Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Union Pacific Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
The solvency profile demonstrates a consistent and systemic deleveraging trend from March 2022 through March 2026. Across nearly all measured metrics, there is a clear trajectory toward reduced financial risk and a strengthened balance sheet, characterized by a decreasing reliance on borrowed funds relative to equity and total assets.
- Debt-to-Equity and Financial Leverage
- A significant reduction in leverage is observed over the analyzed period. The debt-to-equity ratio declined from 2.71 in March 2022 to 1.58 by March 2026. This trend remained consistent even when including operating lease liabilities, which fell from 2.82 to 1.61. A similar pattern is evident in the financial leverage ratio, which decreased from a peak of 5.56 in September 2022 to 3.59 by the end of the period. A brief deviation occurred in early 2025, where leverage ratios saw a temporary uptick before resuming their downward trajectory.
- Capital and Asset Ratios
- The proportion of debt relative to total capital and assets has tightened gradually. The debt-to-capital ratio shifted from 0.73 in March 2022 to 0.61 by March 2026, indicating a shift in the capital structure toward a higher proportion of equity. Simultaneously, the debt-to-assets ratio decreased from 0.50 to 0.44. These metrics suggest a disciplined approach to asset financing and a reduction in the overall debt burden relative to the company's asset base.
- Debt Servicing Capacity
- Interest coverage remained robust throughout the period, consistently staying above 7.0. After an initial decline from 8.53 in March 2022 to a low of 7.13 in September 2023, the ratio entered a recovery phase, climbing back to 8.09 by March 2026. This indicates that despite fluctuations in earnings or interest expenses, the capacity to service debt obligations has remained strong and has improved in the latter half of the analyzed timeframe.
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Debt Ratios
Coverage Ratios
Debt to Equity
Union Pacific Corp., debt to equity calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Debt due within one year | 867) | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | ||||||
| Debt due after one year | 29,784) | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | ||||||
| Total debt | 30,651) | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | ||||||
| Common shareholders’ equity | 19,418) | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 1.58 | 1.72 | 1.84 | 2.02 | 2.05 | 1.85 | 1.89 | 1.93 | 2.04 | 2.20 | 2.35 | 2.52 | 2.71 | 2.74 | 2.85 | 2.52 | 2.71 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.76 | 0.73 | 0.75 | 0.76 | 0.75 | 0.73 | 0.77 | 0.77 | 0.77 | 0.79 | 0.82 | 0.84 | 0.80 | 0.81 | 0.84 | 0.82 | 0.85 | ||||||
| Uber Technologies Inc. | 0.42 | 0.39 | 0.38 | 0.42 | 0.38 | 0.39 | 0.74 | 0.77 | 0.86 | 0.84 | 0.99 | 1.07 | 1.23 | 1.26 | 1.48 | 1.39 | 1.04 | ||||||
| United Airlines Holdings Inc. | 1.52 | 1.64 | 1.78 | 2.02 | 2.19 | 2.26 | 2.49 | 2.78 | 3.24 | 3.40 | 3.57 | 4.17 | 4.80 | 4.68 | 6.74 | 8.55 | 9.55 | ||||||
| United Parcel Service Inc. | 1.55 | 1.49 | 1.57 | 1.57 | 1.36 | 1.27 | 1.30 | 1.30 | 1.18 | 1.29 | 1.10 | 1.04 | 1.11 | 0.99 | 1.20 | 1.26 | 1.42 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Common shareholders’ equity
= 30,651 ÷ 19,418 = 1.58
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent improvement in leverage over the analyzed period from March 2022 to March 2026. The debt-to-equity ratio decreased from 2.71 to 1.58, indicating a strategic shift toward a more conservative capital structure and a reduced reliance on borrowed funds relative to equity.
