CSX Corporation (CSX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.42 | 3.50 | 3.32 | 3.00 | 3.04 |
CSX Corporation has consistently maintained a strong solvency position based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been at 0.00 over the past five years, indicating that the company has not relied heavily on debt to finance its operations and investments.
The financial leverage ratio, on the other hand, has fluctuated slightly over the same period, starting at 3.04 in 2020 and ranging between 3.00 and 3.50 before settling at 3.42 in 2024. This ratio indicates the extent to which the company's operations are funded by debt relative to its equity. Despite the fluctuations, the financial leverage ratio has remained within a reasonable range, suggesting that CSX Corporation has been effectively managing its debt levels in relation to its equity.
Overall, the solvency ratios of CSX Corporation reflect a conservative approach to capital structure and financial management, which bodes well for the company's long-term financial health and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.47 | 7.08 | 7.94 | 7.25 | 5.81 |
The interest coverage ratio of CSX Corporation has shown a generally positive trend over the past five years. Starting at 5.81 on December 31, 2020, the ratio has steadily increased to reach 7.25 on December 31, 2021, 7.94 on December 31, 2022, before slightly declining to 7.08 on December 31, 2023, and further down to 6.47 on December 31, 2024.
This indicates that CSX Corporation has been able to cover its interest expenses comfortably over the years, with the ratio consistently above 1. A higher interest coverage ratio signifies that the company is generating sufficient operating income to meet its interest obligations, reflecting a lower risk of default.
However, the slight decline in the interest coverage ratio in the latter years may warrant further analysis to ensure that CSX Corporation can continue to service its debt obligations effectively and efficiently.