If the income is $5b a quarter an OR is 63%, then it cost $3.15b to operate that quarter. Leaving 1.85b profit. Keep 500m and distribute 1.35b to shareholders. It would take 50m to lower it one percent. Correct?
3 replies (most recent on top)
The problem with these guys is that they can’t turn off their egos and go enjoy that private island. They have the money to be surrounded by paradise with a trophy wife for the rest of their lives, but can’t put the cards down and leave the game.....
What he said below. If you really want to learn more there are plenty of finance articles about it and how it isn’t necessarily the best way to measure performance, but UP really has a big infatuation with getting it down to 55. It’s just a number. I think it’s some sort of alpha male thing where they want to do it just to do it. Same reason Hunter came out of retirement to spend his last days at CSX. What a way to go out. Didn’t even get to spend the money. I would have bought a private island never to be heard from again.
OR = operating cost / operating revenue
Not all income is operating income.
Not all costs are operating costs.