Norfolk Southern Corporation (NSC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,434,000 | 12,053,000 | 10,496,000 | 9,164,000 | 10,692,000 |
| Property, plant and equipment | US$ in thousands | 33,326,000 | 32,156,000 | 31,653,000 | 31,345,000 | 31,614,000 |
| Fixed asset turnover | 0.34 | 0.37 | 0.33 | 0.29 | 0.34 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,434,000K ÷ $33,326,000K
= 0.34
The fixed asset turnover ratio for Norfolk Southern Corp. has fluctuated over the past five years. In 2023, the ratio stood at 0.36, indicating that the company generated $0.36 in revenue for every $1 of fixed assets it owned during the year. This represents a slight decrease from the previous year's ratio of 0.40.
The trend over the five-year period shows some variability, with the ratio ranging from 0.31 to 0.40. Generally, a higher fixed asset turnover ratio is preferred as it suggests that the company is using its fixed assets more efficiently to generate revenue.
It is important for Norfolk Southern Corp. to analyze the factors contributing to the changes in the fixed asset turnover ratio over the years. This analysis can help identify areas for improvement in utilizing fixed assets more effectively to drive revenue generation.
Peer comparison
Dec 31, 2023