Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Union Pacific Corp., liquidity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of liquidity ratios over the presented periods reveals several key trends and shifts in the financial position as measured by current, quick, and cash ratios.
- Current Ratio
- The current ratio displays fluctuations within a generally narrow range throughout the periods. Initially, it rose from 0.82 in March 2020 to peak at 1.06 in September 2020, indicating an improvement in the company's ability to cover short-term liabilities with current assets. However, this was followed by a decline to 0.62 by December 2021, marking the lowest point in the observed timeline. Subsequently, a moderate recovery occurred, with the ratio increasing again to exceed 1.00 in June 2024 before declining towards 0.65 by June 2025. This pattern suggests variability in short-term liquidity, with periods of strengthening followed by tightening of current asset coverage.
- Quick Ratio
- The quick ratio, which excludes inventory from current assets, mirrors the current ratio's overall pattern but registers generally lower values, reflecting reduced liquid asset availability beyond inventory. Starting at 0.60 in March 2020, it increased to 0.86 by September 2020. Thereafter, it declined to a trough of 0.47 in December 2021 before moderately rebounding to 0.76 by September 2024. The ratio then decreased again to 0.46 by June 2025. This pattern indicates that the company's liquid assets, excluding inventories, experienced cycles of improvement and contraction, potentially highlighting periods of varying cash and receivables management effectiveness.
- Cash Ratio
- The cash ratio, representing the most stringent liquidity measure, showed relatively low values throughout the timeline, indicating limited cash and cash equivalents relative to current liabilities. Starting at a moderate 0.24 in March 2020, it increased to 0.54 by September 2020. However, it then dropped to lows around 0.13-0.17 from mid-2021 through 2022. A slight recovery was observed in mid-2023 with a peak of 0.27 in June 2024, followed by a decline to 0.16 by June 2025. This volatility suggests fluctuating cash reserves and a generally conservative level of immediate liquidity.
Overall, the data indicates that while short-term liquidity ratios demonstrated periods of improvement during 2020, all three measures experienced declines through late 2021. Afterward, there was a moderate recovery in 2023 and 2024, followed by another reduction in 2025. The ratios consistently remained below or near 1.0, reflecting a liquidity position that may require attention to ensure sufficient coverage of short-term obligations. The relatively low cash ratio values reinforce caution regarding cash reserves despite intermittent increases.
Current Ratio
Union Pacific Corp., current ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 4,183) | 4,539) | 4,021) | 4,149) | 4,498) | 4,194) | 4,148) | 3,813) | 3,752) | 4,058) | 3,952) | 4,405) | 3,976) | 3,876) | 3,551) | 3,810) | 3,764) | 3,719) | 4,214) | 5,130) | 5,083) | 3,804) | |||||||
| Current liabilities | 6,452) | 6,222) | 5,254) | 5,366) | 4,287) | 4,534) | 5,106) | 5,304) | 5,249) | 6,209) | 5,520) | 5,712) | 6,002) | 5,462) | 5,744) | 5,111) | 4,357) | 4,871) | 4,173) | 4,841) | 5,279) | 4,641) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 0.65 | 0.73 | 0.77 | 0.77 | 1.05 | 0.93 | 0.81 | 0.72 | 0.71 | 0.65 | 0.72 | 0.77 | 0.66 | 0.71 | 0.62 | 0.75 | 0.86 | 0.76 | 1.01 | 1.06 | 0.96 | 0.82 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | 1.23 | 1.28 | 1.36 | 1.31 | 1.34 | 1.37 | 1.37 | 1.32 | 1.30 | 1.42 | 1.43 | 1.39 | 1.49 | 1.51 | 1.51 | 1.60 | 1.76 | 1.69 | 1.58 | 1.21 | 1.25 | 1.31 | |||||||
| Uber Technologies Inc. | 1.11 | 1.02 | 1.07 | 1.41 | 1.21 | 1.21 | 1.19 | 1.14 | 1.23 | 1.06 | 1.04 | 1.04 | 0.98 | 1.00 | 0.98 | 1.19 | 1.01 | 1.14 | 1.44 | 1.36 | 1.64 | 1.68 | |||||||
| United Airlines Holdings Inc. | 0.70 | 0.78 | 0.81 | 0.79 | 0.77 | 0.75 | 0.83 | 0.89 | 0.91 | 0.91 | 1.00 | 1.03 | 1.04 | 1.04 | 1.19 | 1.36 | 1.37 | 1.13 | 1.16 | 1.04 | 0.61 | 0.49 | |||||||
| United Parcel Service Inc. | 1.32 | 1.09 | 1.17 | 1.14 | 1.25 | 1.10 | 1.10 | 1.22 | 1.32 | 1.34 | 1.22 | 1.39 | 1.47 | 1.52 | 1.42 | 1.48 | 1.39 | 1.29 | 1.19 | 1.29 | 1.24 | 1.22 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,183 ÷ 6,452 = 0.65
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit fluctuations over the observed periods. Initially, there is an increase from 3,804 million USD at the end of Q1 2020 to a peak near 5,130 million USD by Q3 2020. Subsequently, a decline is noted towards Q4 2020, followed by a gradual recovery and stabilization with values generally ranging between 3,700 million USD and 4,500 million USD through to mid-2025. The highest values occur sporadically, suggesting no clear upward or downward long-term trend, but rather cyclical variability within a moderate range.
