Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
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Profitability Ratios (Summary)
Union Pacific Corp., profitability 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).
The profitability metrics exhibited varied trends over the observed period. Generally, operating and net profit margins demonstrated a declining trend from early 2022 through late 2023, followed by a period of stabilization and modest improvement into early 2025. Return on equity (ROE) showed a more pronounced decline, while return on assets (ROA) remained relatively stable, albeit with a slight downward trajectory.
- Operating Profit Margin
- The operating profit margin began at 42.90% in March 2022 and decreased to a low of 37.64% in September 2022, before stabilizing around 38-39% through the end of 2023. A gradual increase was then observed, reaching 40.62% in September 2025, indicating improved operational efficiency or pricing power in recent periods. The overall trend suggests a period of margin compression followed by recovery.
- Net Profit Margin
- Similar to the operating profit margin, the net profit margin experienced a decline from 30.06% in March 2022 to 26.37% in September 2022. It then plateaued around 26-27% until the end of 2023. A consistent upward trend emerged in 2024 and 2025, culminating in 29.12% in December 2025. This suggests improved profitability after accounting for all expenses, including interest and taxes.
- Return on Equity (ROE)
- ROE demonstrated a significant decrease over the period. Starting at 57.26% in March 2022, it fell to 43.14% by December 2023. While a slight recovery occurred in early 2024, reaching 42.66% in June 2025, it remained considerably lower than the initial value. This decline indicates a diminishing ability to generate profits from shareholder investments.
- Return on Assets (ROA)
- ROA exhibited greater stability compared to other metrics. It fluctuated between 10.61% and 10.82% in the initial period, then gradually decreased to 9.50% by December 2023. A modest recovery followed, reaching 10.24% in December 2025. The relative stability suggests consistent asset utilization, although the slight decline warrants monitoring.
In summary, the observed trends suggest a period of profitability challenges followed by a recovery in operating and net profit margins. However, ROE experienced a more substantial and sustained decline, potentially indicating issues with equity utilization. ROA remained relatively stable, providing a degree of consistency in asset performance.
Return on Sales
Return on Investment
Operating Profit Margin
Union Pacific Corp., operating profit margin 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) | |||||||||||||||||||||
| Operating income | |||||||||||||||||||||
| Operating revenues | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||
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
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (Operating revenuesQ4 2025
+ Operating revenuesQ3 2025
+ Operating revenuesQ2 2025
+ Operating revenuesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally declining trend from the first quarter of 2022 through the third quarter of 2023, followed by a period of stabilization and modest growth through the first half of 2025. While fluctuations occurred, the overall pattern suggests evolving operational efficiency or pricing dynamics impacting profitability.
- Initial Decline (Q1 2022 - Q3 2023)
- The operating profit margin decreased from 42.90% in March 2022 to 37.64% in September 2023. This represents a cumulative decrease of approximately 5.26 percentage points over this period. The most significant decline occurred between June and September 2022, and again between March and June 2023. This suggests potential increases in operating costs or downward pressure on revenue during those specific quarters.
- Stabilization and Growth (Q4 2023 - Q2 2025)
- Beginning in December 2023, the operating profit margin demonstrated a period of stabilization and subsequent growth. It increased from 37.65% to 40.62% by June 2025. This indicates a potential improvement in cost management, increased pricing power, or a shift in revenue mix. The largest increase within this period occurred between September 2024 and March 2025.
- Recent Performance (Q1 2024 - Q2 2025)
- The operating profit margin has remained relatively stable between 38.02% and 40.62% over the last five quarters. This suggests a consistent level of profitability, although the margin has not surpassed the levels observed in the first quarter of 2022. The margin in June 2025 (40.33%) is slightly lower than the peak in September 2025 (40.62%), indicating a potential minor fluctuation.
- Overall Trend
- Despite the recent improvements, the operating profit margin in the most recent period (June 2025) remains below the initial value recorded in March 2022. This suggests that while operational performance has recovered from the lows experienced in 2023, it has not fully returned to its earlier levels. Further investigation into the underlying drivers of these changes would be beneficial.
Net Profit Margin
Union Pacific Corp., net profit margin 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 | |||||||||||||||||||||
| Operating revenues | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||
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
Net profit margin = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ (Operating revenuesQ4 2025
+ Operating revenuesQ3 2025
+ Operating revenuesQ2 2025
+ Operating revenuesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited a generally decreasing trend from the first quarter of 2022 through the third quarter of 2023, followed by a period of stabilization and subsequent increase through the end of the first quarter of 2025. Initial values were relatively high, but experienced a gradual decline before recovering.
