Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Union Pacific Corp., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Union Pacific Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Union Pacific Corp. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Union Pacific Corp. payables turnover ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Union Pacific Corp. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Union Pacific Corp. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Union Pacific Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Union Pacific Corp. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Inventory Turnover
Union Pacific Corp., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of operating revenues | 4,065 | 3,276 | 4,361 | 4,974 | 4,254 | |
| Materials and supplies | 621 | 638 | 751 | 742 | 749 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 6.55 | 5.13 | 5.81 | 6.70 | 5.68 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| American Airlines Group Inc. | 7.14 | 4.36 | 7.18 | 8.72 | 8.16 | |
| CSX Corp. | 8.99 | 7.48 | 10.75 | 11.90 | 8.05 | |
| Delta Air Lines Inc. | 13.11 | 14.61 | 15.93 | 18.43 | 13.06 | |
| FedEx Corp. | 54.58 | 47.60 | 48.35 | 46.59 | 42.83 | |
| Norfolk Southern Corp. | 11.58 | 10.05 | 10.98 | 13.61 | 10.15 | |
| United Parcel Service Inc. | 37.72 | 35.67 | 37.40 | 47.34 | 40.68 | |
| Inventory Turnover, Sector | ||||||
| Transportation | 17.85 | 15.93 | 16.40 | 18.59 | 15.44 | |
| Inventory Turnover, Industry | ||||||
| Industrials | 2.91 | 2.75 | 3.18 | 3.68 | 3.92 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Inventory turnover = Cost of operating revenues ÷ Materials and supplies
= 4,065 ÷ 621 = 6.55
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Union Pacific Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Receivables Turnover
Union Pacific Corp., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 21,804 | 19,533 | 21,708 | 22,832 | 21,240 | |
| Accounts receivable, net | 1,722 | 1,505 | 1,595 | 1,755 | 1,493 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 12.66 | 12.98 | 13.61 | 13.01 | 14.23 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| American Airlines Group Inc. | 19.86 | 12.92 | 26.15 | 26.11 | 24.09 | |
| CSX Corp. | 10.91 | 11.60 | 12.11 | 12.13 | 11.76 | |
| Delta Air Lines Inc. | 12.44 | 12.25 | 16.47 | 19.20 | 17.35 | |
| FedEx Corp. | 6.96 | 6.85 | 7.65 | 7.72 | 7.94 | |
| Norfolk Southern Corp. | 11.42 | 11.54 | 12.28 | 11.36 | 11.05 | |
| United Parcel Service Inc. | 7.76 | 7.87 | 7.76 | 8.02 | 7.51 | |
| Receivables Turnover, Sector | ||||||
| Transportation | 8.85 | 8.50 | 10.51 | 10.81 | 10.57 | |
| Receivables Turnover, Industry | ||||||
| Industrials | 8.14 | 7.74 | 8.41 | 8.44 | 6.76 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Receivables turnover = Operating revenues ÷ Accounts receivable, net
= 21,804 ÷ 1,722 = 12.66
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Union Pacific Corp. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Payables Turnover
Union Pacific Corp., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of operating revenues | 4,065 | 3,276 | 4,361 | 4,974 | 4,254 | |
| Accounts payable | 752 | 612 | 749 | 872 | 1,013 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.41 | 5.35 | 5.82 | 5.70 | 4.20 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| American Airlines Group Inc. | 7.23 | 5.89 | 6.44 | 7.48 | 6.57 | |
| CSX Corp. | 3.17 | 2.79 | 2.69 | 3.30 | 3.54 | |
| Delta Air Lines Inc. | 3.40 | 3.77 | 6.10 | 6.53 | 4.72 | |
| FedEx Corp. | 8.34 | 8.33 | 8.82 | 8.22 | 8.00 | |
| Norfolk Southern Corp. | 1.87 | 2.19 | 1.88 | 1.87 | 1.61 | |
| United Parcel Service Inc. | 3.60 | 3.43 | 3.44 | 3.84 | 4.24 | |
| Payables Turnover, Sector | ||||||
| Transportation | 4.69 | 4.62 | 5.19 | 5.42 | 5.01 | |
| Payables Turnover, Industry | ||||||
| Industrials | 5.43 | 5.34 | 5.55 | 5.91 | 5.95 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Payables turnover = Cost of operating revenues ÷ Accounts payable
= 4,065 ÷ 752 = 5.41
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Union Pacific Corp. payables turnover ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021. |
Working Capital Turnover
Union Pacific Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 3,551 | 4,214 | 3,459 | 4,163 | 4,006 | |
| Less: Current liabilities | 5,744 | 4,173 | 4,351 | 4,626 | 3,939 | |
| Working capital | (2,193) | 41 | (892) | (463) | 67 | |
| Operating revenues | 21,804 | 19,533 | 21,708 | 22,832 | 21,240 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | 476.41 | — | — | 317.01 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| American Airlines Group Inc. | — | — | — | — | — | |
| CSX Corp. | 7.64 | 4.37 | 10.59 | 18.85 | 543.24 | |
| Delta Air Lines Inc. | — | 11.57 | — | — | — | |
| FedEx Corp. | 12.13 | 11.46 | 17.11 | 17.62 | 12.81 | |
| Norfolk Southern Corp. | — | 61.96 | — | — | — | |
| United Parcel Service Inc. | 13.21 | 26.45 | 43.84 | 33.85 | 23.19 | |