- Current Liabilities
- Current liabilities demonstrate a generally increasing trend over the entire period despite some short-term volatility. Starting at 4,641 million USD in Q1 2020, liabilities rise with intermittent dips, reaching as high as 6,452 million USD by Q2 2025. Notably, there is considerable volatility around late 2020 and early 2021 periods, with large movements which stabilize somewhat in later quarters. Overall, liabilities seem to increase at a faster rate than current assets.
- Current Ratio
- The current ratio fluctuates throughout the timeframe, exhibiting values below 1 in most periods, indicating that current liabilities tend to exceed current assets. The ratio starts at 0.82 in Q1 2020, rises to above 1.00 momentarily mid-2020, then declines sharply and remains mostly below 1 thereafter. Peaks above 1 occur around Q3 2020 and again near mid-2024, but these are brief. The lowest points drop near or below 0.6, particularly in the latter part of 2021 and intermittently after. The ratio’s variability alongside the increasing liability trend suggests increasing liquidity stress or tighter short-term financial positions over time.
Quick Ratio
Union Pacific Corp., quick ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,060) | 1,411) | 1,016) | 947) | 1,137) | 925) | 1,055) | 750) | 830) | 1,079) | 973) | 1,267) | 788) | 909) | 960) | 1,194) | 1,115) | 1,183) | 1,799) | 2,601) | 2,706) | 1,130) | |||||||
| Accounts receivable, net | 1,915) | 1,965) | 1,894) | 2,036) | 2,118) | 2,162) | 2,073) | 1,934) | 1,826) | 1,955) | 1,891) | 2,052) | 2,052) | 1,958) | 1,722) | 1,679) | 1,666) | 1,610) | 1,505) | 1,565) | 1,388) | 1,669) | |||||||
| Total quick assets | 2,975) | 3,376) | 2,910) | 2,983) | 3,255) | 3,087) | 3,128) | 2,684) | 2,656) | 3,034) | 2,864) | 3,319) | 2,840) | 2,867) | 2,682) | 2,873) | 2,781) | 2,793) | 3,304) | 4,166) | 4,094) | 2,799) | |||||||
| Current liabilities | 6,452) | 6,222) | 5,254) | 5,366) | 4,287) | 4,534) | 5,106) | 5,304) | 5,249) | 6,209) | 5,520) | 5,712) | 6,002) | 5,462) | 5,744) | 5,111) | 4,357) | 4,871) | 4,173) | 4,841) | 5,279) | 4,641) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 0.46 | 0.54 | 0.55 | 0.56 | 0.76 | 0.68 | 0.61 | 0.51 | 0.51 | 0.49 | 0.52 | 0.58 | 0.47 | 0.52 | 0.47 | 0.56 | 0.64 | 0.57 | 0.79 | 0.86 | 0.78 | 0.60 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | 1.10 | 1.15 | 1.24 | 1.17 | 1.22 | 1.25 | 1.25 | 1.19 | 1.16 | 1.30 | 1.31 | 1.27 | 1.37 | 1.39 | 1.40 | 1.50 | 1.63 | 1.56 | 1.45 | 1.07 | 1.11 | 1.18 | |||||||
| Uber Technologies Inc. | 0.97 | 0.89 | 0.95 | 1.27 | 1.05 | 1.03 | 1.02 | 0.96 | 1.04 | 0.88 | 0.88 | 0.88 | 0.83 | 0.83 | 0.82 | 1.01 | 0.85 | 0.96 | 1.19 | 1.20 | 1.45 | 1.49 | |||||||
| United Airlines Holdings Inc. | 0.62 | 0.68 | 0.71 | 0.69 | 0.68 | 0.66 | 0.73 | 0.78 | 0.83 | 0.82 | 0.91 | 0.94 | 0.95 | 0.95 | 1.10 | 1.25 | 1.27 | 1.01 | 1.02 | 0.94 | 0.51 | 0.37 | |||||||
