Norfolk Southern Corporation (NSC)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,497,000 | 11,776,000 | 11,514,000 | 11,280,000 | 11,434,000 | 11,616,000 | 11,993,000 | 12,263,000 | 12,053,000 | 11,680,000 | 11,202,000 | 10,760,000 | 10,496,000 | 10,382,000 | 10,045,000 | 9,336,000 | 9,324,000 | 9,441,000 | 9,781,000 | 10,624,000 |
| Property, plant and equipment | US$ in thousands | 35,831,000 | 35,390,000 | 35,280,000 | 35,051,000 | 33,326,000 | 32,668,000 | 32,474,000 | 32,240,000 | 32,156,000 | 31,838,000 | 31,787,000 | 31,657,000 | 31,653,000 | 31,429,000 | 31,355,000 | 31,312,000 | 31,345,000 | 31,239,000 | 31,217,000 | 31,179,000 |
| Fixed asset turnover | 0.32 | 0.33 | 0.33 | 0.32 | 0.34 | 0.36 | 0.37 | 0.38 | 0.37 | 0.37 | 0.35 | 0.34 | 0.33 | 0.33 | 0.32 | 0.30 | 0.30 | 0.30 | 0.31 | 0.34 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,497,000K ÷ $35,831,000K
= 0.32
Norfolk Southern Corporation's fixed asset turnover ratio has shown fluctuation over the past five years, ranging from 0.30 to 0.38. The ratio measures how effectively the company is utilizing its fixed assets to generate revenue. A higher ratio indicates more efficient utilization of fixed assets in generating sales.
From March 31, 2020, to June 30, 2022, the fixed asset turnover ratio showed a gradual increase from 0.34 to 0.35, suggesting improved efficiency in generating revenue through fixed assets. However, there was a slight dip in the ratio by the end of September 2022, followed by a peak of 0.38 by March 31, 2023.
Subsequently, the ratio declined to 0.32 by December 31, 2024, indicating a decrease in the efficiency of utilizing fixed assets to generate sales. Overall, Norfolk Southern Corporation should continue to monitor its fixed asset turnover ratio to ensure optimal utilization of assets and strive to improve efficiency in generating revenue.
Peer comparison
Dec 31, 2024
See also:
Norfolk Southern Corporation Net Fixed Asset Turnover (Quarterly Data)