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Union Pacific earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score72 / 100 · grade B · rank 244 of 1027

Union Pacific (UNP) scores 72 of 100 for earnings quality, grade B: rank 244 of 1027 companies and 44 of 287 in industrials. It loses the most points on accruals of -3.1% of assets, higher than 61% of companies (profit backed by cash), Montier C-score 2 of 4 checks failed. It earns full or near-full marks for discretionary accruals of +0.3% of assets (modified Jones), smaller than most, profit steadier than cash flow (smoothness 0.66), adjusted and GAAP earnings agree.

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -3.1% of assets, higher than 61% of companies (profit backed by cash)1027
Dechow F-scoreDechow F-score 0.37 (normal)2020
Montier C-scoreMontier C-score 2 of 4 checks failed1020
Discretionary accrualsdiscretionary accruals of +0.3% of assets (modified Jones), smaller than most1313
Non-GAAP gapadjusted and GAAP earnings agree1313
Earnings smoothnessprofit steadier than cash flow (smoothness 0.66)67
UNP: share of the available points, by componentUNP: share of the available points, by componentAccruals39%Discretionary accruals95%Dechow F-score100%Montier C-score50%Non-GAAP gap98%Earnings smoothness91%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

Every company ranked → The full quality workbench, live → Union Pacific: cash flow →

Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.