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Railroad Economics
Reading Union Pacific’s Operating Ratio
Learn how freight mix, price, network productivity and capital intensity connect in a railroad income statement using Union Pacific’s FY2024 disclosures. Fiscal years ended December 31, 2024 and 2023; USD millions unless stated; carloads in thousands. The company release was cross-checked to its Form 10-K. Rounded ratios can differ from division of displayed millions. Management explanations are attributed; classroom sensitivities are not forecasts.
What you will learn
- Define freight revenue, carloads, average revenue per car and operating ratio.
- Reproduce an operating-ratio calculation and distinguish points from percent change.
- Separate volume, price and mix explanations.
- Connect service and workforce metrics to financial outcomes without claiming causation.
- Frame a bounded operating decision with missing-data checks.