Mar 31, 2023 – Dec 31, 2025)
- From March 31, 2023, a clear and consistent downward trend in the financial leverage ratio is evident. The ratio decreased from 5.30 to 3.77 over the course of ten quarters. This decline suggests an increasing proportion of assets are financed by equity rather than debt, or a reduction in total assets relative to equity.
- Rate of Decline
- The rate of decline appears to be accelerating. The initial decrease from 5.30 to 4.54 (over four quarters) represents a reduction of approximately 0.76. However, the subsequent decrease from 4.29 to 3.77 (over eight quarters) represents a reduction of 0.52. While the rate isn't strictly linear, the later declines are proportionally larger given the smaller base.
The consistent decrease in financial leverage suggests a strengthening of the company’s financial position, potentially reducing financial risk and increasing its capacity to absorb losses. Further investigation into the drivers of this trend, such as changes in debt levels, equity issuance, or asset composition, would provide a more comprehensive understanding.
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Interest Coverage
Union Pacific Corp., interest coverage calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | 1,848) | 1,788) | 1,876) | 1,626) | 1,762) | 1,671) | 1,673) | 1,641) | 1,652) | 1,528) | 1,569) | 1,630) | 1,638) | 1,895) | 1,835) | 1,630) | |||||
| Add: Income tax expense | 560) | 530) | 437) | 501) | 519) | 518) | 511) | 499) | 532) | 421) | 389) | 512) | 533) | 547) | 507) | 487) | |||||
| Add: Interest expense | 325) | 327) | 335) | 322) | 312) | 314) | 319) | 324) | 331) | 334) | 339) | 336) | 333) | 315) | 316) | 307) | |||||
| Earnings before interest and tax (EBIT) | 2,733) | 2,645) | 2,648) | 2,449) | 2,593) | 2,503) | 2,503) | 2,464) | 2,515) | 2,283) | 2,297) | 2,478) | 2,504) | 2,757) | 2,658) | 2,424) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Interest coverage1 | 8.00 | 7.97 | 7.94 | 7.93 | 7.93 | 7.75 | 7.47 | 7.20 | 7.14 | 7.13 | 7.59 | 8.00 | 8.14 | 8.40 | 8.34 | 8.53 | |||||
| Benchmarks | |||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||
| Uber Technologies Inc. | 14.06 | 15.41 | 14.78 | 13.09 | 8.81 | 9.95 | 5.18 | 4.12 | 4.74 | 2.67 | 0.55 | -4.42 | -15.49 | -15.64 | -19.05 | -13.64 | |||||
| United Airlines Holdings Inc. | 4.69 | 4.54 | 4.43 | 4.65 | 3.97 | 3.40 | 3.34 | 3.02 | 2.91 | 3.09 | 2.92 | 2.44 | 1.59 | 0.40 | 0.06 | -0.56 | |||||
| United Parcel Service Inc. | 8.04 | 8.06 | 8.86 | 9.32 | 9.59 | 9.74 | 9.29 | 10.58 | 11.92 | 15.44 | 18.59 | 20.44 | 22.06 | 21.60 | 21.21 | 20.95 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= (2,733 + 2,645 + 2,648 + 2,449)
÷ (325 + 327 + 335 + 322)
= 8.00
2 Click competitor name to see calculations.
The interest coverage ratio for the analyzed period demonstrates a generally stable, though slightly declining, trend followed by a modest recovery. Initial values indicate a strong ability to meet interest obligations, which gradually diminishes before stabilizing and then improving towards the end of the observed timeframe.
- Overall Trend
- The interest coverage ratio began at 8.53 and experienced a gradual decline through the first three quarters of 2023, reaching a low of 7.13. Subsequently, the ratio stabilized and began a slow upward trend, culminating in a value of 8.00 by the end of 2025. This suggests a period of increasing financial risk followed by a strengthening of the company’s capacity to cover its interest expense.
- Initial Decline (Q1 2022 - Q3 2023)
- From March 31, 2022, to September 30, 2023, the ratio decreased from 8.53 to 7.13. This decline occurred despite relatively stable earnings before interest and tax (EBIT), indicating an increase in interest expense as the primary driver. While the decrease is not drastic, it warrants attention as it signifies a reduced margin of safety for creditors.
- Stabilization and Recovery (Q4 2023 - Q4 2025)
- Following the low in September 2023, the interest coverage ratio exhibited a pattern of stabilization and modest improvement. By December 2025, the ratio reached 8.00. This recovery appears to be driven by a combination of slightly increasing EBIT and relatively stable interest expense. The improvement suggests a strengthening financial position and a reduced risk of potential default.
- Quarterly Fluctuations
- Within the overall trends, some quarterly fluctuations are observed. For example, a slight increase is noted between September 30, 2024 (7.75) and December 31, 2024 (7.93), and again between March 31, 2025 (7.93) and June 30, 2025 (7.94). These fluctuations are relatively small and do not significantly alter the overall trend.
In conclusion, the interest coverage ratio indicates a generally healthy, though fluctuating, ability to meet interest obligations. The initial decline raised a minor concern, but the subsequent stabilization and recovery suggest a strengthening financial position.
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