- Debt to Equity Ratio Trends
- The ratio peaked at 2.85 in September 2022, followed by a general downward trajectory. Despite a brief reversal in March 2025 where the ratio rose to 2.05, the long-term trend remained negative, reaching a period low of 1.58 by March 2026. This decline suggests a strengthening of the balance sheet and an enhanced ability to meet long-term obligations.
- Total Debt Analysis
- Total debt remained relatively stable, fluctuating within a range of approximately 30.6 billion to 33.8 billion US dollars. After reaching a maximum of 33,784 million in March 2023, total debt levels gradually declined to 30,651 million by the end of the period. The reduction in absolute debt levels supported the overall improvement in solvency ratios.
- Shareholders' Equity Expansion
- The most significant driver of the improving solvency metrics was the steady growth in common shareholders' equity. Equity increased from 11,897 million in March 2022 to 19,418 million in March 2026. This consistent accumulation of equity provided a substantial cushion against total debt, effectively lowering the leverage ratio even during periods where debt levels remained flat.
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Debt to Equity (including Operating Lease Liability)
Union Pacific Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Debt due within one year | 867) | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | ||||||
| Debt due after one year | 29,784) | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | ||||||
| Total debt | 30,651) | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | ||||||
| Noncurrent operating lease liabilities | 619) | 738) | 764) | 831) | 758) | 925) | 934) | 988) | 1,016) | 1,245) | 1,244) | 1,217) | 1,233) | 1,300) | 1,303) | 1,295) | 1,291) | ||||||
| Total debt (including operating lease liability) | 31,270) | 32,552) | 32,571) | 33,644) | 33,600) | 32,117) | 32,347) | 32,880) | 32,944) | 33,824) | 34,121) | 34,519) | 35,017) | 34,626) | 34,725) | 33,302) | 33,530) | ||||||
| Common shareholders’ equity | 19,418) | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.61 | 1.76 | 1.88 | 2.07 | 2.09 | 1.90 | 1.95 | 1.99 | 2.10 | 2.29 | 2.44 | 2.62 | 2.81 | 2.85 | 2.96 | 2.62 | 2.82 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 1.36 | 1.33 | 1.39 | 1.41 | 1.39 | 1.37 | 1.42 | 1.43 | 1.44 | 1.47 | 1.54 | 1.58 | 1.50 | 1.49 | 1.52 | 1.48 | 1.49 | ||||||
| Uber Technologies Inc. | 0.50 | 0.45 | 0.43 | 0.50 | 0.45 | 0.46 | 0.86 | 0.90 | 1.01 | 1.00 | 1.17 | 1.27 | 1.48 | 1.52 | 1.77 | 1.68 | 1.25 | ||||||
| United Airlines Holdings Inc. | 1.95 | 2.03 | 2.19 | 2.45 | 2.61 | 2.65 | 2.92 | 3.25 | 3.79 | 3.94 | 4.15 | 4.85 | 5.58 | 5.41 | 7.84 | 9.94 | 11.12 | ||||||
| United Parcel Service Inc. | 1.82 | 1.76 | 1.85 | 1.84 | 1.63 | 1.53 | 1.56 | 1.55 | 1.44 | 1.54 | 1.33 | 1.25 | 1.32 | 1.19 | 1.41 | 1.48 | 1.65 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Common shareholders’ equity
= 31,270 ÷ 19,418 = 1.61
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent strengthening over the analyzed period from March 31, 2022, to March 31, 2026. The most prominent trend is the sustained reduction in the debt-to-equity ratio, which declined from 2.82 to 1.61, indicating a significant decrease in financial leverage and an improved capital structure.
- Total Debt Trends
- Total debt, including operating lease liabilities, remained relatively stable with a slight downward trajectory. After peaking at 34,725 million USD in September 2022, obligations generally trended lower, reaching a low of 32,117 million USD by December 31, 2024. A temporary increase occurred in the first half of 2025, peaking at 33,644 million USD in June, before declining further to 31,270 million USD by March 31, 2026.
