Union Pacific sets all-time quarterly record for operating ratio

A photograph of a Union Pacific train traveling through a grassy field.

Union Pacific (NYSE: UNP) eked out an all-time quarterly record operating ratio (OR) in the third quarter despite a 11% drop in operating revenue.

Union Pacific’s (UP) OR was 58.7% for the quarter, compared with 59.5% in the third quarter of 2019, amid lower fuel prices. 

Investors sometimes use OR, which is operating expenses as a percentage of revenue, to gauge the financial health of a company. A lower OR implies improved financial health.

Meanwhile, net income was $1.4 billion, or $2.01 per...

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