UNP

Union Pacific Corporation

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Is UNP Halal?

Permissible freight transportation activity, but the current filing-based debt/assets ratio fails the examined asset-based limits.

What You Should Know

Union Pacific is the largest U.S. Class I freight railroad, moving bulk, industrial and premium commodities across a 32,000-route-mile network. General-purpose transportation is generally permissible, while coal, energy, chemical and customer end-use mix require qualitative review. The March 31, 2026 Form 10-Q gives total assets of $69,644 million, conservative debt and leases of $30,638 million, cash of $735 million, receivables of $1,986 million and quarterly revenue of $6,217 million. Debt/assets is 43.99%, liquidity/assets is 1.06%, receivables plus cash/assets is 3.91% and disclosed other interest/revenue is 0.24%; the examined FTSE, MSCI and Malaysia asset-based financial screens fail.

⚠️ Concerns

  • The current filing-based debt/assets screen is 43.99%, above the examined 33.33% limit
  • Coal-haulage revenue is a declining but meaningful component of the bulk-commodities mix; some scholars apply additional environmental-stewardship scrutiny
  • Crude-oil and petrochemical haulage is part of the energy-and-specialized industrial mix
  • Disclosed other interest income is $15 million for the quarter; consult a qualified scholar on purification
  • The filing does not provide a universal prohibited-revenue numerator across all commodities and customers

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
43.99%Above limit
Below 33.333% under FTSE Yasaar

30,638 / 69,644

Cash + interest-bearing securities / assets
1.06%Within limit
Below 33.333% under FTSE Yasaar

735 / 69,644

Receivables + cash / assets
3.91%Within limit
Below 50% under FTSE Yasaar

2,721 / 69,644

Non-compliant income / revenue
0.24%Within limit
No more than 5% under FTSE Yasaar

15 / 6,217

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 43.99%, above the examined 33.333% limit; liquidity/assets is 1.06% and receivables-plus-cash/assets is 3.91%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 43.99%, above the examined MSCI 33.33% limit; liquidity/assets is 1.06% and receivables-plus-cash/assets is 3.91%.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 43.99%, above the examined Malaysia debt limit; transportation activity and prohibited-revenue allocation remain qualitative.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A properly licensed and reproducible historical market-cap series is not stored; filing-based asset ratios remain documented.

Business-activity disclosure

Union Pacific transports freight by rail. General-purpose transportation is generally permissible, while commodity, coal and customer end-use allocation requires qualitative review.

Limitation: The filing does not provide a universal prohibited-revenue numerator across all commodities and customers.

Purification

Union Pacific discloses $15 million of other interest income, but no scholar-approved purification percentage is asserted for the operating business.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Union Pacific's March 31, 2026 Form 10-Q.
  • Conservative debt includes $29,784 million of long-term debt and capital lease obligations plus $235 million current and $619 million noncurrent operating-lease liabilities.
  • Receivables use the reported $1,986 million balance; no unsupported prohibited-revenue numerator is assumed.
  • Quarterly revenue is $6,217 million and disclosed other interest income is $15 million, or 0.24% of revenue.
  • Freight rail is generally permissible, while commodity, coal, defense and customer end-use mix require qualitative review.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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