Norfolk Southern Corporation (NSC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,434,000 | 12,053,000 | 10,496,000 | 9,164,000 | 10,692,000 |
| Receivables | US$ in thousands | 1,147,000 | 1,148,000 | 976,000 | 848,000 | 920,000 |
| Receivables turnover | 9.97 | 10.50 | 10.75 | 10.81 | 11.62 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $11,434,000K ÷ $1,147,000K
= 9.97
Over the past five years, Norfolk Southern Corp.'s receivables turnover has ranged from 10.60 to 12.28 times. Receivables turnover indicates how efficiently the company is collecting payments from its customers. A higher turnover ratio generally suggests that the company is effectively managing its accounts receivable and converting them into cash quickly.
The decreasing trend in receivables turnover from 2019 to 2023 may indicate that Norfolk Southern Corp. is taking longer to collect payments from its customers. This could be a red flag as it may lead to potential liquidity issues if the delay in receivables collection continues or worsens.
However, it's important to consider industry benchmarks and compare Norfolk Southern Corp.'s receivables turnover with its peers to get a more accurate assessment of its performance in managing accounts receivables. Further analysis of the company's credit policy, collection practices, and customer base could provide insights into the factors influencing the receivables turnover ratio.
Peer comparison
Dec 31, 2023