| United Parcel Service Inc. | 1.17 | 0.95 | 1.05 | 1.01 | 1.03 | 0.96 | 0.98 | 1.06 | 1.19 | 1.21 | 1.11 | 1.26 | 1.35 | 1.41 | 1.32 | 1.36 | 1.27 | 1.12 | 1.00 | 1.18 | 1.13 | 1.11 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,975 ÷ 6,452 = 0.46
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity and short-term financial stability. The total quick assets fluctuated over the periods, beginning at 2,799 million USD in March 2020 and peaking at 4,166 million USD in September 2020. Subsequently, a decline occurred through the year 2021, reaching 2,682 million USD by December 2021. Throughout 2022 and 2023, total quick assets exhibited moderate volatility around a lower range compared to the initial peak, ending the period at 2,975 million USD in June 2025.
Current liabilities showed a generally increasing trend over the entire timeline. Starting at 4,641 million USD in March 2020, the value experienced periodic increases and slight decreases but overall grew substantially, reaching 6,452 million USD by June 2025. This upward movement suggests rising short-term obligations with some fluctuations that may reflect operational or financing activities influencing payable accounts.
The quick ratio, an indicator of immediate liquidity, demonstrated a downward trend from an initial 0.60 in March 2020, rising temporarily to 0.86 in September 2020, then gradually declining through 2021 and into 2022, reaching as low as 0.46 by December 2024. Some recovery occurred in mid-2024 with a ratio increase to 0.76 in September 2024, but the ratio again decreased to 0.46 in June 2025. Most values remained below 1.0, indicating that quick assets were insufficient to cover current liabilities during many quarters, implying potential liquidity constraints or aggressive use of short-term liabilities.
- Total Quick Assets
- Displayed significant volatility, with a peak in mid-2020 and a general decline thereafter.
- Moderate fluctuations observed from 2021 to 2025 without returning to early high levels.
- Current Liabilities
- Followed an upward trajectory across the period, increasing from approximately 4.6 billion USD to over 6.4 billion USD.
- Periodic increases and decreases reflect operational and financial adjustments but maintain an overall growth trend.
- Quick Ratio
- Remained under 1.0 throughout most quarters, indicating insufficient quick assets against current liabilities.
- Initial improvement seen in 2020 was followed by a downward trend through 2021 and ongoing volatility.
- Minor recoveries in 2024 did not sustain, ending with a lower ratio value.
Overall, the financial data points to increasing current liabilities coupled with stagnant or declining quick asset levels, resulting in declining liquidity as measured by the quick ratio. This pattern may signal increasing pressure on the company's ability to meet short-term obligations purely through liquid assets. Monitoring and managing liquidity risk will be important to maintain financial stability in future periods.
