Union Pacific Corp. (NYSE:UNP)

Debt to Equity

The debt to equity ratio exhibits an overall increasing trend from early 2020 through early 2022, peaking at 2.85 in September 2022. Afterward, a gradual decline is observed, reaching around 2.02 in June 2025. This suggests that the company's relative debt level increased significantly during the initial periods but has since been moderately reduced.

Debt to Equity (Including Operating Lease Liability)

This ratio mirrors the trend of the traditional debt to equity ratio, with slightly higher values due to the inclusion of operating lease liabilities. It follows an upward trajectory until late 2022, with a peak around 2.96, followed by a decline through mid-2025. The similarity in patterns indicates that lease liabilities have a consistent proportion relative to total debt.

Debt to Capital

Debt to capital ratios rise from values near 0.62 in early 2020 to peaks around 0.74 during late 2022 and early 2023, indicating an increased share of debt in the company's capital structure during this period. Post peak, a mild downward movement is noted, stabilizing near 0.67 by mid-2025, showing some deleveraging or capital structure adjustment.

Debt to Capital (Including Operating Lease Liability)

This ratio follows closely the trend of the standard debt to capital ratio, slightly elevated due to operating leases impact. The pattern confirms the mixed use of leased assets as part of financed capital, with the ratio rising until late 2022 before declining and leveling off by mid-2025.

Debt to Assets

The debt to assets ratio increases from roughly 0.43 in early 2020 to peaks slightly above 0.50 near late 2022, showing greater reliance on debt financing relative to total assets during this period. A gradual decrease follows, reaching about 0.48 in mid-2025, suggesting a reduction in asset financing by debt.

Debt to Assets (Including Operating Lease Liability)

This ratio shows a similar pattern to the standard debt to assets measure, with consistently higher values due to lease liabilities. It signifies that lease obligations constitute a stable and significant addition to total liabilities linked to asset financing over the period.

Financial Leverage

Financial leverage trends upward sharply from an initial value around 3.7 in early 2020 to a peak above 5.5 in late 2022, indicating increased use of debt relative to equity in the capital structure. Following the peak, a downward trend is evident, declining to approximately 4.2 by mid-2025. This pattern reveals initial aggressive leverage expansion followed by efforts to moderate leverage levels.

Interest Coverage

Interest coverage shows strong and relatively stable values starting from 7.12 in late 2020, rising modestly to a high of approximately 8.53 in mid-2022. It then diminishes gradually but remains above 7.9 through mid-2025. This stability suggests robust earnings capacity to meet interest obligations despite fluctuations in leverage, indicating sound debt service ability throughout the period.

Total Debt

The total debt exhibited some variability over the periods analyzed. Beginning at approximately $27.9 billion in the first quarter of 2020, it marginally increased through 2021 and into early 2022, peaking around $33.4 billion in the third quarter of 2022. Thereafter, the debt showed a gradual decline for the remainder of 2023 and into mid-2024. However, in the final quarters presented, there was a slight increase again, closing near $32.8 billion by the second quarter of 2025. Overall, the total debt remained relatively elevated compared to early 2020 levels, suggesting active debt management but sustained leverage.

Common Shareholders’ Equity

Common shareholders’ equity demonstrated a general downward trend during 2020 and 2021, decreasing from about $16.0 billion at the start of 2020 to a low near $11.7 billion in the third quarter of 2021. From late 2021 onward, equity began a recovery, increasing steadily through 2023 and into the first half of 2024, reaching a peak of approximately $16.5 billion in the third quarter of 2024. Nevertheless, by mid-2025, equity showed a minor correction, slightly falling back to around $16.3 billion. This pattern indicates periods of equity erosion followed by rebuilding, which may reflect fluctuating earnings, dividends, share repurchases, or other equity-related activities.

