CSX Corporation (CSX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 3.50 | 3.32 | 3.00 | 3.04 | 3.22 |
The solvency ratios of CSX Corp., as indicated by the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have shown some fluctuations over the past five years.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. CSX Corp. has maintained a relatively stable debt-to-assets ratio over the years, with a slight increase from 0.40 in 2021 to 0.44 in 2023. This suggests that 44% of CSX Corp.'s assets are funded by debt as of December 31, 2023.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of a company's capital structure that is funded by debt. CSX Corp.'s debt-to-capital ratio has also remained relatively consistent, hovering around the range of 0.55 to 0.60 over the past five years. As of December 31, 2023, this ratio stands at 0.60, indicating that 60% of CSX Corp.'s capital is funded through debt.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the extent to which a company is financed by debt relative to its shareholders' equity. CSX Corp. has witnessed fluctuations in this ratio, with an increase from 1.21 in 2021 to 1.53 in 2023. This indicates that for every dollar of equity, CSX Corp. has $1.53 in debt as of December 31, 2023.
4. Financial leverage ratio: The financial leverage ratio provides an indication of how much debt a company uses to finance its assets. CSX Corp.'s financial leverage ratio has shown variability but has generally trended upwards over the years, reaching 3.50 in 2023. This implies that CSX Corp. has utilized leverage to a greater extent compared to previous years to support its asset base.
Overall, the solvency ratios of CSX Corp. demonstrate a mix of stability and some changes in its capital structure and leverage levels over the past five years. These ratios provide insights into the company's ability to meet its long-term financial obligations and manage its financial risk.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.87 | 8.12 | 7.75 | 5.79 | 6.74 |
CSX Corp.'s interest coverage ratio has shown a relatively stable trend over the past five years, ranging from 5.92 to 8.26. A higher interest coverage ratio indicates that the company is better able to meet its interest obligations with its operating income. The company's interest coverage ratio of 7.57 in 2023 suggests that it is generating sufficient operating income to cover its interest expenses comfortably. This trend indicates that CSX Corp. has maintained a strong ability to service its debt obligations over the years, which is a positive sign of financial stability and viability.