Norfolk Southern Corporation (NSC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,851,000 | 4,809,000 | 4,447,000 | 3,002,000 | 3,989,000 |
| Revenue | US$ in thousands | 11,434,000 | 12,053,000 | 10,496,000 | 9,164,000 | 10,692,000 |
| Operating profit margin | 24.93% | 39.90% | 42.37% | 32.76% | 37.31% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,851,000K ÷ $11,434,000K
= 24.93%
The operating profit margin of Norfolk Southern Corp. has shown a decreasing trend from 2019 to 2023. In 2021, the company achieved the highest operating profit margin of 39.91%, indicating strong operational efficiency in generating profits from its core business activities. However, this margin declined to 32.63% in 2023, reflecting a reduction in the percentage of revenue retained as operating profit.
The downward trend in the operating profit margin could be a cause for concern as it suggests a potential decrease in the company's ability to control costs and maintain profitability over the years. It is essential for Norfolk Southern Corp. to closely monitor its operating expenses and seek opportunities to improve operational efficiency to safeguard its profitability in the future.
Peer comparison
Dec 31, 2023