Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
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Long-term Activity Ratios (Summary)
Union Pacific Corp., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net fixed asset turnover
- The net fixed asset turnover ratio exhibited a consistent upward trend from 0.36 in 2020 to a peak of 0.44 in 2022, indicating improved efficiency in using fixed assets to generate sales during this period. However, it slightly declined to 0.42 in both 2023 and 2024, suggesting a modest reduction in asset utilization efficiency or a stabilization after previous growth.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This metric followed a similar pattern to the net fixed asset turnover, starting at 0.35 in 2020 and rising steadily to 0.43 in 2022. Subsequently, it decreased marginally to 0.41 in 2023 and remained stable through 2024. This consistency with the net fixed asset turnover suggests that including operating leases and right-of-use assets does not significantly alter the overall asset efficiency trend.
- Total asset turnover
- Total asset turnover increased from 0.31 in 2020 to 0.38 in 2022, indicating enhanced effectiveness in utilizing all assets to generate revenue during these years. Similar to net fixed asset turnover, the ratio saw a slight decline to 0.36 for 2023 and 2024, pointing toward a possible plateau or a marginal decrease in asset utilization efficiency.
- Equity turnover
- Equity turnover demonstrated substantial volatility. It rose sharply from 1.15 in 2020 to a high of 2.05 in 2022, reflecting a significant increase in sales relative to shareholders' equity, which may suggest increased leverage or improved equity efficiency. However, the ratio fell to 1.63 in 2023 and further to 1.44 in 2024, indicating a reversal of this trend and a notable decline in equity efficiency over the last two years.
Net Fixed Asset Turnover
Union Pacific Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | ||||||
| Properties, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Transportation | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Operating revenues ÷ Properties, net
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenues
- Operating revenues show a generally increasing trend from 2020 to 2024. There was a noticeable increase from 19,533 million USD in 2020 to 24,875 million USD in 2022. However, a slight decline occurred in 2023, with revenues falling to 24,119 million USD before stabilizing somewhat in 2024 at 24,250 million USD. This pattern suggests robust growth initially, followed by a minor contraction and plateau in the most recent years.
- Properties, Net
- Properties, net exhibit a steady upward trend over the five-year period. The value increased consistently from 54,161 million USD in 2020 to 58,343 million USD in 2024. This indicates continuous investment or appreciation in fixed assets, reflecting expansion or sustained capital expenditure in property holdings.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio rose from 0.36 in 2020 to a peak of 0.44 in 2022, indicating improved efficiency in generating revenues from fixed assets during this time. Subsequently, the ratio decreased slightly to 0.42 in 2023 and remained stable in 2024. The initial improvement suggests better utilization or productivity of fixed assets, but the slight decline and stabilization could point to a plateau in asset usage efficiency.
- Summary
- The data reflects a company experiencing growth in revenues and property assets over the five years analyzed. While operating revenues increased significantly until 2022, a modest downturn occurred afterward, contrasting with the continuous rise in property values. The net fixed asset turnover ratio's peak in 2022 followed by a minor decline suggests the highest asset utilization efficiency was achieved around that time, with recent years maintaining that level without further improvement. These trends collectively imply a phase of expansion with some recent challenges in revenue growth relative to asset base expansion.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Union Pacific Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | ||||||
| Properties, net | ||||||
| Operating lease assets | ||||||
| Properties, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Transportation | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenues ÷ Properties, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenues
- The operating revenues demonstrated a steady upward trend from 2020 to 2022, starting at 19,533 million USD in 2020 and increasing to 24,875 million USD in 2022. However, a decline occurred in 2023 with revenues dropping slightly to 24,119 million USD, followed by a marginal recovery to 24,250 million USD in 2024. This indicates initial growth momentum that slowed down and stabilized in the latter years.
- Properties, Net
- The net properties value showed continuous growth over the five-year period, starting from 55,771 million USD in 2020 and increasing consistently each year to reach 59,640 million USD in 2024. This steady rise suggests ongoing investment or asset accumulation in properties and equipment.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency of asset use to generate revenue, improved from 0.35 in 2020 to a peak of 0.43 in 2022. Following this peak, the ratio declined slightly to 0.41 in both 2023 and 2024. This pattern indicates an initial improvement in asset utilization efficiency, which then stabilized at a slightly lower level in the most recent years.
- Overall Analysis
- The data reveals a phase of growth in operating revenues accompanied by increasing investments in property assets. While fixed asset turnover improved initially, suggesting enhanced efficiency in using the asset base to generate revenues, a slight downturn in both revenue growth and turnover ratio after 2022 points to potential challenges or market changes impacting operational performance. The consistent increase in net properties alongside a flattening fixed asset turnover ratio may imply that asset growth outpaced revenue generation efficiency in recent periods.
Total Asset Turnover
Union Pacific Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Transportation | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Operating revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The data reveals several notable trends in the financial performance and position over the analyzed periods.
- Operating Revenues
- Operating revenues exhibited a general upward trend from US$19,533 million in 2020 to US$24,250 million in 2024. There was a marked increase from 2020 to 2022, peaking at US$24,875 million in 2022, followed by a slight decline in 2023, and a modest recovery in 2024. This pattern suggests growth in core business activities with minor fluctuations possibly influenced by market or operational conditions in 2023.
- Total Assets
- Total assets showed a steady increase from US$62,398 million in 2020 to US$67,715 million in 2024. The growth was consistent year-over-year, indicating ongoing investment or accumulation of assets which may support future revenue growth or reflect inflationary pressures on asset values.
- Total Asset Turnover
- Total asset turnover improved from 0.31 in 2020 to a peak of 0.38 in 2022, then slightly declined and stabilized at 0.36 in 2023 and 2024. The initial improvement suggests increased efficiency in using assets to generate revenue, while the subsequent leveling indicates maintenance of efficiency despite the asset base expansion.
Overall, the company experienced growth in revenues and asset base over the period analyzed, with efficiency metrics showing initial improvement followed by stabilization. This pattern points to effective asset utilization and steady financial growth with minor fluctuations in operating performance in the later years.
Equity Turnover
Union Pacific Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | ||||||
| Common shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Transportation | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Operating revenues ÷ Common shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
Over the analyzed period, operating revenues displayed an overall upward trend, increasing from 19,533 million USD at the end of 2020 to 24,250 million USD by the end of 2024. The revenues peaked in 2022 at 24,875 million USD, then experienced a slight decline in 2023 before stabilizing in 2024.
Common shareholders’ equity exhibited a different trajectory, showing a decline from 16,958 million USD in 2020 to a low of 12,163 million USD in 2022. After this dip, equity gradually recovered, reaching 16,890 million USD by the close of 2024, nearly returning to the 2020 level.
The equity turnover ratio rose substantially from 1.15 in 2020 to a peak of 2.05 in 2022, indicating a higher efficiency in generating revenue from shareholders’ equity during this period. However, from 2022 onwards, the ratio declined to 1.44 in 2024, suggesting a reduction in equity utilization efficiency compared to the peak year, but still above the initial 2020 level.
- Summary of key trends
- Operating revenues showed consistent growth with a slight dip after 2022 but remained strong overall.
- Common shareholders’ equity decreased significantly until 2022, then recovered steadily in subsequent years.
- Equity turnover peaked in 2022, reflecting optimal asset utilization at that time, followed by a decline, though remaining elevated relative to 2020.
These patterns suggest a period of expansion in revenue generation with fluctuations in equity levels and efficiency of equity use contributing to the company's financial dynamics.