- Shareholders' Equity Growth
- Common shareholders' equity demonstrated robust and consistent growth throughout the period. Starting at 11,897 million USD in March 2022, equity expanded to 19,418 million USD by March 31, 2026. Aside from a marginal contraction in March 2025, the equity base grew steadily, providing a stronger cushion for creditors and reducing the company's reliance on external borrowing.
- Debt to Equity Ratio Dynamics
- The debt-to-equity ratio reflected the combined impact of stable debt levels and rising equity. The ratio peaked at 2.96 in September 2022 and subsequently entered a long-term decline. A notable milestone was reached in June 2024, when the ratio fell below 2.00 for the first time. While a brief spike to 2.09 was observed in March 2025—coinciding with a temporary increase in debt and a dip in equity—the ratio resumed its downward trend to close at a period low of 1.61.
The overall trajectory suggests a strategic shift toward a more conservative financial position. The substantial growth in equity, paired with the reduction in total debt, has effectively lowered the solvency risk and improved the long-term financial stability of the organization.
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Debt to Capital
Union Pacific Corp., debt to capital calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Debt due within one year | 867) | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | ||||||
| Debt due after one year | 29,784) | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | ||||||
| Total debt | 30,651) | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | ||||||
| Common shareholders’ equity | 19,418) | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | ||||||
| Total capital | 50,069) | 50,281) | 49,111) | 49,071) | 48,881) | 48,082) | 47,997) | 48,381) | 47,593) | 47,367) | 46,881) | 46,496) | 46,238) | 45,489) | 45,165) | 44,717) | 44,136) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.61 | 0.63 | 0.65 | 0.67 | 0.67 | 0.65 | 0.65 | 0.66 | 0.67 | 0.69 | 0.70 | 0.72 | 0.73 | 0.73 | 0.74 | 0.72 | 0.73 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.43 | 0.42 | 0.43 | 0.43 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.46 | 0.44 | 0.45 | 0.46 | 0.45 | 0.46 | ||||||
| Uber Technologies Inc. | 0.30 | 0.28 | 0.27 | 0.30 | 0.28 | 0.28 | 0.43 | 0.43 | 0.46 | 0.46 | 0.50 | 0.52 | 0.55 | 0.56 | 0.60 | 0.58 | 0.51 | ||||||
| United Airlines Holdings Inc. | 0.60 | 0.62 | 0.64 | 0.67 | 0.69 | 0.69 | 0.71 | 0.74 | 0.76 | 0.77 | 0.78 | 0.81 | 0.83 | 0.82 | 0.87 | 0.90 | 0.91 | ||||||
| United Parcel Service Inc. | 0.61 | 0.60 | 0.61 | 0.61 | 0.58 | 0.56 | 0.57 | 0.57 | 0.54 | 0.56 | 0.52 | 0.51 | 0.53 | 0.50 | 0.55 | 0.56 | 0.59 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 30,651 ÷ 50,069 = 0.61
2 Click competitor name to see calculations.
The analysis of solvency metrics from March 2022 through March 2026 reveals a consistent trend toward deleveraging and a strengthening of the overall capital structure. The simultaneous reduction in total debt and the expansion of the total capital base have led to a measurable improvement in the company's solvency position.
- Total Debt Trends
- Total debt exhibited a period of moderate increase in 2022, peaking at US$ 33,784 million in March 2023. Following this peak, a general downward trajectory was observed, with debt levels decreasing to US$ 31,192 million by December 2024. A temporary increase occurred in the first half of 2025, reaching US$ 32,842 million, before a final decline to a period low of US$ 30,651 million by March 2026.
- Total Capital Growth
- Total capital demonstrated steady and consistent growth throughout the analyzed timeframe. Starting at US$ 44,136 million in March 2022, the capital base expanded nearly linearly to reach US$ 50,069 million by March 2026. This upward trend indicates a sustained increase in the total financing available to the entity, contributing to a more stable financial foundation.