Debt to Equity Ratio

The debt to equity ratio fluctuated considerably over the time frame. The ratio started at approximately 1.74 in the first quarter of 2020, declined slightly until near the end of 2020, then increased sharply during 2021 to surpass 2.1 by the fourth quarter. The ratio peaked at around 2.85 in the third quarter of 2022, reflecting heightened leverage coinciding with both elevated debt and lower equity levels. Subsequently, the ratio trended downward throughout 2023 and early 2024, dropping to about 1.85 in the first quarter of 2025, indicative of a strengthening equity base or reduced debt proportionality. The ratio then edged upward slightly again toward mid-2025, ending near 2.02. This dynamic suggests active fluctuations in capital structure management, balancing debt and equity financing.

Total Debt (including operating lease liability)

The total debt experienced a general upward trend from March 31, 2020, through March 31, 2022, increasing from $29,215 million to a peak of $33,530 million. Following this peak, the total debt exhibited relative stability with slight fluctuations, maintaining levels above $33,000 million until December 31, 2022. Thereafter, a gradual decline is observed, decreasing to approximately $33,600 million by June 30, 2025, with minor variations in between these dates.

Common Shareholders’ Equity

Shareholders’ equity displayed an initial increase from $15,991 million as of March 31, 2020, reaching $17,199 million by September 30, 2020, followed by a decrease to $14,161 million at December 31, 2021. A significant drop was noted by March 31, 2022, when equity fell to $11,897 million. Subsequent quarterly data indicate a recovery phase, with equity steadily rising to a peak of $16,890 million by March 31, 2025. However, some volatility is visible towards the latest periods, with a slight decrease to $16,039 million by March 31, 2025, before a marginal uptick to $16,258 million as of June 30, 2025.

Debt to Equity Ratio (including operating lease liability)

This ratio presents a declining trend from 1.83 in March 31, 2020, to a low of 1.65 by December 31, 2020, indicating an improvement in leverage relative to equity in that period. Subsequently, the ratio increased notably to a peak of 2.96 by September 30, 2022, reflecting a period of heightened leverage. After this peak, the ratio showed a consistent decline, reaching 1.90 by March 31, 2025, suggesting an improvement in the company’s financial structure. Minor fluctuations occurred near the end of the period, with the ratio slightly increasing to 2.07 by June 30, 2025.

General Observations

The company’s total debt increased initially but remained relatively stable with a minor declining trend toward the end of the period. Shareholders’ equity has shown greater volatility, with a notable dip in early 2022 followed by a steady recovery through the subsequent years. The debt to equity ratio reflects these movements, highlighting periods of increased leverage and subsequent deleveraging, pointing to active management of the company’s capital structure over time. The interplay between debt and equity changes evidences adjustments possibly aimed at optimizing the financial leverage and maintaining a balanced risk profile.

Total Debt

The total debt exhibits fluctuations over the periods analyzed, with values generally ranging between approximately 26,700 million US dollars and 33,800 million US dollars. Starting at around 27,876 million in the first quarter of 2020, the debt slightly increased to peak near 33,784 million in the first quarter of 2023, before showing a general downward trend with small fluctuations towards the end of the period, settling around 32,813 million by the second quarter of 2025. This indicates periods of increased leverage followed by efforts to reduce or stabilize debt levels.

Total Capital

Total capital shows a steady upward progression across the quarters. Beginning near 43,867 million in the first quarter of 2020, it increases consistently, reaching approximately 49,071 million by the second quarter of 2025. The persistent growth in total capital suggests ongoing capital investments or accumulation of equity, enhancing the company’s financial base over time.

Debt to Capital Ratio

The debt to capital ratio exhibits variability that somewhat mirrors the changes in total debt relative to total capital. Initially, the ratio decreases from 0.64 in the first quarter of 2020 to about 0.61 by the end of 2020, indicating a modest reduction in leverage. However, the ratio increases substantially to around 0.73 between 2021 and early 2023, signaling a period of higher leverage with debt constituting a larger proportion of total capital. After this peak, the ratio declines gradually, stabilizing near 0.67 by the second quarter of 2025. This trend reflects the company’s shifting balance between debt and capital financing, initially reducing leverage, then increasing it, followed by a moderate deleveraging phase.

Summary

Overall, the financial data reveals a company managing its capital structure with measurable adjustments in debt levels and capital base. The increase in total capital throughout the period suggests strategic growth or reinvestment, while changes in total debt and the debt to capital ratio point to cycles of borrowing and repayment. The recent stabilization of leverage ratios around 0.67 suggests a balanced approach to financing moving forward.

