Norfolk Southern Corporation (NSC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,461,000 | 4,055,000 | 4,133,000 | 3,295,000 | 3,035,000 |
| Inventory | US$ in thousands | 277,000 | 264,000 | 253,000 | 218,000 | 221,000 |
| Inventory turnover | 16.10 | 15.36 | 16.34 | 15.11 | 13.73 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,461,000K ÷ $277,000K
= 16.10
Norfolk Southern Corporation's inventory turnover has shown a positive trend over the past five years, increasing from 13.73 in December 2020 to 16.10 in December 2024. This indicates that the company is managing its inventory more efficiently, as it is selling its inventory more frequently within a given period. A higher inventory turnover ratio generally implies that the company is effectively managing its inventory levels, reducing carrying costs, and minimizing the risk of obsolete inventory. The consistent growth in inventory turnover suggests that Norfolk Southern Corporation has been successful in optimizing its inventory management practices, which can positively impact its profitability and overall financial performance.
Peer comparison
Dec 31, 2024