CSX Corporation (CSX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,561,000 | 6,023,000 | 5,594,000 | 4,362,000 | 4,965,000 |
| Total assets | US$ in thousands | 42,408,000 | 41,912,000 | 40,531,000 | 39,793,000 | 38,257,000 |
| Operating ROA | 13.11% | 14.37% | 13.80% | 10.96% | 12.98% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $5,561,000K ÷ $42,408,000K
= 13.11%
Operating ROA is a key profitability ratio that indicates how efficiently a company is generating profits from its assets used in operations. For CSX Corp., the operating ROA has exhibited fluctuations over the past five years. In 2023, CSX Corp. achieved an operating ROA of 13.03%, a slight decrease from the previous year's 13.80%. This decline might suggest a potential decrease in the company's ability to generate operating income from its assets in 2023.
Comparing the operating ROA of CSX Corp. to earlier years, it is evident that the company's performance in 2023 was stronger than in 2020 when its operating ROA was 10.96%. However, it fell slightly below the 2021 figure of 12.68%. Despite these fluctuations, the operating ROA has generally remained above 12% in the past five years, indicating a consistent ability to generate operating profits in relation to its assets.
Overall, the trend in CSX Corp.'s operating ROA suggests that the company has been efficiently utilizing its assets to generate operating income. However, the slight decline in 2023 compared to 2022 warrants further investigation to understand the factors contributing to this change and to assess the company's future profitability prospects.
Peer comparison
Dec 31, 2023