Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Union Pacific Corp., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Union Pacific Corp. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Union Pacific Corp. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Union Pacific Corp. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Union Pacific Corp. number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Union Pacific Corp. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
Inventory Turnover
Union Pacific Corp., inventory turnover 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 revenues | 24,119) | 24,875) | 21,804) | 19,533) | 21,708) | |
| Materials and supplies | 743) | 741) | 621) | 638) | 751) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 32.46 | 33.57 | 35.11 | 30.62 | 28.91 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| FedEx Corp. | 149.26 | 146.80 | 143.03 | 121.01 | 126.03 | |
| United Airlines Holdings Inc. | 34.41 | 40.54 | 25.06 | 16.48 | 40.35 | |
| United Parcel Service Inc. | 97.28 | 112.87 | 135.69 | 136.50 | 145.00 | |
| Inventory Turnover, Sector | ||||||
| Transportation | 73.23 | 83.93 | 81.51 | 70.20 | — | |
| Inventory Turnover, Industry | ||||||
| Industrials | 4.25 | 4.30 | 4.04 | 3.72 | — | |
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
Inventory turnover = Operating revenues ÷ Materials and supplies
= 24,119 ÷ 743 = 32.46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Union Pacific Corp. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Union Pacific Corp., receivables turnover 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 revenues | 24,119) | 24,875) | 21,804) | 19,533) | 21,708) | |
| Accounts receivable, net | 2,073) | 1,891) | 1,722) | 1,505) | 1,595) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 11.63 | 13.15 | 12.66 | 12.98 | 13.61 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| FedEx Corp. | 8.85 | 7.88 | 6.96 | 6.85 | 7.65 | |
| Uber Technologies Inc. | 10.95 | 11.47 | 7.16 | 10.38 | 11.65 | |
| United Airlines Holdings Inc. | 28.30 | 24.96 | 14.81 | 11.86 | 31.71 | |
| United Parcel Service Inc. | 8.11 | 7.97 | 7.76 | 7.87 | 7.76 | |
| Receivables Turnover, Sector | ||||||
| Transportation | 10.29 | 9.56 | 8.05 | 8.08 | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 8.59 | 8.17 | 7.76 | 7.58 | — | |
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
Receivables turnover = Operating revenues ÷ Accounts receivable, net
= 24,119 ÷ 2,073 = 11.63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Union Pacific Corp. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Payables Turnover
Union Pacific Corp., payables turnover 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 revenues | 24,119) | 24,875) | 21,804) | 19,533) | 21,708) | |
| Accounts payable | 856) | 784) | 752) | 612) | 749) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 28.18 | 31.73 | 28.99 | 31.92 | 28.98 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| FedEx Corp. | 23.43 | 23.20 | 21.86 | 21.17 | 23.00 | |
| Uber Technologies Inc. | 28.43 | 27.00 | 10.87 | 21.93 | 26.50 | |
| United Airlines Holdings Inc. | 14.01 | 13.24 | 9.62 | 9.63 | 16.00 | |
| United Parcel Service Inc. | 14.35 | 13.36 | 12.93 | 13.11 | 13.34 | |
| Payables Turnover, Sector | ||||||
| Transportation | 17.96 | 17.23 | 15.26 | 15.94 | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 8.10 | 7.86 | 7.84 | 7.52 | — | |
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
Payables turnover = Operating revenues ÷ Accounts payable
= 24,119 ÷ 856 = 28.18
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Union Pacific Corp. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Working Capital Turnover
Union Pacific Corp., working capital turnover 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) | ||||||
| Current assets | 4,148) | 3,952) | 3,551) | 4,214) | 3,459) | |
| Less: Current liabilities | 5,106) | 5,520) | 5,744) | 4,173) | 4,351) | |
| Working capital | (958) | (1,568) | (2,193) | 41) | (892) | |
| Operating revenues | 24,119) | 24,875) | 21,804) | 19,533) | 21,708) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | 476.41 | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| FedEx Corp. | 17.94 | 15.35 | 12.13 | 11.46 | 17.11 | |
| Uber Technologies Inc. | 20.23 | 80.50 | — | 3.69 | 1.71 | |
