What Does Union Pacific's Debt Look Like?
Portfolio Pulse from Benzinga Insights
Union Pacific Inc.'s shares have risen by 7.15% in the past three months. The company's financial statement as of April 20, 2023, shows a long-term debt of $31.19 billion and a current debt of $2.59 billion, amounting to $33.78 billion in total debt. Adjusted for $1.08 billion in cash-equivalents, the net debt is at $32.70 billion. The debt-ratio, considering Union Pacific's $65.97 billion in total assets, is at 0.51.
July 19, 2023 | 5:45 pm
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Union Pacific's total debt is $33.78 billion, with a debt-ratio of 0.51. This indicates a moderate level of financial leverage, which could impact the company's ability to raise capital and its risk for default.
Union Pacific's debt level and debt-ratio indicate a moderate level of financial leverage. While this can be beneficial for raising capital at a lower cost than equity, it also increases the risk of default, particularly if interest rates rise. The impact on the stock price in the short term is uncertain, as it will depend on investor sentiment and broader market conditions.
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