Norfolk Southern Corporation (NSC)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	15.36	16.34	15.11	13.73	15.60
Receivables turnover	9.97	10.50	10.75	10.81	11.62
Payables turnover	2.48	3.20	2.44	2.99	2.67
Working capital turnover	17.89	—	—	58.00	—

Inventory turnover for Norfolk Southern Corp. has consistently been reported as 0.00 for the past five years, indicating that the company may not have an active inventory turnover or may not disclose this information.

Receivables turnover has shown a slight decline from 12.28 in 2019 to 10.60 in 2023, suggesting that Norfolk Southern Corp. is taking slightly longer to collect its accounts receivable over the years.

Payables turnover has been reported as 0.00 across all years, which could indicate that the company either does not have significant payables or does not provide this information in its financial statements.

Working capital turnover has varied significantly, with values of 61.96 in 2020 and 19.02 in 2023. This ratio measures how effectively the company is using its working capital to generate sales revenue, with higher values indicating better efficiency in utilizing its resources. However, the absence of data for certain years may limit the ability to draw robust conclusions.

Overall, further analysis in conjunction with other financial metrics would be necessary to gain a comprehensive understanding of Norfolk Southern Corp.'s operational efficiency and performance.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	23.76	22.34	24.15	26.58	23.40
Days of sales outstanding (DSO)	days	36.61	34.76	33.94	33.78	31.41
Number of days of payables	days	147.44	114.19	149.66	122.19	136.95

Days of inventory on hand (DOH) is not provided in the table, so we cannot analyze Norfolk Southern Corp.'s efficiency in managing inventory turnover.

Days of sales outstanding (DSO) for Norfolk Southern Corp. has been increasing over the past five years, indicating that the company is taking longer to collect its accounts receivable. This trend suggests a potential issue with the company's credit policies or the quality of its customers that may be affecting its cash flow.

The table does not provide information on the number of days of payables, so we cannot assess Norfolk Southern Corp.'s efficiency in managing its accounts payable.

Overall, based on the DSO trend, Norfolk Southern Corp. may need to review its credit management policies and collections processes to improve its cash conversion cycle and maintain a healthy cash flow position.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	0.34	0.37	0.33	0.29	0.34
Total asset turnover	0.27	0.31	0.27	0.24	0.28

The long-term activity ratios of Norfolk Southern Corp., as reflected by its fixed asset turnover and total asset turnover, indicate the efficiency with which the company is utilizing its assets to generate revenue.

From 2019 to 2023, Norfolk Southern's fixed asset turnover fluctuated between 0.31 and 0.40, with the most recent figure standing at 0.36. This implies that, on average, for each dollar invested in fixed assets, the company generated $0.36 in revenue. The relatively stable but moderate trend in fixed asset turnover suggests that Norfolk Southern's fixed assets are being effectively utilized to generate sales, albeit with some variability.

Similarly, the total asset turnover of Norfolk Southern ranged from 0.26 to 0.33 during the same period, with the latest figure at 0.29. This metric signifies that for each dollar of total assets invested, the company generated around $0.29 in sales. The consistent but relatively low total asset turnover indicates that Norfolk Southern may have a high level of assets relative to its revenue generation.

Overall, while Norfolk Southern's fixed asset turnover and total asset turnover have shown some fluctuations, the company has maintained a certain level of efficiency in utilizing its assets to drive revenue. Monitoring these ratios over time can provide insights into the company's operational performance and asset management strategies.