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Union Pacific Financial Strength

: 4 (As of Jun. 2022)
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Union Pacific has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Union Pacific's Interest Coverage for the quarter that ended in Jun. 2022 was 7.90. Union Pacific's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.34. As of today, Union Pacific's Altman Z-Score is 3.83.


Competitive Comparison

For the Railroads subindustry, Union Pacific's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Union Pacific Financial Strength Distribution

For the Transportation industry and Industrials sector, Union Pacific's Financial Strength distribution charts can be found below:

* The bar in red indicates where Union Pacific's Financial Strength falls into.



Union Pacific Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Union Pacific's Interest Expense for the months ended in Jun. 2022 was $-316 Mil. Its Operating Income for the months ended in Jun. 2022 was $2,495 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $30,968 Mil.

Union Pacific's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*2495/-316
=7.90

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Union Pacific's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2648 + 30968) / 25076
=1.34

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Union Pacific has a Z-score of 3.83, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.83 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Union Pacific  (NYSE:UNP) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Union Pacific has the Financial Strength Rank of 4.


Union Pacific Financial Strength Related Terms

Thank you for viewing the detailed overview of Union Pacific's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Union Pacific Business Description

Union Pacific logo
Address
1400 Douglas Street, Omaha, NE, USA, 68179
Omaha, Nebraska-based Union Pacific is the largest public railroad in North America. Operating on more than 30,000 miles of track in the western two thirds of the U.S., UP generated roughly $22 billion of revenue in 2021 by hauling coal, industrial products, intermodal containers, agriculture goods, chemicals, and automotive goods. UP owns about one fourth of Mexican railroad Ferromex and derives about 10% of its revenue hauling freight to and from Mexico.
Executives
Finley Teresa M. director 927 STOVALL BOULEVARD NE ATLANTA GA 30319
Edison Sheri H. director 1069 STATE ROUTE 46 EAST BATESVILLE IN 47006
Gehringer Eric J officer: EVP Operations 1400 DOUGLAS STREET OMAHA NE 68179
Richardson Craig V officer: EVP CLO & Corp Sec 1400 DOUGLAS STREET OMAHA NE 68179
Hamann Jennifer L officer: EVP & CHIEF FINANCIAL OFFICER 1400 DOUGLAS STREET OMAHA NE 68130
Williams Christopher J director 650 FIFTH AVE 10TH FL NEW YORK NY 10019
Vena Vincenzo J officer: CHIEF OPERATING OFFICER 1400 DOUGLAS STREET OMAHA NE 68179
Delaney William J Iii director 1390 ENCLAVE PARKWAY HOUSTON TX 77077
Rocker Kenyatta G officer: EVP Marketing & Sales 1400 DOUGLAS STREET OMAHA NE 68179
Lischer Thomas A officer: EVP Operations 1400 DOUGLAS STREET OMAHA NE 68179
Patel Bhavesh V. director C/O LYONDELLBASELL INDUSTRIES N.V. DELFTSEPLEIN 27E ROTTERDAM P7 3013AA
Hopkins Deborah C director 1007 MARKET ST WILMINGTON DE 19898
Whited Elizabeth F officer: EVP & CHIEF MARKETING OFFICER 1400 DOUGLAS ST OMAHA NE 68179
Ferguson Rhonda S officer: EVP & CHIEF LEGAL OFFICER 1400 DOUGLAS ST OMAHA NE 68179
Lute Jane H director 4404 33RD ROAD NORTH ARLINGTON VA 22207

Union Pacific Headlines

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