CSX Corporation (CSX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.74% | 37.71% | 38.95% | 41.05% | 41.22% |
| Operating profit margin | 36.07% | 37.94% | 40.55% | 44.67% | 41.22% |
| Pretax margin | 33.64% | 33.37% | 36.45% | 39.54% | 34.27% |
| Net profit margin | 23.87% | 25.35% | 28.05% | 30.19% | 26.13% |
CSX Corporation's profitability ratios have shown a slight decline over the years based on the provided data. The Gross Profit Margin, which measures the percentage of revenue remaining after deducting the cost of goods sold, decreased from 41.22% in 2020 to 36.74% in 2024. This indicates a reduction in the company's ability to generate a profit on its goods.
Similarly, the Operating Profit Margin, which reflects the percentage of revenue left after deducting operating expenses, decreased from 41.22% in 2020 to 36.07% in 2024. This suggests a decrease in the company's operational efficiency over the years.
The Pretax Margin, representing the percentage of revenue that converts to pre-tax income, declined from 34.27% in 2020 to 33.64% in 2024. This indicates a decrease in the company's ability to generate profit before taxes.
Lastly, the Net Profit Margin, which shows the percentage of revenue that converts to net income, decreased from 26.13% in 2020 to 23.87% in 2024. This indicates a reduction in the company's bottom-line profitability.
Overall, CSX Corporation's profitability ratios have experienced a decline over the years, suggesting potential challenges in maintaining and growing its profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.26% | 13.11% | 14.37% | 13.80% | 10.96% |
| Return on assets (ROA) | 8.11% | 8.76% | 9.94% | 9.33% | 6.95% |
| Return on total capital | 43.07% | 47.24% | 46.65% | 38.76% | 33.42% |
| Return on equity (ROE) | 27.74% | 30.63% | 33.00% | 28.01% | 21.09% |
Based on the provided data, we can analyze the profitability ratios of CSX Corporation as follows:
1. Operating Return on Assets (Operating ROA):
- CSX Corporation's Operating ROA has shown a consistent improvement over the years, increasing from 10.96% in 2020 to 13.80% in 2021, reaching its peak at 14.37% in 2022, and then slightly declining to 13.11% by 2023 and 12.26% in 2024. This indicates that the company has been effectively generating operating profits relative to its assets during this period.
2. Return on Assets (ROA):
- The ROA of CSX Corporation has also been on an upward trend, rising from 6.95% in 2020 to 9.33% in 2021, further increasing to 9.94% in 2022, and then decreasing to 8.76% in 2023 and 8.11% in 2024. This ratio indicates how efficiently the company is utilizing its assets to generate profits.
3. Return on Total Capital:
- CSX Corporation's Return on Total Capital has shown significant growth over the years, starting at 33.42% in 2020 and steadily increasing to 38.76% in 2021, further rising to 46.65% in 2022, and peaking at 47.24% in 2023 before declining slightly to 43.07% in 2024. This ratio reflects the company's ability to generate returns from both equity and debt capital employed in its operations.
4. Return on Equity (ROE):
- The Return on Equity for CSX Corporation has demonstrated a similar positive trend, moving from 21.09% in 2020 to 28.01% in 2021, climbing to 33.00% in 2022, and then decreasing to 30.63% in 2023 and 27.74% in 2024. ROE measures the profitability of the company from the perspective of its shareholders' equity.
Overall, based on the profitability ratios analyzed, CSX Corporation has exhibited strong performance in terms of generating profits relative to its assets, total capital, and equity over the period covered in the data.