Norfolk Southern Corporation (NSC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,123,000 | 11,434,000 | 12,053,000 | 10,496,000 | 9,164,000 |
| Property, plant and equipment | US$ in thousands | 35,831,000 | 33,326,000 | 32,156,000 | 31,653,000 | 31,345,000 |
| Fixed asset turnover | 0.34 | 0.34 | 0.37 | 0.33 | 0.29 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,123,000K ÷ $35,831,000K
= 0.34
The fixed asset turnover ratio for Norfolk Southern Corporation has shown a gradual improvement over the years from 0.29 in December 31, 2020, to 0.34 in both December 31, 2023, and December 31, 2024. This indicates that the company generated $0.34 in revenue for every dollar invested in fixed assets during those years. Although there was a slight dip in the ratio to 0.33 in December 31, 2021, the overall trend suggests that Norfolk Southern has become more efficient in utilizing its fixed assets to generate sales revenue. This improvement may indicate better operational efficiency or strategic asset management within the company. Monitoring this ratio over time can provide insights into the company's ability to effectively leverage its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024