Norfolk Southern Corporation (NSC)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,622,000 | 1,827,000 | 3,270,000 | 3,005,000 | 2,013,000 |
| Revenue | US$ in thousands | 12,123,000 | 11,434,000 | 12,053,000 | 10,496,000 | 9,164,000 |
| Net profit margin | 21.63% | 15.98% | 27.13% | 28.63% | 21.97% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $2,622,000K ÷ $12,123,000K
= 21.63%
Net profit margin is a crucial financial metric that indicates the percentage of revenue that translates into profit after all expenses have been deducted. Analyzing Norfolk Southern Corporation's net profit margin over the past five years reveals fluctuations in the company's profitability.
In 2020, Norfolk Southern Corporation had a net profit margin of 21.97%, indicating that for every dollar of revenue generated, the company retained approximately 21.97 cents as profit. The following year, in 2021, the net profit margin increased significantly to 28.63%, reflecting improved profitability and efficient cost management.
In 2022, the net profit margin slightly decreased to 27.13%, remaining at a relatively high level compared to the industry average. However, in 2023, there was a notable decline in net profit margin to 15.98%, which could be a concern for investors as it suggests a lower profitability level.
By the end of 2024, the net profit margin had recovered slightly to 21.63%. While this is an improvement from the previous year, it remains below the levels seen in 2021 and 2022. Overall, the fluctuation in Norfolk Southern Corporation's net profit margin over the years indicates the company's ability to effectively manage costs, generate revenue, and adapt to changing market conditions. Further analysis of the underlying factors driving these fluctuations would be necessary to understand the company's financial performance comprehensively.
Peer comparison
Dec 31, 2024