Norfolk Southern Corporation (NSC)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 22.34 | 26.04 | 27.09 | 23.76 | 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 |
| Days of sales outstanding (DSO) | days | 33.94 | 40.36 | 37.69 | 38.77 | 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 |
| Number of days of payables | days | 137.45 | 145.93 | 135.01 | 132.55 | 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 |
| Cash conversion cycle | days | -81.17 | -79.53 | -70.22 | -70.02 | -87.06 | -70.54 | -67.77 | -56.56 | -57.08 | -76.10 | -62.79 | -61.17 | -91.57 | -76.77 | -69.08 | -63.10 | -65.64 | -85.93 | -80.47 | -72.03 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.34 + 33.94 – 137.45
= -81.17
The cash conversion cycle for Norfolk Southern Corporation has shown a consistent trend of negative days over the period from March 2020 to December 2024. This indicates that the company is efficiently managing its working capital and converting its investments in inventory and accounts receivable into cash quickly.
The cycle has ranged from approximately -56 days to -91 days, with shorter cycles generally being more favorable as they indicate faster cash generation. Norfolk Southern Corporation has demonstrated a relatively stable and efficient cash conversion cycle throughout the observed period, suggesting strong control over its operations and ability to collect receivables and manage inventory effectively.
Overall, the consistently negative cash conversion cycle highlights Norfolk Southern Corporation's ability to optimize its working capital management and efficiently convert its assets into cash, which is beneficial for sustaining liquidity and financial health.
Peer comparison
Dec 31, 2024
See also:
Norfolk Southern Corporation Cash Conversion Cycle (Quarterly Data)