Norfolk Southern Corporation (NSC)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 3,806,000 | 4,139,000 | 4,232,000 | 4,237,000 |
| Payables | US$ in thousands | 1,638,000 | 1,499,000 | 1,416,000 | 1,315,000 | 1,293,000 | 1,486,000 | 1,308,000 | 1,181,000 | 1,351,000 | 1,196,000 | 1,116,000 | 1,043,000 | 1,016,000 | 1,273,000 | 1,268,000 | 1,284,000 | 1,428,000 | 1,407,000 | 1,407,000 | 1,334,000 |
| Payables turnover | 2.48 | 2.68 | 2.92 | 3.20 | 3.20 | 2.65 | 2.78 | 2.91 | 2.44 | 2.67 | 2.76 | 2.81 | 2.89 | 2.45 | 2.62 | 2.82 | 2.67 | 2.94 | 3.01 | 3.18 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,055,000K ÷ $1,638,000K
= 2.48
Based on the data provided, Norfolk Southern Corp. has consistently reported a payables turnover ratio of 0.00 for each quarter spanning from Q1 2022 to Q4 2023. The payables turnover ratio indicates the efficiency with which a company manages its accounts payable. A payables turnover ratio of 0.00 signals that Norfolk Southern Corp. is not effectively utilizing its accounts payable to support its operations or generate revenues.
This sustained 0.00 payables turnover ratio may imply that Norfolk Southern Corp. is not promptly paying its suppliers or is not effectively leveraging its trade credit terms. A low or stagnant payables turnover ratio could potentially lead to strained supplier relationships, unfavorable credit terms, or cash flow inefficiencies.
It is essential for Norfolk Southern Corp. to assess and address the reasons behind the consistently low payables turnover ratio to enhance its operational efficiency, strengthen supplier relationships, and improve its overall financial health. Additional in-depth analysis of the company's payables management practices and working capital management may be warranted to identify potential areas for improvement.
Peer comparison
Dec 31, 2023
See also:
Norfolk Southern Corporation Payables Turnover (Quarterly Data)