- Debt to Capital Ratio Analysis
- The debt to capital ratio shows a clear downward trend, shifting from a high of 0.74 in September 2022 to a low of 0.61 by March 2026. While the ratio remained relatively stable between 0.72 and 0.74 during 2022 and early 2023, it entered a phase of steady decline throughout 2023 and 2024. A brief period of plateauing occurred between June 2024 and June 2025, with the ratio fluctuating between 0.65 and 0.67, followed by a final sharp decrease in the subsequent three quarters.
Overall, the financial trajectory indicates a strategic shift toward reducing leverage. The decline in the debt to capital ratio from 0.73 to 0.61 suggests a reduced dependency on debt relative to total capital, thereby enhancing the long-term solvency and financial flexibility of the organization.
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Debt to Capital (including Operating Lease Liability)
Union Pacific Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Debt due within one year | 867) | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | ||||||
| Debt due after one year | 29,784) | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | ||||||
| Total debt | 30,651) | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | ||||||
| Noncurrent operating lease liabilities | 619) | 738) | 764) | 831) | 758) | 925) | 934) | 988) | 1,016) | 1,245) | 1,244) | 1,217) | 1,233) | 1,300) | 1,303) | 1,295) | 1,291) | ||||||
| Total debt (including operating lease liability) | 31,270) | 32,552) | 32,571) | 33,644) | 33,600) | 32,117) | 32,347) | 32,880) | 32,944) | 33,824) | 34,121) | 34,519) | 35,017) | 34,626) | 34,725) | 33,302) | 33,530) | ||||||
| Common shareholders’ equity | 19,418) | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | ||||||
| Total capital (including operating lease liability) | 50,688) | 51,019) | 49,875) | 49,902) | 49,639) | 49,007) | 48,931) | 49,369) | 48,609) | 48,612) | 48,125) | 47,713) | 47,471) | 46,789) | 46,468) | 46,012) | 45,427) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.62 | 0.64 | 0.65 | 0.67 | 0.68 | 0.66 | 0.66 | 0.67 | 0.68 | 0.70 | 0.71 | 0.72 | 0.74 | 0.74 | 0.75 | 0.72 | 0.74 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.58 | 0.57 | 0.58 | 0.58 | 0.58 | 0.58 | 0.59 | 0.59 | 0.59 | 0.60 | 0.61 | 0.61 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | ||||||
| Uber Technologies Inc. | 0.33 | 0.31 | 0.30 | 0.33 | 0.31 | 0.32 | 0.46 | 0.47 | 0.50 | 0.50 | 0.54 | 0.56 | 0.60 | 0.60 | 0.64 | 0.63 | 0.56 | ||||||
| United Airlines Holdings Inc. | 0.66 | 0.67 | 0.69 | 0.71 | 0.72 | 0.73 | 0.74 | 0.76 | 0.79 | 0.80 | 0.81 | 0.83 | 0.85 | 0.84 | 0.89 | 0.91 | 0.92 | ||||||
| United Parcel Service Inc. | 0.65 | 0.64 | 0.65 | 0.65 | 0.62 | 0.61 | 0.61 | 0.61 | 0.59 | 0.61 | 0.57 | 0.56 | 0.57 | 0.54 | 0.58 | 0.60 | 0.62 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 31,270 ÷ 50,688 = 0.62
2 Click competitor name to see calculations.
The solvency profile of Union Pacific Corp. demonstrates a consistent improvement in capital structure from March 2022 through March 2026. The primary indicator of this trend is a sustained reduction in the debt-to-capital ratio, reflecting a strategic shift toward lower leverage and an expanded capital base.
- Total Debt (including operating lease liability)
- Debt levels exhibited initial volatility, peaking at 35,017 million US dollars in March 2023. Following this peak, a steady deleveraging trend emerged, with total debt declining to 31,270 million US dollars by March 2026. This represents a significant reduction in total liabilities over the four-year period.
