Union Pacific Corp. (NYSE:UNP)

Current Assets

The current assets exhibited a decline from 4,214 million US dollars at the end of 2020 to 3,551 million US dollars by the end of 2021, indicating a reduction in short-term asset holdings during this period. In 2022, the current assets partially recovered to 3,952 million US dollars, followed by a continued gradual increase to 4,148 million US dollars in 2023. However, there was a slight decrease to 4,021 million US dollars in 2024, suggesting some volatility but overall relative stability toward the end of the timeframe.

Adjusted Current Assets

The trend in adjusted current assets closely mirrors that of current assets, starting at 4,231 million US dollars in 2020 and decreasing to 3,561 million US dollars in 2021. Subsequently, a steady recovery occurred with values rising to 3,962 million US dollars in 2022 and further to 4,157 million US dollars in 2023. A minor reduction to 4,027 million US dollars was seen in 2024. This similarity indicates consistent adjustments applied to current assets over the years without significant deviation from the original values.

Overall Analysis

The data reflects a dip in both current and adjusted current assets during 2021, followed by a recovery phase in 2022 and 2023, stabilizing near the initial levels observed in 2020. The slight decreases recorded in 2024 suggest a need for monitoring short-term asset management to maintain liquidity levels. The close alignment of current assets and adjusted current assets values over the period implies that adjustments made are relatively minor and do not substantially alter the company's short-term asset position.

The annual financial data reveals a consistent upward trend in both total assets and adjusted total assets over the five-year period from 2020 to 2024. Total assets have increased steadily each year, starting at approximately 62.4 billion US dollars in 2020 and reaching around 67.7 billion US dollars by the end of 2024. This represents a gradual but consistent growth trajectory.

Similarly, the adjusted total assets follow a nearly identical pattern, with values slightly higher than the reported total assets in each year, indicating minor adjustments that do not significantly alter the overall asset size. The adjusted total assets grew from about 62.4 billion US dollars in 2020 to approximately 67.7 billion US dollars in 2024, mirroring the trend seen in total assets.

Asset Growth

The data suggests a steady asset base expansion with annual increments averaging around 1.2 billion US dollars. This steady increase may indicate ongoing investment, asset acquisition, or asset revaluation strategies.

Consistency Between Reported and Adjusted Assets

The minimal difference between total and adjusted total assets across all years points to stable accounting practices and reliable asset reporting without significant adjustments affecting the reported totals.

Overall, the company demonstrates a pattern of continuous asset growth with stable asset reporting integrity, which may reflect a solid financial position and effective asset management over the analyzed period.

The analysis of the financial data over the five-year period reveals several notable trends in the company's liabilities structure.

Total Liabilities

Total liabilities increased consistently from 45,440 million US dollars at the end of 2020 to a peak of 53,286 million US dollars by the end of 2022. Subsequently, there was a decline in total liabilities to 52,344 million in 2023 and a further reduction to 50,825 million in 2024. This indicates an initial growth in obligations, followed by a period of liability reduction in the last two years.

Adjusted Total Liabilities

Adjusted total liabilities followed a pattern similar to total liabilities but on a smaller scale. They rose from 33,193 million in 2020 to 40,253 million in 2022, showing a significant increase over the first three years. However, adjustments led to a decline in subsequent years, with values dropping to 39,221 million in 2023 and 37,674 million in 2024. This suggests that after a growth phase, the company undertook measures to reduce its adjusted liabilities.

Comparative Insights

Throughout the period, adjusted total liabilities remained consistently lower than total liabilities, indicating adjustments that potentially remove certain types of liabilities or account for refined financial considerations. The peak of both liability measures in 2022 may reflect a strategic expansion or increased borrowing during that period, with subsequent reductions possibly indicating debt repayment or reassessment of liabilities. The trends underscore a focus on liability management in recent years.

Common Shareholders’ Equity

The common shareholders’ equity showed a declining trend from 2020 through 2022, decreasing from 16,958 million US dollars in 2020 to a low of 12,163 million US dollars in 2022. This represents a significant reduction over the three-year period. However, there was a recovery observed in the following years, with equity increasing to 14,788 million US dollars in 2023 and reaching 16,890 million US dollars in 2024, almost returning to the initial 2020 level.