- Overall Trend
- The net profit margin began at 30.06% in March 2022. It decreased consistently over the subsequent quarters, reaching a low of 26.37% in September 2023. From this point, the margin began to recover, increasing to 29.12% by December 2025. This indicates a period of profitability compression followed by a return to stronger performance.
- Short-Term Fluctuations
- While the overall trend is clear, there were minor fluctuations within the period. For example, a slight increase was observed from June 30, 2022 (29.23%) to September 30, 2022 (28.95%), despite the overarching downward trajectory. Similarly, a small dip occurred between December 31, 2023 (26.45%) and March 31, 2024 (26.52%).
- Recent Performance
- The most recent quarters demonstrate a positive shift. The net profit margin increased from 27.77% in March 2025 to 28.43% in June 2025, and further to 28.73% in September 2025, culminating in 29.12% in December 2025. This suggests improving efficiency or pricing power in the latter part of the observed period.
- Magnitude of Change
- The largest single-quarter decrease occurred between March 31, 2022, and December 31, 2022, representing a decline of 1.93 percentage points. The largest single-quarter increase occurred between September 30, 2024, and December 31, 2025, representing an increase of 1.30 percentage points.
The observed changes in net profit margin warrant further investigation into the underlying drivers, such as cost of goods sold, operating expenses, and revenue growth. The recent upward trend is encouraging, but continued monitoring is necessary to determine if this represents a sustained improvement in profitability.
Return on Equity (ROE)
Union Pacific Corp., ROE 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 | |||||||||||||||||||||
| Common shareholders’ equity | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||
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
ROE = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Common shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ROE demonstrated strength, followed by a consistent decline, and then a period of stabilization with some renewed increases towards the end of the timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ROE began at 57.26% in March 2022, experienced a slight decrease to 53.89% in June 2022, then increased to a peak of 60.21% in September 2022 before settling at 57.54% by the end of the year. This initial period suggests a robust ability to generate profit from shareholder investments.
- Downward Trend (Mar 31, 2023 – Dec 31, 2023)
- A clear downward trend emerged in 2023. The ROE decreased from 56.19% in March to 51.02% in June, continuing to 45.45% in September, and reaching 43.14% by December. This decline indicates a diminishing return on shareholder equity during this period, potentially due to increasing equity or decreasing net income.
- Stabilization and Slight Recovery (Mar 31, 2024 – Jun 30, 2025)
- The decline in ROE appeared to stabilize in 2024, fluctuating between 39.38% and 42.66%. While not returning to the levels seen in 2022, the ROE showed a modest recovery, increasing from 38.65% in December 2024 to 42.66% in June 2025. This suggests a potential stabilization of profitability relative to equity.
- Net Income and Equity Relationship
- The observed ROE trends correlate with movements in both net income and common shareholders’ equity. While net income remained relatively stable overall, common shareholders’ equity consistently increased throughout the period. The increasing equity base, coupled with relatively flat net income, likely contributed to the observed decline in ROE, as the same level of profit was distributed across a larger equity base.
In conclusion, the ROE experienced a period of initial strength, followed by a notable decline, and then a period of stabilization with some recovery. The increasing equity base appears to have been a significant factor influencing the ROE trend.
Return on Assets (ROA)
Union Pacific Corp., ROA 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 | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||
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
ROA = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a generally stable pattern over the observed period, with some fluctuations. Initially, the ROA demonstrated consistency, hovering around 10.6% to 10.8% from the first quarter of 2022 through the first quarter of 2023. A subsequent decline was then observed, reaching a low of 9.50% in the fourth quarter of 2023.
- Initial Stability (Q1 2022 - Q1 2023)
- The ROA remained relatively consistent, fluctuating within a narrow range. This suggests a stable relationship between net income and total assets during this period. The values ranged from 10.61% to 10.82%.
- Downward Trend (Q2 2023 - Q4 2023)
- A noticeable downward trend in ROA emerged in the second quarter of 2023, continuing through the fourth quarter. The ratio decreased from 10.19% to 9.50%. This decline indicates that the company generated less profit relative to its asset base during this timeframe. This could be due to a decrease in net income, an increase in total assets, or a combination of both.
- Recovery and Stabilization (Q1 2024 - Q4 2025)
- Following the decline, the ROA showed signs of recovery, increasing to 9.58% in the first quarter of 2024. It continued to improve, reaching 9.96% by the fourth quarter of 2024. This upward movement suggests improved profitability relative to asset utilization. The ROA then stabilized, fluctuating between 9.83% and 10.27% through the end of the observed period, indicating a return to a more consistent performance level.
Overall, the ROA demonstrates a period of stability, followed by a decline, and then a recovery towards stabilization. The fluctuations suggest sensitivity to changes in either net income or total assets, or both. The recent stabilization indicates a potential return to a more consistent level of profitability relative to the company’s asset base.