- Total Capital (including operating lease liability)
- Total capital showed a persistent upward trajectory. Starting at 45,427 million US dollars in March 2022, the figure rose to 50,688 million US dollars by March 2026. The continuous growth of the capital base, occurring in tandem with the reduction of debt, suggests a strengthening of the company's equity position.
- Debt to Capital Ratio
- The debt-to-capital ratio shifted from a peak of 0.75 in September 2022 to a period-low of 0.62 in March 2026. While the ratio remained relatively stable between 0.70 and 0.75 through 2022 and 2023, a more accelerated decline was observed from March 2024 onward. This downward movement indicates that a smaller proportion of the company's capital is derived from debt, thereby reducing financial risk and improving long-term solvency.
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Debt to Assets
Union Pacific Corp., debt to assets calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Debt due within one year | 867) | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | ||||||
| Debt due after one year | 29,784) | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | ||||||
| Total debt | 30,651) | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | ||||||
| Total assets | 69,644) | 69,698) | 68,647) | 68,576) | 68,492) | 67,715) | 67,570) | 67,817) | 67,266) | 67,132) | 66,540) | 66,033) | 65,968) | 65,449) | 65,343) | 64,440) | 64,051) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.44 | 0.46 | 0.46 | 0.48 | 0.48 | 0.46 | 0.46 | 0.47 | 0.47 | 0.49 | 0.49 | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.24 | 0.23 | 0.24 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | ||||||
| Uber Technologies Inc. | 0.18 | 0.17 | 0.17 | 0.17 | 0.16 | 0.16 | 0.23 | 0.23 | 0.24 | 0.24 | 0.26 | 0.27 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | ||||||
| United Airlines Holdings Inc. | 0.30 | 0.33 | 0.33 | 0.35 | 0.36 | 0.39 | 0.39 | 0.40 | 0.41 | 0.45 | 0.43 | 0.44 | 0.45 | 0.48 | 0.48 | 0.48 | 0.50 | ||||||
| United Parcel Service Inc. | 0.34 | 0.33 | 0.35 | 0.35 | 0.31 | 0.30 | 0.32 | 0.32 | 0.30 | 0.31 | 0.30 | 0.30 | 0.31 | 0.28 | 0.29 | 0.29 | 0.31 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 30,651 ÷ 69,644 = 0.44
2 Click competitor name to see calculations.
An analysis of the solvency position reveals a gradual improvement in the leverage profile from March 2022 through March 2026. The Debt to Assets ratio demonstrates a general downward trajectory, indicating a strategic reduction in the proportion of assets financed through debt over the observed period.
- Total Debt Trends
- Total debt exhibited moderate volatility, reaching a peak of 33,784 million US$ in March 2023. Following this peak, a general decline was observed, with debt levels falling to 30,651 million US$ by March 2026. This reduction suggests a consistent effort to deleverage the balance sheet.
- Total Asset Expansion
- Total assets maintained a steady upward trend, growing from 64,051 million US$ in March 2022 to 69,644 million US$ by March 2026. The consistent growth of the asset base has acted as a primary driver in improving the solvency ratio, providing a larger cushion of assets against outstanding liabilities.
- Debt to Assets Ratio Dynamics
- The Debt to Assets ratio initially fluctuated between 0.50 and 0.51 from March 2022 to March 2023. A sustained decline followed, with the ratio dropping to 0.46 by September 2024. Although a marginal increase to 0.48 occurred in the first half of 2025, the ratio reached its lowest point of 0.44 by March 2026. This progression indicates an enhanced solvency position and a reduced reliance on borrowed capital relative to the total size of the enterprise.
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Debt to Assets (including Operating Lease Liability)
Union Pacific Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Debt due within one year | 867) | 1,520) | 1,521) | 2,522) | 2,227) | 1,425) | 1,652) | 727) | 733) | 1,423) | 1,724) | 1,745) | 2,592) | 1,678) | 1,678) | 2,334) | 1,559) | ||||||
| Debt due after one year | 29,784) | 30,294) | 30,286) | 30,291) | 30,615) | 29,767) | 29,761) | 31,165) | 31,195) | 31,156) | 31,153) | 31,557) | 31,192) | 31,648) | 31,744) | 29,673) | 30,680) | ||||||
| Total debt | 30,651) | 31,814) | 31,807) | 32,813) | 32,842) | 31,192) | 31,413) | 31,892) | 31,928) | 32,579) | 32,877) | 33,302) | 33,784) | 33,326) | 33,422) | 32,007) | 32,239) | ||||||
| Noncurrent operating lease liabilities | 619) | 738) | 764) | 831) | 758) | 925) | 934) | 988) | 1,016) | 1,245) | 1,244) | 1,217) | 1,233) | 1,300) | 1,303) | 1,295) | 1,291) | ||||||
| Total debt (including operating lease liability) | 31,270) | 32,552) | 32,571) | 33,644) | 33,600) | 32,117) | 32,347) | 32,880) | 32,944) | 33,824) | 34,121) | 34,519) | 35,017) | 34,626) | 34,725) | 33,302) | 33,530) | ||||||
| Total assets | 69,644) | 69,698) | 68,647) | 68,576) | 68,492) | 67,715) | 67,570) | 67,817) | 67,266) | 67,132) | 66,540) | 66,033) | 65,968) | 65,449) | 65,343) | 64,440) | 64,051) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.45 | 0.47 | 0.47 | 0.49 | 0.49 | 0.47 | 0.48 | 0.48 | 0.49 | 0.50 | 0.51 | 0.52 | 0.53 | 0.53 | 0.53 | 0.52 | 0.52 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.43 | 0.43 | 0.44 | 0.44 | 0.44 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | ||||||
| Uber Technologies Inc. | 0.21 | 0.20 | 0.19 | 0.20 | 0.19 | 0.19 | 0.27 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.34 | 0.35 | 0.36 | 0.36 | 0.34 | ||||||
| United Airlines Holdings Inc. | 0.38 | 0.41 | 0.41 | 0.42 | 0.43 | 0.45 | 0.46 | 0.47 | 0.48 | 0.52 | 0.50 | 0.51 | 0.53 | 0.55 | 0.56 | 0.56 | 0.58 | ||||||
| United Parcel Service Inc. | 0.40 | 0.39 | 0.41 | 0.41 | 0.37 | 0.37 | 0.38 | 0.38 | 0.36 | 0.38 | 0.36 | 0.36 | 0.37 | 0.33 | 0.34 | 0.34 | 0.36 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 31,270 ÷ 69,644 = 0.45
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent improvement over the analyzed period from March 31, 2022, to March 31, 2026. This strengthening of the balance sheet is characterized by a simultaneous reduction in total liabilities and a steady expansion of the asset base, resulting in a lower reliance on debt to finance assets.
- Total Debt Trends
- Total debt, including operating lease liabilities, experienced an initial increase, peaking at 35,017 million US dollars in March 2023. Following this peak, a general downward trajectory is observed, with debt levels declining to 31,270 million US dollars by March 2026. Despite a brief period of stabilization and a slight increase in the first half of 2025, the overall trend indicates a disciplined reduction in leveraged obligations.
- Total Asset Growth
- The asset base demonstrates a steady upward trend throughout the period. Total assets grew from 64,051 million US dollars in March 2022 to 69,644 million US dollars by March 2026. This growth remained consistent regardless of fluctuations in debt levels, indicating a continuous expansion of the company's resource base.
