CSX Corporation (CSX)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.50 | 3.50 | 3.36 | 3.36 | 3.32 | 3.28 | 3.07 | 3.07 | 3.00 | 3.05 | 2.98 | 3.02 | 3.04 | 3.10 | 3.20 | 3.27 | 3.22 | 3.27 | 3.09 | 3.07 |
The solvency ratios of CSX Corp. indicate the company's ability to meet its long-term financial obligations and the level of its financial leverage.
The debt-to-assets ratio has remained relatively stable around 0.43 to 0.44 over the past few quarters, suggesting that approximately 43% to 44% of the company's assets are financed by debt. This ratio indicates that CSX Corp. has a moderate level of debt relative to its total assets.
The debt-to-capital ratio and debt-to-equity ratio have also exhibited stability, with slight fluctuations but still within a relatively narrow range. The debt-to-capital ratio hovers between 0.59 and 0.61, implying that about 59% to 61% of the company's capital structure is composed of debt. Meanwhile, the debt-to-equity ratio ranges from 1.43 to 1.54, illustrating that CSX Corp. relies on debt financing for approximately 143% to 154% of its equity.
The financial leverage ratio has shown a consistent upward trend, increasing from 3.07 in Q1 2022 to 3.50 in Q4 2023. This ratio signifies that the company's assets are leveraged by approximately 3.50 times compared to its equity. The rising trend in the financial leverage ratio indicates an increasing reliance on debt to fund the company's operations and investments.
Overall, the solvency ratios of CSX Corp. suggest a stable and moderate level of indebtedness, with a gradual increase in financial leverage over the quarters, highlighting a potential shift towards higher reliance on debt financing. It is essential for investors and stakeholders to monitor these ratios to assess the company's financial risk and ability to repay its obligations in the long run.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 32.91 | 34.76 | 45.68 | 60.83 | 98.74 | 141.19 | 47.83 | 35.21 | 29.44 | 27.35 | 25.87 | 21.86 | 23.20 | 22.88 | 25.85 | 28.63 | 26.55 | 29.94 | 28.46 | 102.94 |
The interest coverage ratio for CSX Corp. has been relatively stable and consistently above 7 in the past eight quarters, ranging from 7.37 to 8.29. This indicates the company's ability to comfortably meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio suggests that CSX Corp. has more than enough operating income to cover its interest expenses, reflecting a lower financial risk for the company as it indicates a strong capacity to service its debt. Overall, the consistent and healthy interest coverage ratio for CSX Corp. illustrates its financial stability and ability to manage its debt obligations effectively over the analyzed period.