Norfolk Southern Corporation (NSC)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,525,000 | 4,037,000 | 4,150,000 | 4,147,000 | 4,055,000 | 4,021,000 | 4,138,000 | 4,206,000 | 4,133,000 | 3,941,000 | 3,641,000 | 3,434,000 | 3,295,000 | 3,189,000 | 3,075,000 | 2,927,000 | 2,936,000 | 3,119,000 | 3,320,000 | 3,626,000 |
| Inventory | US$ in thousands | 277,000 | 288,000 | 308,000 | 270,000 | 264,000 | 303,000 | 272,000 | 262,000 | 253,000 | 276,000 | 289,000 | 264,000 | 218,000 | 235,000 | 246,000 | 241,000 | 221,000 | 247,000 | 257,000 | 265,000 |
| Inventory turnover | 16.34 | 14.02 | 13.47 | 15.36 | 15.36 | 13.27 | 15.21 | 16.05 | 16.34 | 14.28 | 12.60 | 13.01 | 15.11 | 13.57 | 12.50 | 12.15 | 13.29 | 12.63 | 12.92 | 13.68 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,525,000K ÷ $277,000K
= 16.34
The inventory turnover of Norfolk Southern Corporation has fluctuated over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio reflects how efficiently the company is managing its inventory.
The highest inventory turnover was observed on December 31, 2024, with a ratio of 16.34, indicating that Norfolk Southern Corporation was able to convert its inventory into sales multiple times during that period. This suggests effective inventory management and potentially lower carrying costs.
On the other hand, the lowest turnover ratio was recorded on March 31, 2021, with a value of 12.15. This could imply that the company was holding onto its inventory for a longer period before selling it, which may lead to higher carrying costs and potential obsolescence risks.
Overall, the trend shows some variability in inventory turnover, with fluctuations between approximately 12 to 16 turns per year. This could be influenced by factors such as seasonality, changes in demand, supply chain disruptions, or inventory management practices within the organization. Tracking and analyzing these fluctuations can help management understand the effectiveness of inventory management strategies and make informed decisions to optimize inventory levels for enhanced profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024
See also:
Norfolk Southern Corporation Inventory Turnover (Quarterly Data)