CSX Corporation (CSX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,764,000 | 42,408,000 | 41,912,000 | 40,531,000 | 39,793,000 |
| Total stockholders’ equity | US$ in thousands | 12,507,000 | 12,128,000 | 12,625,000 | 13,500,000 | 13,110,000 |
| Financial leverage ratio | 3.42 | 3.50 | 3.32 | 3.00 | 3.04 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,764,000K ÷ $12,507,000K
= 3.42
The financial leverage ratio of CSX Corporation has shown some fluctuations over the past five years. It stood at 3.04 as of December 31, 2020, decreased to 3.00 by December 31, 2021, and then increased to 3.32 by December 31, 2022. The ratio further rose to 3.50 by December 31, 2023, before declining slightly to 3.42 by December 31, 2024.
These variations suggest that the company's reliance on debt to finance its operations has been fluctuating. A higher financial leverage ratio indicates that a company is using more debt in its capital structure, which can magnify returns when the business is performing well but also increase financial risk during economic downturns. Conversely, a lower ratio signifies less reliance on debt financing, which can offer more stability but potentially limit growth opportunities.
It is essential for investors and stakeholders to closely monitor CSX Corporation's financial leverage ratio trends over time to assess the company's overall risk profile and financial health.
Peer comparison
Dec 31, 2024