The business behind the dividend
| Measure | UNP | Median | Formula |
|---|---|---|---|
| Return on equity | 38.7% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 19.6% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $5.81bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $5.50bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 40.2% | 15.0% | Operating income ÷ revenue |
| Net margin | 29.1% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.72x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 7.52x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.91x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.30x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 38.7% | 39.9% | 43.1% | 57.5% | 46.1% | 31.5% | 32.7% | 29.2% | 43.1% | 21.2% | 38.7% |
| Return on capital employed | 19.6% | 20.2% | 19.2% | 21.8% | 21.3% | 17.9% | 19.7% | 19.9% | 19.4% | 20.7% | 19.7% |
| Operating margin | 40.2% | 40.1% | 37.7% | 39.9% | 42.8% | 40.1% | 39.4% | 37.3% | 38.2% | 36.3% | 39.4% |
| Net margin | 29.1% | 27.8% | 26.4% | 28.1% | 29.9% | 27.4% | 27.3% | 26.1% | 50.4% | 21.2% | 27.4% |
| Debt to equity | 1.72x | 1.85x | 2.20x | 2.74x | 2.10x | 1.58x | 1.39x | 1.10x | 0.68x | 0.75x | 1.58x |
| Current ratio | 0.91x | 0.77x | 0.81x | 0.72x | 0.62x | 1.01x | 0.79x | 0.90x | 1.02x | 0.99x | 0.81x |
| Cash conversion | 1.30x | 1.39x | 1.31x | 1.34x | 1.38x | 1.60x | 1.45x | 1.46x | 0.67x | 1.78x | 1.38x |
How it compares in industrials
Among the 74 industrials companies here measured on free cash flow, Union Pacific pays out less than 7 of them. The median for that group is 28.1%, against this company’s 58.8%.
Closest on free cash flow
- Honeywell International (HON) 54.9%
- Norfolk Southern (NSC) 56.3%
- CSX (CSX) 56.8%
- Paccar (PCAR) 61.7%
Same sector and same denominator, so the figures are comparable. All 81 in industrials →