CSX Corporation (CSX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 22.22 | 20.47 | 26.59 | 21.78 | 20.60 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | 91.61 | 10.78 | 7.64 | 4.37 |
The analysis of CSX Corporation's activity ratios reveals interesting trends.
1. Inventory turnover: Over the years, CSX Corporation has shown a consistent improvement in its inventory turnover ratio, indicating the company is efficiently managing its inventory levels. The ratio has increased from 20.60 in 2020 to 22.22 in 2024, suggesting that CSX is selling its inventory more frequently.
2. Receivables turnover: The data provided does not include information on receivables turnover, which makes it challenging to assess CSX Corporation's efficiency in collecting receivables from its customers.
3. Payables turnover: Similar to receivables turnover, information on payables turnover is not available in the data. Payables turnover measures how quickly a company pays its suppliers, so it's an essential indicator of cash management.
4. Working capital turnover: CSX Corporation's working capital turnover has shown a significant increase over the years, with a particularly sharp rise from 2022 to 2023. A high working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate revenue.
In conclusion, CSX Corporation has demonstrated efficiency in managing its inventory levels and working capital. However, the lack of information on receivables and payables turnover limits a comprehensive analysis of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 16.43 | 17.83 | 13.73 | 16.76 | 17.72 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
CSX Corporation's Days of Inventory on Hand (DOH) decreased from 17.72 days on December 31, 2020, to 16.43 days on December 31, 2024. This indicates that the company is managing its inventory more efficiently and turning it over at a faster rate over the period.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available, which limits the analysis of CSX Corporation's activity ratios related to accounts receivable and accounts payable.
Overall, based on the available information on Days of Inventory on Hand, it seems that CSX Corporation has been improving its inventory management efficiency, which can positively impact its working capital and overall financial performance. However, a more comprehensive assessment would require additional data on DSO and payables turnover to provide a holistic view of the company's activity ratios.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.43 | 0.38 | 0.33 |
| Total asset turnover | 0.34 | 0.35 | 0.35 | 0.31 | 0.27 |
CSX Corporation's fixed asset turnover ratio shows an improvement over the years, increasing from 0.33 in December 2020 to 0.43 in December 2022. This indicates that the company is generating more revenue per dollar invested in its fixed assets. However, the ratio data for December 2023 and December 2024 is missing, making it difficult to assess the trend for those years.
In terms of total asset turnover, CSX Corporation's ratio increased steadily from 0.27 in December 2020 to 0.35 in December 2023, before slightly decreasing to 0.34 in December 2024. This suggests that the company is efficiently utilizing its total assets to generate sales. Overall, the company's long-term activity ratios reflect positive trends in asset utilization efficiency, indicating effective management of assets to generate revenue.