Union Pacific Executive Summary

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Business Overview: Business Summary: Union Pacific is in the train transportation business that works primarily with freight transportation across the nation. Union Pacific offers its service for long distance freight transportation in the United States. They no longer offer passenger transportation but at one time they were one of the largest passenger train company in the nation, that serviced a route from Omaha all the way to San Francisco in only seventy-one hours. That seems very slow now but in 1866 when that route was created it had very high demand. The Union Pacific passenger railroad line slowly went down after the car became a necessity and no longer a luxury. The passenger line was discontinued in 1971 after the demand for long…show more content…
It is owned by Warren Buffet’s Berkshire Hathaway. Another competitor is CSX Corporation Company that covers twenty three states across the eastern United States including DC and two Canadian provinces. They transport the same goods as both BNSF and Union Pacific. The final large competitor of Union Pacific is the Canadian National Railway which has twenty thousand route-miles. It covers Canada from the Pacific to to the Atlantic coast and dips into the western part of US covering Michigan down to…show more content…
The company’s operating income shifted from year to year, ranging between four and five billion, the operating ratio stayed above 70%, the return on invested capital rounded to about 10%, and the returned dividends per share did not break $2.00. In 2012, the operating income jumped to $6.75 billion, almost a full billion from the year before. The operating ratio dipped to 67.8%, an all-time low for the company. The return invested on capital was 14% and the declared dividends per share was $2.49. The company’s total operating revenue at the end of the year was $20.926 billion. The total assets came out to $47.153 billion, mostly deriving from long-term obligations in the company. Freight revenues came out to $19.868 billion. 2012 was an amazing year for Union

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