Stock Analysis on Net

Union Pacific Corp. (NYSE:UNP)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

Union Pacific Corp., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 6.55 5.13 5.81 6.70 5.68
Receivables turnover 12.66 12.98 13.61 13.01 14.23
Payables turnover 5.41 5.35 5.82 5.70 4.20
Working capital turnover 476.41 317.01
Average No. Days
Average inventory processing period 56 71 63 54 64
Add: Average receivable collection period 29 28 27 28 26
Operating cycle 85 99 90 82 90
Less: Average payables payment period 68 68 63 64 87
Cash conversion cycle 17 31 27 18 3

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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 + 2968 = 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.