- Debt to Assets Ratio Interpretation
- The debt to assets ratio reflects the combined effect of decreasing debt and increasing assets. The ratio began at 0.52 in March 2022 and trended downward to a low of 0.45 by March 2026. A notable period of improvement occurred between December 2023 and December 2024, where the ratio dropped from 0.50 to 0.47. Although a temporary increase to 0.49 occurred in early 2025, the long-term progression indicates a reduced solvency risk and an improved financial position.
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Financial Leverage
Union Pacific Corp., financial leverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 69,644) | 69,698) | 68,647) | 68,576) | 68,492) | 67,715) | 67,570) | 67,817) | 67,266) | 67,132) | 66,540) | 66,033) | 65,968) | 65,449) | 65,343) | 64,440) | 64,051) | ||||||
| Common shareholders’ equity | 19,418) | 18,467) | 17,304) | 16,258) | 16,039) | 16,890) | 16,584) | 16,489) | 15,665) | 14,788) | 14,004) | 13,194) | 12,454) | 12,163) | 11,743) | 12,710) | 11,897) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 3.59 | 3.77 | 3.97 | 4.22 | 4.27 | 4.01 | 4.07 | 4.11 | 4.29 | 4.54 | 4.75 | 5.00 | 5.30 | 5.38 | 5.56 | 5.07 | 5.38 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 3.18 | 3.12 | 3.18 | 3.23 | 3.19 | 3.15 | 3.26 | 3.29 | 3.30 | 3.34 | 3.47 | 3.55 | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | ||||||
| Uber Technologies Inc. | 2.42 | 2.29 | 2.25 | 2.48 | 2.40 | 2.38 | 3.19 | 3.36 | 3.58 | 3.44 | 3.84 | 3.93 | 4.32 | 4.37 | 4.98 | 4.66 | 3.68 | ||||||
| United Airlines Holdings Inc. | 5.10 | 5.00 | 5.33 | 5.77 | 6.03 | 5.84 | 6.35 | 6.96 | 7.83 | 7.63 | 8.26 | 9.52 | 10.56 | 9.77 | 14.08 | 17.76 | 19.05 | ||||||
| United Parcel Service Inc. | 4.56 | 4.50 | 4.51 | 4.50 | 4.37 | 4.19 | 4.05 | 4.08 | 4.00 | 4.09 | 3.67 | 3.51 | 3.60 | 3.59 | 4.10 | 4.30 | 4.55 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Common shareholders’ equity
= 69,644 ÷ 19,418 = 3.59
2 Click competitor name to see calculations.
An analysis of the financial leverage for Union Pacific Corp. reveals a consistent improvement in solvency and a strategic shift toward a more equity-heavy capital structure between March 2022 and March 2026.
- Financial Leverage Trend
- The financial leverage ratio exhibits a marked downward trajectory, declining from 5.38 in March 2022 to 3.59 by March 2026. Following a peak of 5.56 in September 2022, the ratio trended lower, reflecting a systematic reduction in the company's reliance on debt to finance its asset base and a corresponding decrease in financial risk.
- Equity Growth Dynamics
- The primary driver of the improved leverage position is the substantial expansion of common shareholders' equity. Equity rose from $11,897 million in March 2022 to $19,418 million in March 2026. This steady increase indicates a strengthening of the internal capital base, which has effectively reduced the proportion of total assets funded by liabilities.
- Asset Base Analysis
- Total assets grew steadily from $64,051 million in March 2022 to $69,644 million in March 2026. Because the growth rate of shareholders' equity significantly outpaced the growth rate of total assets, the resulting leverage ratio contracted. This divergence suggests that asset expansion during this period was predominantly supported by equity rather than additional borrowing.
- Solvency Performance
- The transition from a leverage ratio above 5.0 in 2022 to below 4.0 by late 2025 and early 2026 indicates a more conservative financial posture. This trend suggests enhanced long-term solvency and a greater capacity to absorb financial shocks or fund future investments without excessive dependence on external creditors.
