Norfolk Southern Corporation (NSC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 41,652,000 | 38,885,000 | 38,493,000 | 37,962,000 | 37,923,000 |
| Operating ROA | 6.84% | 12.37% | 11.55% | 7.91% | 10.52% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,851,000K ÷ $41,652,000K
= 6.84%
Norfolk Southern Corp.'s operating return on assets (operating ROA) has experienced fluctuations over the past five years. In 2023, the operating ROA stood at 9.52%, showing a slight decrease from the previous year's 12.37%. The 2023 figure is also lower compared to 2021 and 2019, where operating ROA was 11.55% and 10.52%, respectively.
The operating ROA of 9.52% in 2023 indicates that the company generated approximately $0.0952 in operating income for every dollar of assets. Despite the decline in 2023, Norfolk Southern Corp. has generally maintained a solid performance in utilizing its assets to generate operating income over the years.
It is essential for Norfolk Southern Corp. to analyze the factors contributing to the decrease in operating ROA in 2023 compared to the previous years. By identifying and addressing any inefficiencies or changes in the operating environment impacting asset utilization and operating income generation, the company can work towards improving its operating ROA in the future.
Peer comparison
Dec 31, 2023