| Working Capital Turnover, Sector | ||||||
| Transportation | 42.88 | 29.02 | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 7.78 | 4.99 | 23.68 | 30.79 | 13.95 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Working capital turnover = Operating revenues ÷ Working capital
= 21,804 ÷ -2,193 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Union Pacific Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 6.55 | 5.13 | 5.81 | 6.70 | 5.68 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 56 | 71 | 63 | 54 | 64 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| American Airlines Group Inc. | 51 | 84 | 51 | 42 | 45 | |
| CSX Corp. | 41 | 49 | 34 | 31 | 45 | |
| Delta Air Lines Inc. | 28 | 25 | 23 | 20 | 28 | |
| FedEx Corp. | 7 | 8 | 8 | 8 | 9 | |
| Norfolk Southern Corp. | 32 | 36 | 33 | 27 | 36 | |
| United Parcel Service Inc. | 10 | 10 | 10 | 8 | 9 | |
| Average Inventory Processing Period, Sector | ||||||
| Transportation | 20 | 23 | 22 | 20 | 24 | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 125 | 133 | 115 | 99 | 93 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.55 = 56
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Union Pacific Corp. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Receivable Collection Period
Union Pacific Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 12.66 | 12.98 | 13.61 | 13.01 | 14.23 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 29 | 28 | 27 | 28 | 26 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| American Airlines Group Inc. | 18 | 28 | 14 | 14 | 15 | |
| CSX Corp. | 33 | 31 | 30 | 30 | 31 | |
| Delta Air Lines Inc. | 29 | 30 | 22 | 19 | 21 | |
| FedEx Corp. | 52 | 53 | 48 | 47 | 46 | |
| Norfolk Southern Corp. | 32 | 32 | 30 | 32 | 33 | |
| United Parcel Service Inc. | 47 | 46 | 47 | 45 | 49 | |
| Average Receivable Collection Period, Sector | ||||||
| Transportation | 41 | 43 | 35 | 34 | 35 | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 45 | 47 | 43 | 43 | 54 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 12.66 = 29
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Union Pacific Corp. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Operating Cycle
Union Pacific Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 56 | 71 | 63 | 54 | 64 | |
| Average receivable collection period | 29 | 28 | 27 | 28 | 26 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 85 | 99 | 90 | 82 | 90 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| American Airlines Group Inc. | 69 | 112 | 65 | 56 | 60 | |
| CSX Corp. | 74 | 80 | 64 | 61 | 76 | |
| Delta Air Lines Inc. | 57 | 55 | 45 | 39 | 49 | |
| FedEx Corp. | 59 | 61 | 56 | 55 | 55 | |
| Norfolk Southern Corp. | 64 | 68 | 63 | 59 | 69 | |
| United Parcel Service Inc. | 57 | 56 | 57 | 53 | 58 | |
| Operating Cycle, Sector | ||||||
| Transportation | 61 | 66 | 57 | 54 | 59 | |
| Operating Cycle, Industry | ||||||
| Industrials | 170 | 180 | 158 | 142 | 147 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 56 + 29 = 85
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Union Pacific Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Payables Payment Period
Union Pacific Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.41 | 5.35 | 5.82 | 5.70 | 4.20 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 68 | 68 | 63 | 64 | 87 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| American Airlines Group Inc. | 50 | 62 | 57 | 49 | 56 | |
| CSX Corp. | 115 | 131 | 136 | 111 | 103 | |
| Delta Air Lines Inc. | 108 | 97 | 60 | 56 | 77 | |
| FedEx Corp. | 44 | 44 | 41 | 44 | 46 | |
| Norfolk Southern Corp. | 195 | 167 | 195 | 195 | 227 | |
| United Parcel Service Inc. | 102 | 107 | 106 | 95 | 86 | |
| Average Payables Payment Period, Sector | ||||||
| Transportation | 78 | 79 | 70 | 67 | 73 | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 67 | 68 | 66 | 62 | 61 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.41 = 68
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Union Pacific Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 56 | 71 | 63 | 54 | 64 | |
| Average receivable collection period | 29 | 28 | 27 | 28 | 26 | |
| Average payables payment period | 68 | 68 | 63 | 64 | 87 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 17 | 31 | 27 | 18 | 3 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| American Airlines Group Inc. | 19 | 50 | 8 | 7 | 4 | |
| CSX Corp. | -41 | -51 | -72 | -50 | -27 | |
| Delta Air Lines Inc. | -51 | -42 | -15 | -17 | -28 | |
| FedEx Corp. | 15 | 17 | 15 | 11 | 9 | |
| Norfolk Southern Corp. | -131 | -99 | -132 | -136 | -158 | |
| United Parcel Service Inc. | -45 | -51 | -49 | -42 | -28 | |
| Cash Conversion Cycle, Sector | ||||||
| Transportation | -17 | -13 | -13 | -13 | -14 | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 103 | 112 | 92 | 80 | 86 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 56 + 29 – 68 = 17
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Union Pacific Corp. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |