Union Pacific Corp. (NYSE:UNP)

Operating Profit Margin

The operating profit margin exhibited a fluctuating yet overall stable trend across the observed periods. It peaked at 42.83% at the end of 2021, followed by a decline to 37.65% in 2023. However, there was a recovery in the last period, rising again to 40.05% by the end of 2024. This suggests some volatility in operational efficiency but maintains a relatively high margin level above 37% throughout.

Net Profit Margin

The net profit margin showed a slight upward movement initially, increasing from 27.38% in 2020 to 29.92% in 2021. This was followed by a gradual decline to 26.45% by 2023, with a moderate rebound to 27.82% in 2024. The margin retained a narrow range between roughly 26% and 30%, indicating consistent profitability with minor fluctuations in net income relative to revenue.

Return on Equity (ROE)

Return on equity revealed considerable variation. There was a strong upward trend from 31.54% in 2020 to a peak of 57.54% in 2022, highlighting a period of significantly enhanced shareholder returns. After this peak, ROE decreased to 43.14% in 2023 and further to 39.95% in 2024, yet the levels remained robust compared to the initial period. This pattern indicates potentially cyclical performance dynamics, with exceptional returns mid-period followed by normalization.

Return on Assets (ROA)

Return on assets displayed a gradual improvement over the periods. It started at 8.57% in 2020, increased to 10.69% in 2022, followed by a slight decline in 2023 to 9.5%, and a marginal recovery to 9.96% by the end of 2024. The trend suggests effective asset utilization with slight year-to-year variation, maintaining returns close to or above 9.5% in later years.

Operating Income

The operating income demonstrates an overall increasing trend over the five-year period, rising from 7,834 million USD in 2020 to 9,713 million USD in 2024. There is a notable increase from 2020 to 2022, peaking at 9,917 million USD. This is followed by a decline in 2023 to 9,082 million USD, before slightly recovering in 2024.

Operating Revenues

Operating revenues show a consistent upward trajectory from 19,533 million USD in 2020 to 24,250 million USD in 2024. The revenue growth is steady year-over-year, with the most significant increase occurring between 2021 and 2022. There is a slight decrease noted in 2023, after which revenues rise marginally in 2024.

Operating Profit Margin

The operating profit margin fluctuates throughout the period, starting at 40.11% in 2020 and reaching its highest point at 42.83% in 2021. It then declines considerably to 37.65% in 2023 before recovering to 40.05% by 2024. This pattern suggests variability in cost structures or pricing power despite increasing revenues and generally rising operating income.

The financial data over the analyzed periods reveal several important trends and patterns pertinent to the overall financial performance.

Net Income

The net income demonstrates a general upward trajectory from 2020 through 2024, with initial growth from 5,349 million US dollars in 2020 to a peak of 6,998 million in 2022. There is a decline in 2023 to 6,379 million, followed by a rebound to 6,747 million in 2024. Despite the fluctuation in the last two years, the overall trend indicates growth in profitability over the five-year timeframe.

Operating Revenues

Operating revenues have experienced consistent growth from 19,533 million US dollars in 2020 to a high of 24,875 million in 2022. However, there is a slight decrease in 2023 to 24,119 million, with a marginal recovery to 24,250 million in 2024. The pattern mirrors the net income trend, showing robust revenue growth initially, followed by stabilization in the later years.

Net Profit Margin

The net profit margin shows some variability but remains relatively stable, ranging between approximately 26.45% and 29.92%. It peaked in 2021 at 29.92%, then gradually declined to 26.45% in 2023, with a modest recovery to 27.82% in 2024. This indicates that while revenues and net income have generally increased, profitability relative to revenues has experienced mild compression, particularly after 2021.

Overall, the analyzed data depict a company with growing revenues and net income through the majority of the period, with slight performance softening in 2023 but partial recovery in 2024. The stability of the net profit margin suggests consistent cost control and efficiency, despite fluctuating external conditions or operational challenges.

Net Income Trend

Net income exhibited a general upward trend from 2020 to 2024, rising from 5,349 million US dollars to 6,747 million US dollars. The highest net income was recorded in 2022 at 6,998 million US dollars, followed by a slight decrease in 2023 to 6,379 million US dollars, and a subsequent recovery in 2024.

Common Shareholders’ Equity Trend

Common shareholders’ equity showed a fluctuating pattern. Starting at 16,958 million US dollars in 2020, it declined steadily through 2021 and 2022, reaching a low of 12,163 million US dollars. However, equity then increased in the following years, rising to 14,788 million in 2023 and further to 16,890 million in 2024, nearly returning to the initial level observed in 2020.

Return on Equity (ROE) Analysis

Return on equity displayed significant volatility over the period. It initially increased sharply from 31.54% in 2020 to a peak of 57.54% in 2022. After this peak, ROE declined to 43.14% in 2023 and further to 39.95% in 2024. Despite the downward trend in the final years, the ROE remained well above the starting point, indicating that profitability relative to shareholder equity was robust throughout the period.

Overall Insights

The data suggests that net income growth was moderately strong, though not without fluctuation. Shareholders’ equity experienced a mid-term decline followed by a recovery, which may indicate capital management or operational adjustments during the period. The ROE trend implies that the company was increasingly efficient at generating profit from equity until 2022, but this efficiency pulled back thereafter, suggesting possible changes in profit margins, equity structure, or both.

Net Income

The net income showed an increasing trend from 2020 to 2022, rising from 5,349 million USD in 2020 to 6,998 million USD in 2022. However, there was a decline in 2023, with net income dropping to 6,379 million USD, before recovering somewhat to 6,747 million USD in 2024. Despite the dip in 2023, the overall trajectory remains positive over the five-year period.

Total Assets

Total assets exhibited steady growth throughout the entire period. The value increased each year from 62,398 million USD in 2020 to 67,715 million USD in 2024. The increases were relatively consistent, without any noticeable declines or volatility.

Return on Assets (ROA)

The return on assets percentage followed a pattern similar to that of net income. It improved from 8.57% in 2020 to a peak of 10.69% in 2022, indicating increased efficiency in generating profit from assets. This was followed by a decrease to 9.5% in 2023, after which it partially rebounded to 9.96% in 2024. The fluctuations suggest some variability in profitability relative to asset base yet maintain a generally favorable level above 8.5%.