Union Pacific Corporation
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Union Pacific Corporation Financial Snapshot
Operating Performance
Fast Facts
1400 Douglas Street, Omaha, 68179,United The company reported revenues of US$16,965.00
Headquarters Address
States of America million during 2010, with a CAGR of 2.16% during
2006–2010. Its revenue grew at an annual rate of
Telephone + 1 402 5445000
19.95% over the previous fiscal year. In 2010, the
company recorded an operating margin of 29.24%, as
Fax + 1 402 2716408 against 23.89% in 2009.
Website www.up.com
Revenue and Margins
Ticker Symbol, Stock Exchange UNP, New York Stock Exchange
Number of Employees 42,884
Fiscal Year End December
Revenue (in US$ million) 16,965.00
SWOT Analysis
Strengths Weaknesses Return on Equity
Diversified customer base Highly unionized workforce The company recorded a return on equity (ROE) of
15.65% for 2010, as compared to its peers, CSX
Corporation (Ticker: CSX), Norfolk Southern
Strong growth of freight revenues Weak cash position Corporation (Ticker: NSC) and Canadian Pacific
Railway Limited (Ticker: CP), which recorded ROEs
Wide logistics network of 17.99%, 14.02% and 13.49% respectively. The
company reported an operating margin of 29.24% in
2010.
Opportunities Threats
Declining demand in the US coal Return on Equity
Growing US agriculture industry
market
Improvement of infrastructure Dependence on key suppliers
Launch of new design railcar Stringent regulations
Relocation of ShipCarsNow
Liquidity Position
The company reported a current ratio of 1.16 in 2010,
as compared to its peers, CSX Corporation, Norfolk
Southern Corporation and Canadian Pacific Railway
Limited, which recorded current ratios of 1.13, 1.19
and 0.93 respectively. As of December 2010, the
company recorded cash and short-term investments
of worth US$1,086.00 million, against US$239.00
million current debt. The company reported a debt to
equity ratio of 0.52 in 2010 as compared to its peers,
CSX Corporation, Norfolk Southern Corporation and
Canadian Pacific Railway Limited, which recorded
debt to equity ratios of 1.00, 0.66 and 0.89
respectively.
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Union Pacific Corporation - SWOT Profile Page 1
Union Pacific Corporation
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
2.2 Key Financial Performance Indicators .................................................................................................................11
2.2.1 Revenue and Operating Profit .........................................................................................................................11
2.2.2 Asset, Liabilities and Capex .............................................................................................................................12
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................13
2.2.4 Operational Efficiency ......................................................................................................................................14
2.2.5 Solvency ..........................................................................................................................................................15
2.2.6 Valuation ..........................................................................................................................................................16
2.3 Competitive Benchmarking ..................................................................................................................................17
2.3.1 Efficiency ..........................................................................................................................................................17
2.3.2 Capital Expenditure ..........................................................................................................................................18
2.3.3 Valuation ..........................................................................................................................................................19
2.3.4 Turnover – Inventory and Asset .......................................................................................................................20
2.3.5 Liquidity .....................................................................................................