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Interest Coverage
Union Pacific Corp., interest coverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 1,701) | 1,848) | 1,788) | 1,876) | 1,626) | 1,762) | 1,671) | 1,673) | 1,641) | 1,652) | 1,528) | 1,569) | 1,630) | 1,638) | 1,895) | 1,835) | 1,630) | ||||||
| Add: Income tax expense | 528) | 560) | 530) | 437) | 501) | 519) | 518) | 511) | 499) | 532) | 421) | 389) | 512) | 533) | 547) | 507) | 487) | ||||||
| Add: Interest expense | 320) | 325) | 327) | 335) | 322) | 312) | 314) | 319) | 324) | 331) | 334) | 339) | 336) | 333) | 315) | 316) | 307) | ||||||
| Earnings before interest and tax (EBIT) | 2,549) | 2,733) | 2,645) | 2,648) | 2,449) | 2,593) | 2,503) | 2,503) | 2,464) | 2,515) | 2,283) | 2,297) | 2,478) | 2,504) | 2,757) | 2,658) | 2,424) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | 8.09 | 8.00 | 7.97 | 7.94 | 7.93 | 7.93 | 7.75 | 7.47 | 7.20 | 7.14 | 7.13 | 7.59 | 8.00 | 8.14 | 8.40 | 8.34 | 8.53 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Uber Technologies Inc. | 11.95 | 14.06 | 15.41 | 14.78 | 13.09 | 8.81 | 9.95 | 5.18 | 4.12 | 4.74 | 2.67 | 0.55 | -4.42 | -15.49 | -15.64 | -19.05 | -13.64 | ||||||
| United Airlines Holdings Inc. | 5.15 | 4.69 | 4.54 | 4.43 | 4.65 | 3.97 | 3.40 | 3.34 | 3.02 | 2.91 | 3.09 | 2.92 | 2.44 | 1.59 | 0.40 | 0.06 | -0.56 | ||||||
| United Parcel Service Inc. | 7.38 | 8.04 | 8.06 | 8.86 | 9.32 | 9.59 | 9.74 | 9.29 | 10.58 | 11.92 | 15.44 | 18.59 | 20.44 | 22.06 | 21.60 | 21.21 | 20.95 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= (2,549 + 2,733 + 2,645 + 2,648)
÷ (320 + 325 + 327 + 335)
= 8.09
2 Click competitor name to see calculations.
The solvency analysis of the interest coverage ratio reveals a period of moderate volatility followed by a steady recovery phase. The ratio experienced a gradual contraction throughout 2022 and the first three quarters of 2023, reaching a minimum value of 7.13 in September 2023, before initiating a consistent upward trajectory that extended through March 2026.
- Earnings Before Interest and Tax (EBIT) Trends
- Earnings before interest and tax demonstrated periodic fluctuations, ranging from a low of 2,283 million USD in September 2023 to a peak of 2,757 million USD in September 2022. A notable contraction occurred during the mid-2023 period, which coincided with the lowest points of the interest coverage ratio. Subsequent growth was observed starting in late 2023, with EBIT stabilizing and eventually increasing to 2,733 million USD by December 2025.
- Interest Expense Stability
- Interest expenses remained relatively stable throughout the analyzed period, fluctuating within a narrow band between 307 million USD and 339 million USD. The highest costs were recorded between March 2023 and June 2023, while the most recent quarters show a slight reduction, settling at 320 million USD by March 2026. This stability indicates a consistent debt service obligation that does not significantly deviate regardless of operational earnings shifts.
- Interest Coverage Ratio Dynamics
- The interest coverage ratio followed a U-shaped trajectory. From a high of 8.53 in March 2022, the ratio declined steadily to 7.13 by September 2023, driven primarily by the convergence of declining EBIT and peaking interest expenses. Following this trough, the ratio improved sequentially for over two years, returning to a level of 8.09 by March 2026. The current trend suggests an enhanced capacity to meet interest obligations relative to operating profits.
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