Norfolk Southern Corporation (NSC)
Payables 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 |
| Payables | US$ in thousands | 1,638,000 | 1,293,000 | 1,351,000 | 1,016,000 | 1,428,000 |
| Payables turnover | 2.48 | 3.20 | 2.44 | 2.99 | 2.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,055,000K ÷ $1,638,000K
= 2.48
The payables turnover ratio for Norfolk Southern Corp. has been recorded as 0.00 for the years 2019, 2020, 2021, 2022, and 2023. This indicates that the company is not effectively managing its accounts payable during these years. A payables turnover ratio of 0.00 suggests that Norfolk Southern Corp. is not paying its suppliers or vendors promptly or efficiently.
A low or zero payables turnover ratio can have several implications. It may indicate that the company is delaying payments to suppliers, potentially straining relationships or leading to unfavorable credit terms in the future. Delayed payments could also suggest cash flow issues within the company.
Furthermore, a consistently low payables turnover ratio could raise concerns about the company's operational efficiency and cash management strategies. It is essential for Norfolk Southern Corp. to assess its payables management practices and address any underlying issues that may be contributing to the consistently low payables turnover ratio to improve its financial health and overall performance.
Peer comparison
Dec 31, 2023