Norfolk Southern Corporation (NSC)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,123,000 | 11,434,000 | 12,053,000 | 10,496,000 | 9,164,000 |
| Receivables | US$ in thousands | 1,069,000 | 1,147,000 | 1,148,000 | 976,000 | 848,000 |
| Receivables turnover | 11.34 | 9.97 | 10.50 | 10.75 | 10.81 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,123,000K ÷ $1,069,000K
= 11.34
Norfolk Southern Corporation's receivables turnover has shown a relatively stable trend over the past five years. The turnover ratio decreased from 10.81 in December 2020 to 9.97 in December 2023, before rebounding to 11.34 in December 2024.
A high receivables turnover ratio indicates that Norfolk Southern is efficient in collecting payments from its customers. The slight fluctuations in the ratio suggest that the company has been managing its accounts receivables effectively over the years.
However, a decreasing trend may also indicate potential issues in collecting payments promptly, which could impact the company's cash flow and liquidity. It is essential for Norfolk Southern to monitor its receivables turnover ratio closely and take necessary steps to ensure timely collections in order to maintain a healthy financial position.
Peer comparison
Dec 31, 2024