| United Airlines Holdings Inc. | — | 681.14 | 6.98 | 7.40 | — | |
| United Parcel Service Inc. | 52.36 | 24.61 | 13.21 | 26.45 | 43.84 | |
| Working Capital Turnover, Sector | ||||||
| Transportation | 75.38 | 32.61 | 15.90 | 13.91 | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 13.02 | 10.27 | 6.91 | 4.52 | — | |
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
Working capital turnover = Operating revenues ÷ Working capital
= 24,119 ÷ -958 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Union Pacific Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 32.46 | 33.57 | 35.11 | 30.62 | 28.91 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 11 | 11 | 10 | 12 | 13 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| FedEx Corp. | 2 | 2 | 3 | 3 | 3 | |
| United Airlines Holdings Inc. | 11 | 9 | 15 | 22 | 9 | |
| United Parcel Service Inc. | 4 | 3 | 3 | 3 | 3 | |
| Average Inventory Processing Period, Sector | ||||||
| Transportation | 5 | 4 | 4 | 5 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 86 | 85 | 90 | 98 | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 32.46 = 11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Union Pacific Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 11.63 | 13.15 | 12.66 | 12.98 | 13.61 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 31 | 28 | 29 | 28 | 27 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| FedEx Corp. | 41 | 46 | 52 | 53 | 48 | |
| Uber Technologies Inc. | 33 | 32 | 51 | 35 | 31 | |
| United Airlines Holdings Inc. | 13 | 15 | 25 | 31 | 12 | |
| United Parcel Service Inc. | 45 | 46 | 47 | 46 | 47 | |
| Average Receivable Collection Period, Sector | ||||||
| Transportation | 35 | 38 | 45 | 45 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 42 | 45 | 47 | 48 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.63 = 31
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Union Pacific Corp. number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Operating Cycle
Union Pacific Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 11 | 11 | 10 | 12 | 13 | |
| Average receivable collection period | 31 | 28 | 29 | 28 | 27 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 42 | 39 | 39 | 40 | 40 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| FedEx Corp. | 43 | 48 | 55 | 56 | 51 | |
| United Airlines Holdings Inc. | 24 | 24 | 40 | 53 | 21 | |
| United Parcel Service Inc. | 49 | 49 | 50 | 49 | 50 | |
| Operating Cycle, Sector | ||||||
| Transportation | 40 | 42 | 49 | 50 | — | |
| Operating Cycle, Industry | ||||||
| Industrials | 128 | 130 | 137 | 146 | — | |
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 cycle = Average inventory processing period + Average receivable collection period
= 11 + 31 = 42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
Union Pacific Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 28.18 | 31.73 | 28.99 | 31.92 | 28.98 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 13 | 12 | 13 | 11 | 13 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| FedEx Corp. | 16 | 16 | 17 | 17 | 16 | |
| Uber Technologies Inc. | 13 | 14 | 34 | 17 | 14 | |
| United Airlines Holdings Inc. | 26 | 28 | 38 | 38 | 23 | |
| United Parcel Service Inc. | 25 | 27 | 28 | 28 | 27 | |
| Average Payables Payment Period, Sector | ||||||
| Transportation | 20 | 21 | 24 | 23 | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 45 | 46 | 47 | 49 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 28.18 = 13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Union Pacific Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 11 | 11 | 10 | 12 | 13 | |
| Average receivable collection period | 31 | 28 | 29 | 28 | 27 | |
| Average payables payment period | 13 | 12 | 13 | 11 | 13 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 29 | 27 | 26 | 29 | 27 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| FedEx Corp. | 27 | 32 | 38 | 39 | 35 | |
| United Airlines Holdings Inc. | -2 | -4 | 2 | 15 | -2 | |
| United Parcel Service Inc. | 24 | 22 | 22 | 21 | 23 | |
| Cash Conversion Cycle, Sector | ||||||
| Transportation | 20 | 21 | 25 | 27 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 83 | 84 | 90 | 97 | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 11 + 31 – 13 = 29
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Union Pacific Corp. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |