Norfolk Southern Corporation (NSC)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 10,844,000 | 11,050,000 | 11,164,000 | 11,159,000 |
| Property, plant and equipment | US$ in thousands | 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 | 31,614,000 | 31,394,000 | 31,201,000 | 31,158,000 |
| Fixed asset turnover | 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 | 0.34 | 0.35 | 0.36 | 0.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,434,000K ÷ $33,326,000K
= 0.34
The fixed asset turnover for Norfolk Southern Corp. has been relatively stable over the past eight quarters, ranging between 0.36 and 0.40. This ratio indicates that, on average, the company generated $0.36 to $0.40 in revenue for every dollar invested in fixed assets during the respective quarters. A fixed asset turnover below 1 suggests that the company may not be efficiently utilizing its fixed assets to generate sales.
The slight improvement in the fixed asset turnover from Q4 2022 to Q1 2023 indicates a potential increase in efficiency in utilizing fixed assets to generate revenue. However, the subsequent decrease from Q1 2023 to Q4 2023 suggests a slight decline in this efficiency.
Overall, Norfolk Southern Corp. may benefit from further evaluation of its fixed asset utilization and strategies to improve the efficiency of its fixed asset turnover to drive higher revenue generation in the future.
Peer comparison
Dec 31, 2023
See also:
Norfolk Southern Corporation Net Fixed Asset Turnover (Quarterly Data)