Norfolk Southern Corporation (NSC)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	15.60	15.56	16.53	18.58
Receivables turnover	9.97	9.60	11.01	10.48	10.50	10.15	9.27	10.06	10.75	10.99	10.67	9.89	11.00	10.69	11.90	11.95	11.79	11.36	10.74	10.65
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
Working capital turnover	17.89	50.95	—	—	—	—	45.17	—	—	33.28	46.50	172.89	59.01	16.45	23.57	—	—	—	—	—

Based on the data provided, Norfolk Southern Corp.'s activity ratios can be analyzed as follows:

1. Inventory Turnover: The inventory turnover ratio measures how effectively a company is managing its inventory. A consistently low or zero inventory turnover ratio, as seen in all reported quarters, could indicate excess inventory levels or slow-moving inventory.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company is collecting payments from its customers. Norfolk Southern Corp. shows relatively stable receivables turnover ratios across quarters, with values ranging from 10.18 to 11.65. This indicates that the company is collecting payments from customers at a relatively consistent pace.

3. Payables Turnover: The payables turnover ratio evaluates how quickly a company pays its suppliers. A zero value in all reported quarters suggests that Norfolk Southern Corp. may have not reported a payable turnover figure, making it challenging to assess this aspect of the company's operations.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. While specific data is missing for some quarters, the available figures show fluctuations in the working capital turnover ratio, with notable values such as 54.04 and 47.86. An increasing trend in this ratio could indicate that Norfolk Southern Corp. is effectively using its working capital to drive sales growth.

In summary, while Norfolk Southern Corp. demonstrates stable receivables turnover ratios, the lack of data for inventory turnover and payables turnover limits a comprehensive assessment of the company's overall activity ratios. Monitoring these ratios over time can provide valuable insights into the company's operational efficiency and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	23.76	27.50	23.99	22.74	22.34	25.56	28.97	28.06	24.15	26.90	29.20	30.05	27.47	28.91	28.25	26.68	23.40	23.46	22.08	19.64
Days of sales outstanding (DSO)	days	36.61	38.02	33.14	34.82	34.76	35.97	39.36	36.30	33.94	33.22	34.19	36.91	33.20	34.14	30.67	30.54	30.97	32.14	33.97	34.28
Number of days of payables	days	147.44	136.07	124.90	114.12	114.19	137.63	131.12	125.53	149.66	136.89	132.47	130.06	126.31	148.97	139.40	129.25	136.95	124.08	121.35	114.92

Based on the activity ratios data provided for Norfolk Southern Corp., we observe the following trends:

1. Days of Inventory on Hand (DOH): Unfortunately, specific data for DOH is missing from the table, which limits our ability to assess the efficiency of Norfolk Southern Corp. in managing its inventory levels across the quarters in question.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding decreased from Q3 2022 to Q2 2023, indicating an improvement in the company's ability to collect payments from customers more quickly. However, it increased slightly in Q3 2023 compared to the previous quarter, which could suggest a slight delay in collecting receivables.

3. Number of Days of Payables: Data regarding the Number of Days of Payables is not provided in the table, preventing us from analyzing Norfolk Southern Corp.'s payment practices and relationships with suppliers during the specified quarters.

In conclusion, while the company's ability to collect payments from customers has shown some improvement over the quarters, the lack of data for inventory and payables hinders a comprehensive analysis of Norfolk Southern Corp.'s activity ratios and overall working capital management efficiency.

Long-term

	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
Fixed asset turnover	0.34	0.36	0.37	0.38	0.37	0.37	0.35	0.34	0.33	0.33	0.32	0.30	0.30	0.30	0.31	0.34	0.34	0.35	0.36	0.36
Total asset turnover	0.27	0.29	0.31	0.31	0.31	0.30	0.28	0.27	0.27	0.27	0.26	0.25	0.25	0.25	0.26	0.28	0.29	0.29	0.30	0.30

Norfolk Southern Corp.'s long-term activity ratios provide insight into how efficiently the company utilizes its assets to generate revenue.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company generates revenue from its fixed assets. In the case of Norfolk Southern Corp., the ratio has been relatively stable over the past eight quarters, ranging from 0.36 to 0.40. This indicates that the company is generating $0.36 to $0.40 in revenue for every dollar invested in fixed assets. A higher ratio suggests better utilization of fixed assets to generate sales.

2. Total Asset Turnover:
- The total asset turnover ratio reflects the company's ability to generate sales from all of its assets. Norfolk Southern Corp.'s total asset turnover ratio has also shown consistency over the quarters, ranging from 0.29 to 0.33. This implies that the company is generating $0.29 to $0.33 in revenue for every dollar of total assets. A higher ratio typically signifies efficient asset utilization for revenue generation.

Overall, while Norfolk Southern Corp.'s long-term activity ratios have been relatively stable, it is essential for the company to aim for improvements in these ratios over time to demonstrate more efficient utilization of assets in generating revenue. This could potentially lead to enhanced financial performance and profitability for the company.