Norfolk Southern Corporation (NSC)
Payables 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 |
| Payables | US$ in thousands | 1,704,000 | 1,638,000 | 1,293,000 | 1,351,000 | 1,016,000 |
| Payables turnover | 2.62 | 2.48 | 3.20 | 2.44 | 2.99 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,461,000K ÷ $1,704,000K
= 2.62
To analyze Norfolk Southern Corporation's payables turnover, we calculated the ratio based on the given data:
- December 31, 2020: 2.99
- December 31, 2021: 2.44
- December 31, 2022: 3.20
- December 31, 2023: 2.48
- December 31, 2024: 2.62
The payables turnover ratio measures how efficiently a company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently, which can be a sign of strong liquidity and good vendor relationships.
From the data provided, we can observe fluctuations in Norfolk Southern Corporation's payables turnover over the years. The ratio decreased from 2.99 in 2020 to 2.44 in 2021, suggesting a decrease in the company's efficiency in paying its suppliers. However, there was an improvement in 2022 with a ratio of 3.20, indicating better management of payables. Subsequently, the ratio dropped to 2.48 in 2023 and increased slightly to 2.62 in 2024.
Overall, Norfolk Southern Corporation's payables turnover shows variability over the years, which may warrant further investigation into the company's payment policies and supplier relationships to assess the impact on its liquidity and financial performance.
Peer comparison
Dec 31, 2024