Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Union Pacific Corp., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.79 | 0.90 | 1.02 | 0.99 | 1.29 | |
| Quick ratio | 0.56 | 0.65 | 0.70 | 0.70 | 0.86 | |
| Cash ratio | 0.19 | 0.28 | 0.32 | 0.35 | 0.43 |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Union Pacific Corp.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Union Pacific Corp.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Union Pacific Corp.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Current Ratio
Union Pacific Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 3,459 | 4,163 | 4,006 | 3,596 | 4,130 | |
| Current liabilities | 4,351 | 4,626 | 3,939 | 3,640 | 3,206 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.79 | 0.90 | 1.02 | 0.99 | 1.29 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| CSX Corp. | 1.52 | 1.34 | 1.01 | 1.22 | 1.52 | |
| FedEx Corp. | 1.45 | 1.39 | 1.59 | 1.50 | 1.84 | |
| Norfolk Southern Corp. | 0.90 | 0.72 | 0.84 | 0.98 | 1.18 | |
| United Parcel Service Inc. | 1.11 | 1.15 | 1.22 | 1.18 | 1.23 | |
| Current Ratio, Sector | ||||||
| Industrial Transportation | 1.17 | 1.16 | 1.25 | 1.23 | 1.41 | |
| Current Ratio, Industry | ||||||
| Industrials | 1.28 | 1.29 | 1.44 | 1.44 | 1.38 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,459 ÷ 4,351 = 0.79
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Union Pacific Corp.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
Union Pacific Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 831 | 1,273 | 1,275 | 1,277 | 1,391 | |
| Accounts receivable, net | 1,595 | 1,755 | 1,493 | 1,258 | 1,356 | |
| Total quick assets | 2,426 | 3,028 | 2,768 | 2,535 | 2,747 | |
| Current liabilities | 4,351 | 4,626 | 3,939 | 3,640 | 3,206 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.56 | 0.65 | 0.70 | 0.70 | 0.86 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| CSX Corp. | 1.37 | 1.11 | 0.73 | 0.96 | 1.24 | |
| FedEx Corp. | 1.27 | 1.22 | 1.46 | 1.35 | 1.59 | |
| Norfolk Southern Corp. | 0.65 | 0.53 | 0.65 | 0.81 | 0.92 | |
| United Parcel Service Inc. | 0.99 | 0.99 | 1.01 | 1.05 | 1.11 | |
| Quick Ratio, Sector | ||||||
| Industrial Transportation | 1.01 | 0.98 | 1.04 | 1.06 | 1.19 | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.80 | 0.81 | 0.97 | 0.96 | 0.92 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,426 ÷ 4,351 = 0.56
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Union Pacific Corp.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Union Pacific Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 831 | 1,273 | 1,275 | 1,277 | 1,391 | |
| Total cash assets | 831 | 1,273 | 1,275 | 1,277 | 1,391 | |
| Current liabilities | 4,351 | 4,626 | 3,939 | 3,640 | 3,206 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.19 | 0.28 | 0.32 | 0.35 | 0.43 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| CSX Corp. | 0.91 | 0.58 | 0.22 | 0.50 | 0.74 | |
| FedEx Corp. | 0.26 | 0.34 | 0.50 | 0.44 | 0.63 | |
| Norfolk Southern Corp. | 0.25 | 0.14 | 0.27 | 0.41 | 0.49 | |
| United Parcel Service Inc. | 0.37 | 0.36 | 0.32 | 0.39 | 0.44 | |
| Cash Ratio, Sector | ||||||
| Industrial Transportation | 0.34 | 0.34 | 0.36 | 0.41 | 0.52 | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.41 | 0.37 | 0.51 | 0.52 | 0.50 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 831 ÷ 4,351 = 0.19
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Union Pacific Corp.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |