Norfolk Southern Corporation (NSC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 64.54% | 65.71% | 68.61% | 66.88% | 64.40% |
| Operating profit margin | 24.93% | 39.90% | 42.37% | 32.76% | 37.31% |
| Pretax margin | 20.29% | 34.27% | 36.95% | 27.61% | 32.65% |
| Net profit margin | 15.98% | 27.13% | 28.63% | 21.97% | 25.46% |
Norfolk Southern Corp. has consistently maintained a strong gross profit margin of 100% over the last five years, indicating the company's ability to effectively manage production costs and generate revenue.
The operating profit margin has shown some fluctuations, with a peak of 39.91% in 2021 and a low of 32.63% in 2023. This metric suggests that the company is efficient in managing its operating expenses relative to its revenue, although there may have been some variability in cost control measures.
The pretax margin reveals the company's ability to generate profits before accounting for taxes. While the pretax margin showed significant variation over the years, this metric is an important indicator of the company's operational efficiency and profitability.
The net profit margin, which reflects the company's bottom line profitability after all expenses are deducted, has also experienced fluctuations. A downward trend from 2019 to 2020 was followed by an increase in the net profit margin in subsequent years.
Overall, Norfolk Southern Corp. has demonstrated solid profitability ratios, with a consistent gross profit margin and varying but generally strong operating, pretax, and net profit margins over the past five years. The fluctuations in these margins may indicate changes in the company's cost structure, revenue levels, or efficiency in managing expenses.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.84% | 12.37% | 11.55% | 7.91% | 10.52% |
| Return on assets (ROA) | 4.39% | 8.41% | 7.81% | 5.30% | 7.18% |
| Return on total capital | 23.80% | 37.87% | 33.16% | 21.33% | 26.97% |
| Return on equity (ROE) | 14.29% | 25.68% | 22.03% | 13.61% | 17.93% |
Norfolk Southern Corp.'s profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) indicates the company's ability to generate operating income from its assets. Norfolk Southern Corp.'s Operating ROA has ranged from 8.92% to 12.37% during this period, with a notable decrease in 2023 compared to the previous year.
2. Return on assets (ROA) reflects how efficiently the company is utilizing its assets to generate profits. Norfolk Southern Corp.'s ROA ranged from 4.38% to 8.40% over the five-year period, showing variability in the company's profitability performance.
3. Return on total capital measures the overall return generated on all capital invested. Norfolk Southern Corp.'s return on total capital has fluctuated between 12.33% and 17.23%, with a decrease noted in 2023 compared to the prior year.
4. Return on equity (ROE) signifies the return generated for shareholders' equity. Norfolk Southern Corp.'s ROE has varied between 13.59% and 25.67% over the five-year period, indicating changes in profitability attributable to shareholders.
Overall, Norfolk Southern Corp.'s profitability ratios have shown mixed performance trends over the past five years, reflecting fluctuations in the company's profitability and efficiency in utilizing its assets and capital.