Cash Ratio
Union Pacific Corp., cash ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,060) | 1,411) | 1,016) | 947) | 1,137) | 925) | 1,055) | 750) | 830) | 1,079) | 973) | 1,267) | 788) | 909) | 960) | 1,194) | 1,115) | 1,183) | 1,799) | 2,601) | 2,706) | 1,130) | |||||||
| Total cash assets | 1,060) | 1,411) | 1,016) | 947) | 1,137) | 925) | 1,055) | 750) | 830) | 1,079) | 973) | 1,267) | 788) | 909) | 960) | 1,194) | 1,115) | 1,183) | 1,799) | 2,601) | 2,706) | 1,130) | |||||||
| Current liabilities | 6,452) | 6,222) | 5,254) | 5,366) | 4,287) | 4,534) | 5,106) | 5,304) | 5,249) | 6,209) | 5,520) | 5,712) | 6,002) | 5,462) | 5,744) | 5,111) | 4,357) | 4,871) | 4,173) | 4,841) | 5,279) | 4,641) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.16 | 0.23 | 0.19 | 0.18 | 0.27 | 0.20 | 0.21 | 0.14 | 0.16 | 0.17 | 0.18 | 0.22 | 0.13 | 0.17 | 0.17 | 0.23 | 0.26 | 0.24 | 0.43 | 0.54 | 0.51 | 0.24 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | 0.35 | 0.42 | 0.49 | 0.42 | 0.47 | 0.51 | 0.50 | 0.40 | 0.33 | 0.50 | 0.48 | 0.43 | 0.49 | 0.53 | 0.52 | 0.65 | 0.69 | 0.62 | 0.47 | 0.17 | 0.19 | 0.24 | |||||||
| Uber Technologies Inc. | 0.67 | 0.60 | 0.66 | 0.92 | 0.69 | 0.66 | 0.66 | 0.64 | 0.75 | 0.58 | 0.56 | 0.61 | 0.55 | 0.55 | 0.55 | 0.85 | 0.69 | 0.81 | 1.03 | 1.08 | 1.34 | 1.39 | |||||||
| United Airlines Holdings Inc. | 0.54 | 0.59 | 0.62 | 0.61 | 0.59 | 0.57 | 0.65 | 0.69 | 0.75 | 0.73 | 0.82 | 0.85 | 0.86 | 0.86 | 1.01 | 1.15 | 1.17 | 0.92 | 0.92 | 0.87 | 0.46 | 0.32 | |||||||
| United Parcel Service Inc. | 0.44 | 0.32 | 0.38 | 0.40 | 0.43 | 0.31 | 0.34 | 0.46 | 0.54 | 0.58 | 0.42 | 0.64 | 0.70 | 0.74 | 0.60 | 0.68 | 0.63 | 0.50 | 0.37 | 0.60 | 0.57 | 0.60 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,060 ÷ 6,452 = 0.16
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets experienced considerable fluctuations over the periods analyzed. Starting at 1130 million US dollars in March 2020, there was a significant increase to a peak of 2706 million in June 2020, followed by a slight decline to 2601 million in September 2020. Subsequently, cash assets decreased steadily to a low of 750 million in September 2023 before recovering gradually to 1411 million by March 2025. This pattern indicates volatility with periods of both strong liquidity accumulation and reduction over the nearly five-year span.
- Current Liabilities
- Current liabilities displayed an overall upward trend with some variability. Beginning at 4641 million US dollars in March 2020, current liabilities rose to 5279 million by June 2020, then declined temporarily to 4173 million in December 2020. However, from 2021 onward, liabilities generally increased, peaking at 6452 million in June 2025, the highest level in the data set. This suggests growing short-term obligations over the analyzed period, especially pronounced in the latter years.
- Cash Ratio
- The cash ratio, reflecting the company's immediate liquidity position relative to current liabilities, varied between 0.13 and 0.54. It started at 0.24 in March 2020, peaked at 0.54 in September 2020 coinciding with high cash assets and relatively lower liabilities at that point, then mostly declined throughout the subsequent quarters. From mid-2021 to the end of 2023, the ratio remained low, frequently below 0.2, indicating constrained liquidity relative to obligations. There was a slight improvement in certain quarters of 2024 and early 2025, but the ratio remained below 0.25, signaling that the company's liquid assets are consistently less than a quarter of its current liabilities.
- Overall Analysis
- Over the period under review, the company's liquidity profile demonstrates significant variation with periods of robust cash holdings but generally increasing current liabilities. The declining and relatively low cash ratio highlights potential liquidity pressure, suggesting that available cash may be insufficient to cover short-term liabilities comfortably. The increase in current liabilities combined with fluctuating cash assets indicates the company may be relying more on short-term financing or facing operational or financial demands impacting working capital management. Close monitoring of liquidity and liabilities is advisable considering the observed trends.