Norfolk Southern Corporation (NSC)
Total asset 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 |
| Total assets | US$ in thousands | 41,652,000 | 38,885,000 | 38,493,000 | 37,962,000 | 37,923,000 |
| Total asset turnover | 0.27 | 0.31 | 0.27 | 0.24 | 0.28 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,434,000K ÷ $41,652,000K
= 0.27
The total asset turnover ratio for Norfolk Southern Corp. has shown some fluctuations over the past five years. In 2023, the total asset turnover ratio was 0.29, which indicates that the company generated $0.29 in revenue for every dollar of assets it held during that year. This represents a slight decrease from 0.33 in 2022 but remains consistent with the ratio of 0.29 in 2021.
The ratio of 0.29 in 2023 suggests that the company's efficiency in utilizing its assets to generate revenue has decreased compared to the previous year. However, it is important to note that the ratio is higher than the 0.26 and 0.30 ratios observed in 2020 and 2019, respectively.
A lower total asset turnover ratio may indicate that Norfolk Southern Corp. is not effectively using its assets to generate revenue, which could be a concern for investors and stakeholders. It may be necessary for the company to further analyze its asset management strategies to improve efficiency and profitability in the future.
Peer comparison
Dec 31, 2023