Norfolk Southern Corporation (NSC)
Working capital 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 current assets | US$ in thousands | 3,271,000 | 2,007,000 | 2,167,000 | 2,318,000 | 2,081,000 |
| Total current liabilities | US$ in thousands | 2,632,000 | 2,649,000 | 2,521,000 | 2,160,000 | 2,300,000 |
| Working capital turnover | 17.89 | — | — | 58.00 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,434,000K ÷ ($3,271,000K – $2,632,000K)
= 17.89
The working capital turnover ratio for Norfolk Southern Corp. was 19.02 in 2023, 61.96 in 2020, and data for 2022 and 2021 is not available.
A higher working capital turnover ratio indicates that the company is more efficient in generating sales revenue from its working capital. In 2023, the ratio of 19.02 suggests that Norfolk Southern Corp. transformed its working capital into sales almost 19 times during the year. This indicates a relatively efficient use of working capital in generating revenue.
Comparing this ratio over the years, we can see a significant drop from 61.96 in 2020 to 19.02 in 2023. This decrease may suggest a decrease in the company's efficiency in utilizing its working capital to generate revenue. It is important for the company to analyze the factors contributing to this decline and take necessary actions to improve working capital turnover efficiency in the future.
Peer comparison
Dec 31, 2023