2022 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. Headquartered in Omaha, Nebraska, Union Pacific was founded in 1862 and has a long history of providing freight transportation services across the western two-thirds of the country. The company is known for its extensive rail infrastructure and its role in facilitating the movement of goods across the nation.

The cash flow statement provides insights into how much cash or cash equivalents Union Pacific Corporation has generated and used during the fiscal year 2022. This statement is divided into three sections: operating activities, investing activities, and financing activities, which collectively help investors and analysts assess the company's cash management strategies.

How to read the chart

The chart above illustrates Union Pacific Corporation's cash flow for the year 2022. The width of the bars represents the magnitude of cash flow, with wider bars indicating larger amounts.

Starting on the left, we see the company's cash position at the beginning of the year. The cash position increased slightly over the year, indicating that the company effectively managed its cash resources despite engaging in significant financing and investing activities. The cash flow from operating activities was the largest source of cash, while investing activities resulted in a cash outflow.

The cash flow from investing activities was negative, indicating that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities was also negative, reflecting cash outflows for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the changes in cash, we end 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 2022. 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 happen, but a simulation based on the company's reported cash flow for 2022. The counter is intended to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, Union Pacific Corporation generated $9,362 million in cash from operating activities, spent $3,471 million on investing activities, and used $5,887 million for financing activities. Consequently, the company's cash balance increased by $4 million during the year.

The company's beginning cash balance was $983 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 $987 million.

Union Pacific's capital expenditures for the year were $3,620 million. This amount represents the cash the company invested in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $5,742 million in 2022. This amount represents the cash available for dividends, stock repurchases, or other investments.

Summary

Union Pacific Corporation's cash flow in 2022 highlights its strong operational cash generation, which significantly contributed to its ability to fund capital expenditures and manage financing activities. Despite substantial investments in infrastructure and equipment, the company maintained a stable cash position, demonstrating effective cash management strategies. The increase in free cash flow underscores Union Pacific's capacity to support shareholder returns and future growth initiatives.