Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Union Pacific Corp., profitability ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Union Pacific Corp. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Union Pacific Corp. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Union Pacific Corp. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Union Pacific Corp. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Operating Profit Margin
Union Pacific Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 9,082) | 9,917) | 9,338) | 7,834) | 8,554) | |
| Operating revenues | 24,119) | 24,875) | 21,804) | 19,533) | 21,708) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 37.65% | 39.87% | 42.83% | 40.11% | 39.40% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 5.45% | 6.68% | 6.98% | 3.49% | 6.41% | |
| Uber Technologies Inc. | 2.98% | -5.75% | -21.97% | -43.66% | -60.76% | |
| United Parcel Service Inc. | 10.05% | 13.05% | 13.17% | 9.08% | 10.52% | |
| Operating Profit Margin, Sector | ||||||
| Transportation | 10.00% | 10.94% | 10.96% | 7.08% | 6.80% | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 10.07% | 9.34% | 9.80% | 4.43% | 9.67% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Operating revenues
= 100 × 9,082 ÷ 24,119 = 37.65%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Union Pacific Corp. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Union Pacific Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,379) | 6,998) | 6,523) | 5,349) | 5,919) | |
| Operating revenues | 24,119) | 24,875) | 21,804) | 19,533) | 21,708) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 26.45% | 28.13% | 29.92% | 27.38% | 27.27% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 4.41% | 4.09% | 6.23% | 1.86% | 0.77% | |
| Uber Technologies Inc. | 5.06% | -28.68% | -2.84% | -60.76% | -60.13% | |
| United Parcel Service Inc. | 7.37% | 11.51% | 13.25% | 1.59% | 5.99% | |
| Net Profit Margin, Sector | ||||||
| Transportation | 7.81% | 5.28% | 10.95% | 0.66% | 1.33% | |
| Net Profit Margin, Industry | ||||||
| Industrials | 8.61% | 5.27% | 6.43% | 1.43% | 3.90% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net profit margin = 100 × Net income ÷ Operating revenues
= 100 × 6,379 ÷ 24,119 = 26.45%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Union Pacific Corp. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Union Pacific Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,379) | 6,998) | 6,523) | 5,349) | 5,919) | |
| Common shareholders’ equity | 14,788) | 12,163) | 14,161) | 16,958) | 18,128) | |
| Profitability Ratio | ||||||
| ROE1 | 43.14% | 57.54% | 46.06% | 31.54% | 32.65% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| FedEx Corp. | 15.23% | 15.34% | 21.64% | 7.03% | 3.04% | |
| Uber Technologies Inc. | 16.77% | -124.54% | -3.43% | -55.18% | -59.94% | |
| United Parcel Service Inc. | 38.76% | 58.36% | 90.44% | 204.41% | 135.90% | |
| ROE, Sector | ||||||
| Transportation | 27.29% | 20.60% | 36.02% | 2.51% | 4.49% | |
| ROE, Industry | ||||||
| Industrials | 27.68% | 15.53% | 16.58% | 3.94% | 13.76% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROE = 100 × Net income ÷ Common shareholders’ equity
= 100 × 6,379 ÷ 14,788 = 43.14%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Union Pacific Corp. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Return on Assets (ROA)
Union Pacific Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,379) | 6,998) | 6,523) | 5,349) | 5,919) | |
| Total assets | 67,132) | 65,449) | 63,525) | 62,398) | 61,673) | |
| Profitability Ratio | ||||||
| ROA1 | 9.50% | 10.69% | 10.27% | 8.57% | 9.60% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| FedEx Corp. | 4.56% | 4.45% | 6.32% | 1.75% | 0.99% | |
| Uber Technologies Inc. | 4.88% | -28.47% | -1.28% | -20.35% | -26.78% | |
| United Parcel Service Inc. | 9.47% | 16.24% | 18.57% | 2.15% | 7.67% | |
| ROA, Sector | ||||||
| Transportation | 7.18% | 5.20% | 9.49% | 0.52% | 1.16% | |
| ROA, Industry | ||||||
| Industrials | 5.75% | 3.46% | 3.83% | 0.74% | 2.39% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 6,379 ÷ 67,132 = 9.50%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Union Pacific Corp. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |