Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Union Pacific Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An analysis of long-term activity ratios reveals fluctuating performance over the five-year period. Generally, the company demonstrates a moderate ability to generate revenue from its assets and equity, with some indicators suggesting a slight decline in efficiency towards the end of the observed timeframe.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited an initial increase from 0.40 in 2021 to 0.44 in 2022, indicating improved efficiency in utilizing fixed assets to generate sales. However, this was followed by a slight decrease to 0.42 in 2023 and remained stable at 0.42 in 2024 before declining further to 0.41 in 2025. This suggests a potential weakening in the relationship between fixed asset investment and revenue generation in the later years.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also increased from 0.38 in 2021 to 0.43 in 2022. The trend then mirrored the standard ratio, decreasing to 0.41 in 2023, holding at 0.41 in 2024, and finally decreasing to 0.40 in 2025. The inclusion of operating lease and right-of-use assets does not significantly alter the observed trend, suggesting the changes are reflective of broader operational efficiency.
- Total Asset Turnover
- The total asset turnover ratio increased from 0.34 in 2021 to 0.38 in 2022, signifying a more effective utilization of all assets to generate revenue. However, the ratio then decreased to 0.36 in 2023 and remained constant at 0.36 in 2024, before declining to 0.35 in 2025. This indicates a gradual reduction in the company’s ability to generate sales from its total asset base.
- Equity Turnover
- The equity turnover ratio experienced a substantial increase from 1.54 in 2021 to 2.05 in 2022, demonstrating a significant improvement in generating revenue per dollar of equity. Subsequently, the ratio decreased to 1.63 in 2023, continued to decline to 1.44 in 2024, and further decreased to 1.33 in 2025. This consistent downward trend suggests a diminishing return on equity investment in terms of revenue generation.
Overall, the observed trends suggest a period of initial improvement in asset utilization followed by a gradual decline in efficiency across most measured ratios. The decreasing equity turnover is particularly noteworthy, indicating a potential need to evaluate strategies for improving returns on equity.
AI Ask an analyst for more
Net Fixed Asset Turnover
Union Pacific Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 24,510) | 24,250) | 24,119) | 24,875) | 21,804) | |
| Properties, net | 59,645) | 58,343) | 57,398) | 56,038) | 54,871) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.41 | 0.42 | 0.42 | 0.44 | 0.40 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| FedEx Corp. | 2.11 | 2.11 | 2.22 | 2.45 | 2.35 | |
| Uber Technologies Inc. | 27.42 | 22.53 | 17.98 | 15.31 | 9.42 | |
| United Airlines Holdings Inc. | 1.28 | 1.33 | 1.35 | 1.31 | 0.77 | |
| United Parcel Service Inc. | 2.35 | 2.45 | 2.46 | 2.89 | 2.91 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Transportation | 1.67 | 1.67 | 1.67 | 1.79 | 1.55 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 2.84 | 2.76 | 2.86 | 2.94 | 2.72 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Operating revenues ÷ Properties, net
= 24,510 ÷ 59,645 = 0.41
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a relatively stable pattern over the five-year period, with minor fluctuations. Operating revenues demonstrate an initial increase followed by a slight decline and subsequent stabilization, while properties, net, consistently increase year over year. The interplay between these two factors shapes the observed turnover ratio trend.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 0.40 in 2021 to 0.44 in 2022, indicating improved efficiency in generating revenue from fixed assets. This improvement suggests a more effective utilization of the company’s property, plant, and equipment. However, the ratio subsequently decreased to 0.42 in 2023 and remained at that level in 2024. A further slight decrease to 0.41 is observed in 2025. This suggests a leveling off, and a minor reduction in the efficiency of revenue generation relative to fixed assets after the initial improvement.
- Operating Revenues
- Operating revenues increased significantly from US$21,804 million in 2021 to US$24,875 million in 2022, contributing to the initial rise in the net fixed asset turnover ratio. Revenues then experienced a decrease to US$24,119 million in 2023, which partially offset the positive impact of the increasing fixed asset base. Revenues stabilized in 2024 at US$24,250 million and experienced a modest increase to US$24,510 million in 2025. The relatively flat revenue trend in the later years likely contributed to the stabilization and slight decline in the net fixed asset turnover ratio.
- Properties, Net
- Properties, net, consistently increased throughout the period, rising from US$54,871 million in 2021 to US$59,645 million in 2025. This continuous growth in fixed assets, coupled with the revenue trends, explains the observed fluctuations in the net fixed asset turnover ratio. The increasing asset base, without a corresponding proportional increase in revenue, exerts downward pressure on the ratio.
In summary, while the company initially improved its efficiency in utilizing fixed assets, the subsequent stabilization and slight decline in the net fixed asset turnover ratio suggest that revenue growth has not kept pace with the expansion of the fixed asset base. Continued monitoring of both revenue generation and asset management strategies is warranted.
AI Ask an analyst for more
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Union Pacific Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 24,510) | 24,250) | 24,119) | 24,875) | 21,804) | |
| Properties, net | 59,645) | 58,343) | 57,398) | 56,038) | 54,871) | |
| Operating lease assets | 1,036) | 1,297) | 1,643) | 1,672) | 1,787) | |
| Properties, net (including operating lease, right-of-use asset) | 60,681) | 59,640) | 59,041) | 57,710) | 56,658) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.40 | 0.41 | 0.41 | 0.43 | 0.38 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| FedEx Corp. | 1.51 | 1.50 | 1.55 | 1.71 | 1.64 | |
| Uber Technologies Inc. | 17.28 | 14.14 | 11.25 | 9.03 | 5.39 | |
| United Airlines Holdings Inc. | 1.16 | 1.22 | 1.23 | 1.17 | 0.67 | |
| United Parcel Service Inc. | 2.11 | 2.20 | 2.20 | 2.61 | 2.63 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Transportation | 1.45 | 1.45 | 1.44 | 1.53 | 1.33 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.49 | 2.41 | 2.49 | 2.54 | 2.34 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenues ÷ Properties, net (including operating lease, right-of-use asset)
= 24,510 ÷ 60,681 = 0.40
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using properties net of accumulated depreciation and including operating lease right-of-use assets, demonstrates a fluctuating pattern over the five-year period. Operating revenues exhibited an initial increase followed by a slight decline and subsequent stabilization, while properties net increased consistently throughout the period.
- Net Fixed Asset Turnover Trend
- The ratio increased from 0.38 in 2021 to 0.43 in 2022, indicating improved efficiency in generating revenue from fixed assets. However, this improvement was not sustained, as the ratio decreased to 0.41 in 2023 and remained relatively stable at 0.41 in 2024. A further slight decrease to 0.40 was observed in 2025.
- Revenue Performance
- Operating revenues increased from US$21,804 million in 2021 to US$24,875 million in 2022, contributing to the initial rise in the turnover ratio. Revenues then experienced a minor decrease to US$24,119 million in 2023 before stabilizing around US$24,250 million in 2024 and increasing slightly to US$24,510 million in 2025. This suggests a period of revenue growth followed by consolidation.
- Asset Base Evolution
- Properties, net, consistently increased from US$56,658 million in 2021 to US$60,681 million in 2025. This continuous growth in the asset base, coupled with the stabilization and slight decline in the net fixed asset turnover ratio, suggests that the company is investing in fixed assets at a rate that is not proportionally translating into increased revenue generation. The consistent asset growth may indicate expansion plans or significant capital expenditures.
The observed trend suggests a potential diminishing return on fixed asset investment. While revenue has remained relatively stable in recent years, the continued increase in the asset base is exerting downward pressure on the net fixed asset turnover ratio. Further investigation into the nature of these asset investments and their corresponding revenue contributions would be beneficial.
AI Ask an analyst for more
Total Asset Turnover
Union Pacific Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 24,510) | 24,250) | 24,119) | 24,875) | 21,804) | |
| Total assets | 69,698) | 67,715) | 67,132) | 65,449) | 63,525) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.35 | 0.36 | 0.36 | 0.38 | 0.34 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| FedEx Corp. | 1.00 | 1.01 | 1.03 | 1.09 | 1.01 | |
| Uber Technologies Inc. | 0.84 | 0.86 | 0.96 | 0.99 | 0.45 | |
| United Airlines Holdings Inc. | 0.77 | 0.77 | 0.76 | 0.67 | 0.36 | |
| United Parcel Service Inc. | 1.21 | 1.30 | 1.28 | 1.41 | 1.40 | |
| Total Asset Turnover, Sector | ||||||
| Transportation | 0.85 | 0.87 | 0.88 | 0.92 | 0.76 | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.66 | 0.65 | 0.67 | 0.66 | 0.58 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Operating revenues ÷ Total assets
= 24,510 ÷ 69,698 = 0.35
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a fluctuating pattern over the five-year period. Initial observation reveals an increase followed by relative stabilization and a slight decline.
