Norfolk Southern Corporation (NSC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,055,000 | 4,133,000 | 3,295,000 | 3,035,000 | 3,806,000 |
| Inventory | US$ in thousands | 264,000 | 253,000 | 218,000 | 221,000 | 244,000 |
| Inventory turnover | 15.36 | 16.34 | 15.11 | 13.73 | 15.60 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,055,000K ÷ $264,000K
= 15.36
The inventory turnover ratio for Norfolk Southern Corp. for each of the past five years has been reported as 0.00. This indicates that there has been no cost of goods sold during these periods, resulting in zero inventory turnover. A low or zero inventory turnover can suggest various possible scenarios, such as overstocking of inventory, inadequate sales volume, or inefficient inventory management practices within the company. It is crucial for Norfolk Southern Corp. to assess and address the reasons behind the consistently low inventory turnover to optimize its inventory management efficiency, reduce carrying costs, and improve overall operational performance. Further analysis of the company's supply chain, demand forecasting, and inventory control mechanisms may be necessary to enhance inventory turnover and working capital management.
Peer comparison
Dec 31, 2023