Stock Analysis on Net

Union Pacific Corp. (NYSE:UNP)

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Union Pacific Corp., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Operating profit margin 37.65% 39.87% 42.83% 40.11% 39.40%
Net profit margin 26.45% 28.13% 29.92% 27.38% 27.27%
Return on Investment
Return on equity (ROE) 43.14% 57.54% 46.06% 31.54% 32.65%
Return on assets (ROA) 9.50% 10.69% 10.27% 8.57% 9.60%

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

Microsoft Excel
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 9.58% 9.22% 9.67% 4.46% 9.61%

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

Microsoft Excel
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 8.09% 5.17% 6.38% 1.50% 3.89%

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

Microsoft Excel
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 27.86% 15.98% 17.17% 4.29% 14.53%

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

Microsoft Excel
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 5.53% 3.44% 3.87% 0.78% 2.43%

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.