2021 Cash Flow Analysis for Union Pacific Corporation UNP

Union Pacific Corporation is a leading transportation company that operates one of the largest railroad networks in the United States. The company is headquartered in Omaha, Nebraska, and has a rich history dating back to its founding in 1862. Union Pacific is known for its extensive rail network, which plays a crucial role in the transportation of goods across North America.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is essential for investors and analysts to understand how a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Union Pacific Corporation in 2021. The width of the bars indicates the amount of cash flow, with wider bars representing larger amounts.

We begin on the left with the company's cash position at the start of the year. During the year, the cash decreased, indicating that a portion of it was utilized for financing and investing activities. The cash flow from operating activities is the largest source of cash, while the cash flow from investing activities is negative, suggesting that the company spent more on new investments than it received from selling assets or investments.

The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Union Pacific Corporation's cash flow, we have created a real-time counter that simulates the company's cash flow for 2021. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they occur, but a simulation based on the company's reported cash flow for 2021. The counter is designed to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2021, Union Pacific Corporation generated $9,032 million in cash from operating activities, spent $2,709 million on investing activities, and used $7,158 million on financing activities. Consequently, the company's cash balance decreased by $835 million during the year.

The company's beginning cash balance was $1,818 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $983 million.

The company's capital expenditures for the year were $2,936 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $6,096 million in 2021. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Union Pacific Corporation's cash flow in 2021 highlights its strong cash generation from operating activities, which significantly contributed to its ability to fund capital expenditures and manage financing activities. Despite the decrease in cash balance over the year, the company maintained a robust free cash flow, indicating its capacity to support shareholder returns and future investments. The negative cash flow from investing activities suggests a focus on long-term asset investments, while the negative financing cash flow reflects substantial cash outflows for debt servicing and shareholder distributions.