Adjusted Common Shareholders’ Equity

Adjusted common shareholders’ equity followed a similar but less volatile pattern. It declined from 29,222 million US dollars in 2020 to 25,206 million US dollars in 2022, indicating a downward trend in adjusted equity over the first three years. From 2022 onwards, an upward recovery became noticeable, with values rising to 27,920 million in 2023 and further increasing to 30,047 million US dollars by 2024, surpassing the starting value in 2020.

Overall Trends and Insights

Both common shareholders’ equity and adjusted common shareholders’ equity experienced declines through 2022, likely reflecting challenges or strategic investments affecting equity positions. The recovery in 2023 and 2024 suggests improvements in financial performance or capital structure, leading to restoration and growth in equity levels. The adjusted figures present a higher absolute value compared to the unadjusted common shareholders’ equity, indicating adjustments that may account for additional capital components or valuation elements. The return to and beyond initial equity levels by 2024 points to a positive turnaround after a period of contraction.

Total reported debt

The total reported debt shows a general upward trend from 2020 to 2022, increasing from 26,729 million US dollars to 33,326 million US dollars. This is followed by a slight decline in 2023 and 2024, with values decreasing to 32,579 million and then to 31,192 million US dollars respectively, indicating a reduction in debt levels after peaking in 2022.

Common shareholders’ equity

Common shareholders’ equity exhibits a declining trend from 2020 to 2022, falling from 16,958 million US dollars to 12,163 million US dollars. However, a recovery is observed in the subsequent years, with equity increasing to 14,788 million in 2023 and further rising to 16,890 million US dollars in 2024, almost reaching the 2020 level.

Total reported capital

Total reported capital has steadily increased over the five-year period, starting at 43,687 million US dollars in 2020 and growing to 48,082 million US dollars by 2024. The growth is consistent but moderate, reflecting a gradual expansion in overall capital base.

Adjusted total debt

Adjusted total debt follows a similar pattern to total reported debt, with an increase from 28,333 million US dollars in 2020 to a peak of 34,957 million in 2022. This is succeeded by decreases in 2023 and 2024, falling to 34,179 million and 32,463 million US dollars respectively, suggesting a strategic reduction in debt obligations post-2022.

Adjusted common shareholders’ equity

Adjusted common shareholders’ equity declines from 29,222 million US dollars in 2020 to 25,206 million in 2022, representing a period of contraction. This trend reverses after 2022, with equity rising to 27,920 million in 2023 and 30,047 million in 2024, showing a recovery and strengthening of equity base adjusted for additional factors.

Adjusted total capital

Adjusted total capital shows continuous growth across the period, increasing from 57,555 million US dollars in 2020 to 62,510 million US dollars in 2024. This steady increase suggests a strengthening of the company’s capital structure when adjustments are considered, reflecting a growing financial foundation.

The annual financial data reveals the following trends regarding net income and adjusted net income over the period from 2020 to 2024:

Net Income

Net income shows an overall positive trend, rising from 5,349 million USD in 2020 to 6,747 million USD in 2024. The data indicates a peak in 2022 at 6,998 million USD, followed by a noticeable decline in 2023 down to 6,379 million USD. However, the net income rebounds in 2024, suggesting recovery or improvement following the dip.

Adjusted Net Income

Adjusted net income also exhibits growth over the same period. Beginning at 5,465 million USD in 2020, it increases to a peak of 7,592 million USD in 2022. Similar to net income, there is a decline in 2023 to 6,463 million USD, before a slight increase to 6,663 million USD in 2024. The adjusted figures consistently surpass the reported net income, indicating adjustments that may exclude certain irregular items or one-time effects.

Overall, both net income and adjusted net income demonstrate a consistent uptrend through 2022, followed by a temporal decline in 2023, and modest recovery in 2024. This pattern may reflect external market conditions, operational challenges, or transitional factors impacting profitability in 2023, with improvements noted thereafter. The adjustment to net income tends to amplify the overall profitability, suggesting that non-recurring expenses or losses are accounted for in the reconciliation to adjusted net income.