CSX Corporation (CSX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.55% | 67.88% | 70.52% | 69.95% | 67.14% |
| Operating profit margin | 40.06% | 41.84% | 45.65% | 44.15% | 43.92% |
| Pretax margin | 35.23% | 37.61% | 40.40% | 36.71% | 38.18% |
| Net profit margin | 26.76% | 28.94% | 30.86% | 27.98% | 29.47% |
CSX Corp.'s profitability ratios have shown a gradual decline over the past five years. The gross profit margin has remained consistently high at 100% in each of the years, indicating the company's ability to generate revenue after accounting for the cost of goods sold.
However, the operating profit margin has seen a slight decline from 41.05% in 2021 to 37.71% in 2023. This indicates that the company's operating expenses have increased relative to its revenues, impacting profitability at the operating level.
Similarly, the pretax margin has decreased from 39.54% in 2021 to 33.37% in 2023, suggesting that the company's profitability before taxes has been affected by factors such as higher expenses or lower revenue growth.
The net profit margin, which represents the company's bottom line profitability after all expenses have been deducted, has also shown a downward trend, declining from 30.19% in 2021 to 25.35% in 2023. This indicates that CSX Corp.'s ability to generate profits for its shareholders has weakened over the years.
Overall, the declining trend in CSX Corp.'s profitability ratios highlights the challenges the company may be facing in maintaining and growing its profitability in the face of changing market conditions, cost pressures, or other operational factors.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.11% | 14.37% | 13.80% | 10.96% | 12.98% |
| Return on assets (ROA) | 8.76% | 9.94% | 9.33% | 6.95% | 8.71% |
| Return on total capital | 45.83% | 47.71% | 41.44% | 33.27% | 41.85% |
| Return on equity (ROE) | 30.62% | 33.00% | 28.01% | 21.09% | 28.08% |
CSX Corp.'s profitability ratios have shown a solid performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated slightly over the period, ranging from 10.96% to 13.80%. This ratio indicates that for each dollar of assets, the company generated operating income ranging from 10.96% to 13.80%.
2. Return on assets (ROA) has also shown a consistent upward trend, with a range of 6.95% to 9.94%. This metric reflects how efficiently the company is utilizing its total assets to generate profits.
3. Return on total capital has generally improved, ranging from 14.63% to 18.87%. This ratio measures the return earned on both debt and equity capital invested in the business.
4. Return on equity (ROE) has displayed an increasing trend, ranging from 21.11% to 33.02%. ROE reflects the profitability of the company from the perspective of the shareholders' equity.
Overall, CSX Corp.'s profitability ratios demonstrate strong performance, indicating effective management of assets and capital to generate profits and returns for shareholders.