Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Union Pacific Corp., profitability ratios

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Union Pacific Corp.’s gross profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Union Pacific Corp.’s operating profit margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Union Pacific Corp.’s net profit margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Union Pacific Corp.’s ROE improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
ROA	A profitability ratio calculated as net income divided by total assets.	Union Pacific Corp.’s ROA improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Union Pacific Corp., gross profit margin calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Gross profit
	Operating revenues
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	CSX Corp.
	FedEx Corp.
	United Parcel Service Inc.

2018 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Operating revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Union Pacific Corp.’s gross profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.

Union Pacific Corp., operating profit margin calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Operating income
	Operating revenues
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	CSX Corp.
	FedEx Corp.
	United Parcel Service Inc.
	Operating Profit Margin, Sector
	Industrial Transportation
	Operating Profit Margin, Industry
	Industrials

2018 Calculations

¹ Operating profit margin = 100 × Operating income ÷ Operating revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Union Pacific Corp.’s operating profit margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Union Pacific Corp., net profit margin calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Net income
	Operating revenues
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	CSX Corp.
	FedEx Corp.
	United Parcel Service Inc.
	Net Profit Margin, Sector
	Industrial Transportation
	Net Profit Margin, Industry
	Industrials

2018 Calculations

¹ Net profit margin = 100 × Net income ÷ Operating revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Union Pacific Corp.’s net profit margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Union Pacific Corp., ROE calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Net income
	Common shareholders’ equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	CSX Corp.
	FedEx Corp.
	United Parcel Service Inc.
	ROE, Sector
	Industrial Transportation
	ROE, Industry
	Industrials

2018 Calculations

¹ ROE = 100 × Net income ÷ Common shareholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Union Pacific Corp.’s ROE improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Union Pacific Corp., ROA calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Net income
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	CSX Corp.
	FedEx Corp.
	United Parcel Service Inc.
	ROA, Sector
	Industrial Transportation
	ROA, Industry
	Industrials

2018 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	Union Pacific Corp.’s ROA improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

	Union Pacific Corp.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Union Pacific Corp. (UNP)

Profitability Analysis