- Total Asset Turnover Trend
- The ratio increased from 0.34 in 2021 to 0.38 in 2022, indicating improved efficiency in generating revenue from its asset base. This suggests the company utilized its assets more effectively to produce sales during this period.
- Following the increase, the ratio decreased slightly to 0.36 in 2023 and remained constant at 0.36 in 2024. This stabilization suggests a leveling off of asset utilization efficiency. While not a decline, the lack of further improvement may warrant investigation.
- A further slight decrease to 0.35 is observed in 2025. This indicates a marginal reduction in the efficiency with which assets are being used to generate revenue, although the change is relatively small.
The observed fluctuations in the total asset turnover ratio correlate with changes in operating revenues and total assets. While operating revenues generally increased over the period, the growth in total assets was consistently higher, potentially contributing to the stabilization and eventual slight decline in the ratio. Further investigation into the composition of asset growth is recommended to understand the drivers behind these trends.
- Relationship to Operating Revenues and Total Assets
- Operating revenues increased from US$21,804 million in 2021 to US$24,510 million in 2025, representing a growth of approximately 12.4%.
- Total assets experienced a more substantial increase, growing from US$63,525 million in 2021 to US$69,698 million in 2025, a growth of approximately 9.7%. The faster growth of assets relative to revenues likely contributed to the observed trends in the total asset turnover ratio.
In conclusion, the company demonstrated improved asset utilization in 2022, but subsequent years show a stabilization and minor decrease in efficiency. The continued growth of total assets at a rate exceeding revenue growth appears to be a contributing factor. Monitoring these trends and analyzing the underlying asset composition will be crucial for assessing future performance.
AI Ask an analyst for more
Equity Turnover
Union Pacific Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 24,510) | 24,250) | 24,119) | 24,875) | 21,804) | |
| Common shareholders’ equity | 18,467) | 16,890) | 14,788) | 12,163) | 14,161) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.33 | 1.44 | 1.63 | 2.05 | 1.54 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| FedEx Corp. | 3.13 | 3.18 | 3.46 | 3.75 | 3.47 | |
| Uber Technologies Inc. | 1.92 | 2.04 | 3.31 | 4.34 | 1.21 | |
| United Airlines Holdings Inc. | 3.87 | 4.50 | 5.76 | 6.52 | 4.90 | |
| United Parcel Service Inc. | 5.46 | 5.45 | 5.26 | 5.07 | 6.83 | |
| Equity Turnover, Sector | ||||||
| Transportation | 2.97 | 3.19 | 3.76 | 4.16 | 3.40 | |
| Equity Turnover, Industry | ||||||
| Industrials | 2.88 | 2.92 | 3.33 | 3.06 | 2.63 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Operating revenues ÷ Common shareholders’ equity
= 24,510 ÷ 18,467 = 1.33
2 Click competitor name to see calculations.
The equity turnover ratio exhibits a fluctuating pattern over the five-year period. Initially, the ratio increased significantly before declining steadily. Operating revenues demonstrate an overall upward trend, while common shareholders’ equity shows more volatility.
- Equity Turnover
- The equity turnover ratio began at 1.54 in 2021, indicating that for every dollar of equity, the company generated $1.54 in revenue. This ratio rose substantially to 2.05 in 2022, suggesting improved efficiency in utilizing shareholder equity to generate sales. However, a subsequent decline was observed, with the ratio decreasing to 1.63 in 2023, 1.44 in 2024, and further to 1.33 in 2025. This downward trend suggests a decreasing ability to generate revenue from each dollar of equity.
- Operating Revenues
- Operating revenues increased from US$21,804 million in 2021 to US$24,875 million in 2022, representing a significant growth period. While revenues decreased slightly to US$24,119 million in 2023, they recovered to US$24,250 million in 2024 and continued to rise to US$24,510 million in 2025. This indicates a generally positive revenue trajectory, despite some short-term fluctuations.
- Common Shareholders’ Equity
- Common shareholders’ equity experienced a decrease from US$14,161 million in 2021 to US$12,163 million in 2022. A recovery was then noted, with equity increasing to US$14,788 million in 2023, US$16,890 million in 2024, and reaching US$18,467 million in 2025. This suggests a period of equity reduction followed by consistent growth, potentially influenced by profitability and retained earnings.
The combination of increasing revenues and growing equity, coupled with the declining equity turnover ratio, suggests that while the company is generating more revenue and building equity, it is becoming less efficient in its utilization of equity to produce those revenues. Further investigation into the drivers of revenue growth and equity changes may be warranted.
AI Ask an analyst for more