CSX Corporation (CSX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,408,000 | 41,912,000 | 40,531,000 | 39,793,000 | 38,257,000 |
| Total stockholders’ equity | US$ in thousands | 12,133,000 | 12,625,000 | 13,500,000 | 13,110,000 | 11,863,000 |
| Financial leverage ratio | 3.50 | 3.32 | 3.00 | 3.04 | 3.22 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,408,000K ÷ $12,133,000K
= 3.50
The financial leverage ratio of CSX Corp. has shown variability over the past five years. In 2023, the ratio increased to 3.50 from 3.32 in 2022, indicating a higher level of financial leverage. This could signify that the company has increased its reliance on debt to finance its operations or investments.
Comparing the current ratio to the historical trend, it appears to be above the levels seen in 2021 and 2020, but below the ratio recorded in 2019. This suggests that CSX Corp. might be carrying a higher level of debt relative to its equity in 2023 compared to recent years, which could potentially raise concerns about the company's financial risk and solvency.
Further analysis of CSX Corp.'s overall financial health and debt management practices would be necessary to fully assess the implications of the changing financial leverage ratio over time.
Peer comparison
Dec 31, 2023