Norfolk Southern Corporation (NSC)
Payables 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 |
| Payables | US$ in thousands | 1,704,000 | 1,614,000 | 1,535,000 | 1,506,000 | 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 |
| Payables turnover | 2.66 | 2.50 | 2.70 | 2.75 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,525,000K ÷ $1,704,000K
= 2.66
Norfolk Southern Corporation's payables turnover ratio fluctuated over the period under analysis, ranging from a low of 2.45 in September 30, 2020, to a high of 3.20 in December 31, 2022, and March 31, 2023. The payables turnover ratio measures how efficiently a company is managing its trade payables by evaluating how many times during a period the company pays off its average accounts payable balance.
A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which may signify efficient cash management and good relationships with suppliers. Conversely, a lower payables turnover ratio can suggest that the company is taking longer to pay its suppliers, potentially straining relationships or indicating liquidity issues.
Overall, Norfolk Southern Corporation's payables turnover ratio experienced fluctuations but generally remained within a reasonable range, indicating a certain level of stability in managing its trade payables over the analyzed period.
Peer comparison
Dec 31, 2024
See also:
Norfolk Southern Corporation Payables Turnover (Quarterly Data)