CSX Corporation (CSX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 10.41 | 13.56 | 10.65 | 9.83 | 14.23 |
| Receivables turnover | 9.97 | 10.96 | 10.67 | 10.83 | 11.46 |
| Payables turnover | 3.75 | 4.09 | 3.75 | 3.67 | 3.56 |
| Working capital turnover | 86.76 | 10.45 | 7.47 | 4.08 | 10.03 |
Over the past five years, CSX Corp. has displayed inconsistent performance in managing its inventory, as indicated by consistently low or zero inventory turnover ratios. This may suggest inefficiencies in inventory management or potentially changing business models that impact the need for inventory holdings.
In terms of managing receivables, CSX Corp. has maintained relatively stable and healthy performance, with receivables turnover ratios ranging between 10.52 and 12.11. This indicates that the company effectively collects payments from its customers, with a faster turnover contributing to improved cash flow and liquidity.
The consistently low or zero payables turnover ratios suggest that CSX Corp. may not be effectively managing its accounts payable, potentially missing out on opportunities to optimize its working capital and payment terms with suppliers.
The working capital turnover ratios show significant fluctuations over the five-year period, indicating changes in how efficiently CSX Corp. is utilizing its working capital to generate revenue. The ratio has shown a notable improvement from 4.37 in 2020 to 91.61 in 2023, indicating that the company has become more efficient in utilizing its working capital to generate revenue.
Overall, while CSX Corp. demonstrates strengths in managing receivables and working capital efficiency, there are opportunities for improvement in inventory management and accounts payable turnover to enhance overall liquidity and operational efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.05 | 26.92 | 34.26 | 37.13 | 25.65 |
| Days of sales outstanding (DSO) | days | 36.63 | 33.29 | 34.19 | 33.69 | 31.84 |
| Number of days of payables | days | 97.22 | 89.20 | 97.31 | 99.46 | 102.50 |
Based on the provided data for CSX Corp.'s activity ratios over the past five years:
1. Days of Inventory on Hand (DOH): Unfortunately, specific data regarding the days of inventory on hand are not available for any of the given years. This ratio could provide insights into how efficient CSX Corp. is in managing its inventory levels.
2. Days of Sales Outstanding (DSO): The days of sales outstanding have shown a fluctuating trend over the past five years. In 2023, the DSO increased to 34.69 days from 32.27 days in 2022. This indicates that CSX Corp. took slightly longer to collect its accounts receivable in 2023 compared to the previous year. It's worth noting that this ratio has generally been within a narrow range between 30.15 to 34.69 days, signaling consistent collection practices.
3. Number of Days of Payables: Similar to the days of inventory on hand, there is no available data for the number of days of payables for any of the years. This ratio would have provided insights into how long CSX Corp. takes to pay its suppliers, which is crucial for understanding its working capital management.
Overall, without information on inventory and payable days, a comprehensive analysis of CSX Corp.'s working capital efficiency and operational performance is limited. For a more in-depth assessment of the company's activity ratios, additional data on inventory management and payables turnover would be necessary.
See also:
CSX Corporation Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.40 | 0.42 | 0.37 | 0.30 | 0.35 |
| Total asset turnover | 0.33 | 0.34 | 0.30 | 0.25 | 0.30 |
The fixed asset turnover ratio measures how effectively a company generates revenue from its investment in fixed assets. CSX Corp.'s fixed asset turnover has fluctuated over the past five years, ranging from 0.33 in 2020 to 0.43 in 2022. In 2023, the ratio decreased slightly to 0.42, indicating that the company generated $0.42 in revenue for every dollar invested in fixed assets.
On the other hand, the total asset turnover ratio assesses the efficiency with which a company generates sales from all its assets. CSX Corp.'s total asset turnover has also varied in the last five years, with a low of 0.27 in 2020 and a high of 0.35 in 2023 and 2022. The ratio remained stable at 0.35 in 2023 and 2022, suggesting that the company generated $0.35 in revenue for every dollar of assets held.
Overall, the trend in both the fixed asset turnover and total asset turnover ratios for CSX Corp. generally demonstrates some level of consistency and effectiveness in utilizing its fixed and total assets to generate revenue over the years analyzed. Further analysis in conjunction with other financial metrics would provide a more comprehensive assessment of the company's long-term activity performance.