Are there any concerns about UNP's debt levels or financial health?

Yes, there are concerns about Union Pacific's (UNP) debt levels and financial health, which are important factors to consider for investors:

1. **High Debt-to-Equity Ratio**: Union Pacific's debt-to-equity ratio is high, standing at 204% as of March 2025. This indicates that the company's liabilities significantly exceed its equity, which can be a red flag for financial health and the potential for default.
2. **Total Liabilities and Net Debt**: The company has total liabilities of $52.45 billion, with a net debt of $31.3 billion. This substantial net debt can indicate that Union Pacific is heavily reliant on debt financing, which can lead to higher interest expenses and financial flexibility concerns.
3. **Interest Coverage Ratio**: With an interest coverage ratio of 7.61, Union Pacific's ability to pay interest expenses is relatively comfortable, but it's important to note that this ratio is below some industry averages, which could be a concern.

|code|Ticker|Name|market_code|
|---|---|---|---|
|UNP|UNP.N|Union Pacific|169|

|code|Ticker|Name|Date|Debt-to-Equity Ratio|Current Ratio|Quick Ratio|market_code|
|---|---|---|---|---|---|---|---|
|UNP|UNP.N|Union Pacific|2024 Q3|1.8941751085383502|0.7732|0.6288|169|
|UNP|UNP.N|Union Pacific|2024 Q4|1.8467732386027236|0.7653|0.619|169|
|UNP|UNP.N|Union Pacific|2025 Q1|2.047633892387306|0.7295|0.6095|169|
|UNP|UNP.N|Union Pacific|2025 Q2|2.0182679296346415|0.6483|0.5284|169|

4. **Free Cash Flow and Financing Cash Flow**: The company's free cash flow is positive at $1.3 billion, but financing cash flow is negative at -$878 million. This could suggest that Union Pacific is generating sufficient cash to support its operations but may be actively using cash to pay down debt or invest in growth opportunities.

|code|Ticker|Name|Date|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|
|FCF|FCF.N|First Commonwealth Financial|2024 Q2|-3.4617E7|2.2693E7|-1.1015E8|169|
|UNP|UNP.N|Union Pacific|2024 Q2|-7.9E8|1.911E9|-9.17E8|169|
|FCF|FCF.N|First Commonwealth Financial|2024 Q3|1.8686E7|5.3608E7|3.21722E8|169|
|UNP|UNP.N|Union Pacific|2024 Q3|-8.34E8|2.651E9|-2.007E9|169|
|FCF|FCF.N|First Commonwealth Financial|2024 Q4|-4.1549E7|1.3517E7|-4.20868E8|169|
|UNP|UNP.N|Union Pacific|2024 Q4|-8.99E8|2.662E9|-1.692E9|169|
|FCF|FCF.N|First Commonwealth Financial|2025 Q1|-2.13561E8|5.5886E7|1.65624E8|169|
|UNP|UNP.N|Union Pacific|2025 Q1|-9.38E8|2.21E9|-8.78E8|169|

5. **Analyst Perspectives**: Analysts have expressed concerns about Union Pacific's high debt levels and the potential risks associated with them. For instance, a report highlights that the company's liabilities exceed its equity, which can be a risky financial structure. Additionally, the use of debt to fund growth can be a double-edged sword, as it may lead to financial distress if not managed properly.

In summary, while Union Pacific's financial health appears stable with positive free cash flow and a manageable interest coverage ratio, the high debt-to-equity ratio and substantial net debt position the company in a vulnerable financial position. It is crucial for the company to maintain a prudent financial strategy to manage its debt levels and ensure the sustainability of its dividend payments and capital investments.