The analysis of the financial data reveals the following trends across the reported quarters:

Total debt (including operating lease liability)

The total debt shows a generally increasing trend from March 31, 2020, through to the end of the observed period. Initially, the debt was approximately 29.2 billion USD at the beginning of 2020, fluctuating slightly in the first half of the year. From March 2021 onward, there is a noticeable upward movement, reaching a peak above 35 billion USD in early 2023. Towards the latest quarters, there is a modest decline and stabilization with debt levels just above 33 billion USD.

Total capital (including operating lease liability)

Total capital demonstrates a steady increase throughout the periods under review. Starting near 45.2 billion USD in early 2020, the capital base grows incrementally, peaking around 49.9 billion USD by mid-2025. This indicates an overall expansion of the company’s capital structure over time, with no significant retracements.

Debt to capital ratio (including operating lease liability)

The debt to capital ratio presents some variability, initially decreasing slightly from 0.65 to 0.62 in early 2020, before trending upward through 2021 and 2022 peaking at approximately 0.75. After this peak, the ratio declines gradually to values around 0.66–0.67 by mid-2025. This pattern suggests that the company's leverage increased significantly in the 2021-2022 period but has since moderated somewhat, indicating a cautious approach towards debt relative to capital.

Overall, the data indicates that while total debt increased steadily over the observed periods, the total capital grew as well, slightly outpacing debt growth in the latter periods, which is reflected in the gradual reduction of leverage starting from 2023 onwards. The firm appears to have managed its capital structure to balance growth in liabilities with increases in capital, aiming to maintain a sustainable debt to capital ratio after a period of heightened leveraging.

The analyzed data reveals notable trends in the company's debt and asset management over a sequence of quarters from March 31, 2020, through June 30, 2025.

Total Debt

The total debt exhibited fluctuations throughout the observed periods. Starting at approximately US$27.9 billion in early 2020, the debt increased moderately and peaked near US$33.8 billion by March 2023. After this peak, a gradual decline is evident, with the debt level falling to about US$31.8 billion by the middle of 2025. This suggests a strategic approach to debt management, balancing between leveraging for growth and paying down liabilities.

Total Assets

Total assets demonstrated a generally upward trend over the period. Beginning at roughly US$62.2 billion in the first quarter of 2020, assets increased steadily, reaching approximately US$68.6 billion by mid-2025. The gradual asset growth highlights ongoing investments or asset acquisitions, reflecting expansion or sustained capital expenditure strategies.

Debt to Assets Ratio

The debt to assets ratio fluctuated between 0.43 and 0.51 during the observed timeframe, indicating variations in financial leverage. Initially, a decline from 0.45 to 0.43 was observed by the end of 2020. Subsequently, the ratio rose to around 0.51 in the early 2023 period, correlating with increased debt levels relative to assets. Following this peak, the ratio gradually decreased to approximately 0.46-0.48 through mid-2025, reflecting reduced reliance on debt relative to the asset base. This pattern suggests a responsive adjustment to the capital structure in varying market or operational conditions.

Overall, the company exhibits a dynamic balance between debt and assets, with a clear tendency to moderate debt following periods of increase. Asset growth remains consistent, supporting an overall stable financial position while maintaining manageable leverage.

Total Debt (Including Operating Lease Liability)

The total debt exhibited a fluctuating pattern over the observed periods. Initially, the debt remained relatively stable from March 31, 2020, to December 31, 2020, ranging between approximately 28,000 to 29,700 million US dollars. Starting in early 2021, there was a gradual increase, peaking near the end of 2021 and remaining elevated throughout 2022. From 2023 onwards, there was a general, albeit modest, declining trend in debt levels, with occasional minor fluctuations. Despite this decline, total debt still remained above the levels seen in early 2020.

