CSX Corporation (CSX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,387,000 | 5,729,000 | 5,890,000 | 5,233,000 | 4,381,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,507,000 | 12,128,000 | 12,625,000 | 13,500,000 | 13,110,000 |
| Return on total capital | 43.07% | 47.24% | 46.65% | 38.76% | 33.42% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,387,000K ÷ ($—K + $12,507,000K)
= 43.07%
The return on total capital for CSX Corporation has displayed a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio has consistently increased from 33.42% in 2020 to 43.07% in 2024. This indicates that the company has been effectively utilizing its capital to generate returns for its stakeholders. The significant rise in return on total capital from 2020 to 2024, peaking at 47.24% in 2023, suggests improved efficiency and profitability in the utilization of both debt and equity capital. Overall, this upward trajectory in return on total capital reflects positively on CSX Corporation's financial performance and capital management strategies.
Peer comparison
Dec 31, 2024