Total Assets

Total assets showed a consistent upward trajectory during the entire period. Beginning around 62,000 million US dollars in early 2020, assets steadily increased each quarter, surpassing 68,000 million US dollars by mid-2025. This reflects a sustained growth in asset base over the timeframe, with no periods of significant decline.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt-to-assets ratio started at approximately 0.47 in the first quarter of 2020 and exhibited a slight decreasing trend toward the end of 2020, reaching a low of around 0.45. However, from early 2021 through 2022, the ratio increased, peaking near 0.53, indicating a relative rise in debt compared to assets. After this peak, the ratio gradually decreased over the subsequent quarters, moving back toward levels near 0.48 to 0.49 by mid-2025. This pattern denotes periods of increased leverage followed by moderate deleveraging, but overall the company maintained a leverage ratio close to 0.5 for most of the period.

Summary

The financial data reveal steady asset growth alongside fluctuating debt levels. The debt-to-assets ratio indicates a moderate leverage profile that increased moderately during 2021 and 2022 but showed signs of stabilization and slight reduction in later periods. This suggests prudent management of liabilities relative to asset growth, maintaining a balanced capital structure throughout the observed years.

Total assets

Total assets generally exhibit a steady and gradual increase over the observed periods. Starting at approximately 62.2 billion USD in March 2020, the asset base expands to around 68.6 billion USD by June 2025. This trend reflects moderate growth, with no sudden spikes or declines, suggesting a stable asset accumulation strategy over time.

Common shareholders’ equity

Common shareholders’ equity shows more variability compared to total assets. Initially, equity rises from about 16.0 billion USD in March 2020 to a peak of nearly 17.2 billion USD in September 2020. Then a notable decline occurs through December 2021, dropping to approximately 11.9 billion USD, indicating potential equity reduction events such as share buybacks or losses.

From March 2022 onward, equity experiences a recovery trend, climbing steadily to reach close to 16.3 billion USD by June 2025. The fluctuations imply phases of equity contraction followed by regain, reflecting changes in retained earnings or capital management strategies.

Financial leverage (ratio)

The financial leverage ratio demonstrates a clear upward spike followed by a gradual normalization. Starting at around 3.89 in March 2020, the ratio decreases slightly through Q4 2020 but then rises sharply to peak near 5.56 in September 2022. This peak corresponds with the period of equity decline, indicating increased reliance on debt financing relative to equity.

Subsequent periods show a steady decline in financial leverage, falling back to approximately 4.22 by June 2025. This reduction suggests an improvement in the capital structure, with either debt reduction or equity growth helping to lower leverage and potentially reduce financial risk.

The earnings before interest and tax (EBIT) demonstrated fluctuations over the observed quarters, revealing periods of both decline and recovery. Initially, EBIT decreased from 2,196 million USD in March 2020 to 1,785 million USD in June 2020, followed by a gradual increase reaching 2,523 million USD in December 2021. Subsequently, EBIT showed variability but generally maintained levels around 2,400 to 2,700 million USD through 2022 and 2023, with a notable slight dip to 2,283 million USD in September 2023. From December 2023 onwards, EBIT recovered and stabilized near 2,500 to 2,600 million USD by the end of the period in June 2025.

Interest expense exhibited a general upward trend throughout the period under review. Commencing at 278 million USD in March 2020, interest expense gradually increased to 339 million USD by June 2023. Despite minor fluctuations, the overall rise continued, culminating at 335 million USD by June 2025. This steady increase in interest expense may reflect higher borrowing costs or increased debt levels over time.

The interest coverage ratio, available from December 2020 onward, indicated a strong and relatively stable ability to service interest payments with earnings. Starting at 7.12, the ratio improved over the subsequent quarters, peaking at 8.53 in March 2022. Following a minor decline to 7.13 in September 2023, the ratio maintained a consistent level around 7.9 through June 2025. This stability suggests that despite the incremental rise in interest expense, the company sustained robust EBIT levels sufficient to comfortably cover interest obligations.

Overall, the data reflects a company managing to preserve earnings capacity amid increasing financial costs, as evidenced by the high and stable interest coverage ratio. The fluctuations in EBIT suggest responsiveness to market or operational conditions, while the steady increase in interest expenses merits ongoing observation in relation to debt management and cost of capital.