Norfolk Southern Corporation (NSC)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,851,000 | 3,224,000 | 3,740,000 | 4,435,000 | 4,809,000 | 4,757,000 | 4,621,000 | 4,517,000 | 4,447,000 | 4,302,000 | 4,006,000 | 3,449,000 | 3,002,000 | 2,980,000 | 3,136,000 | 3,591,000 | 3,989,000 | 4,105,000 | 4,129,000 | 4,090,000 |
| Total assets | US$ in thousands | 41,652,000 | 40,739,000 | 39,261,000 | 39,169,000 | 38,885,000 | 39,306,000 | 39,336,000 | 39,361,000 | 38,493,000 | 38,604,000 | 38,754,000 | 37,937,000 | 37,962,000 | 38,179,000 | 37,962,000 | 37,438,000 | 37,923,000 | 37,500,000 | 37,172,000 | 37,062,000 |
| Operating ROA | 6.84% | 7.91% | 9.53% | 11.32% | 12.37% | 12.10% | 11.75% | 11.48% | 11.55% | 11.14% | 10.34% | 9.09% | 7.91% | 7.81% | 8.26% | 9.59% | 10.52% | 10.95% | 11.11% | 11.04% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,851,000K ÷ $41,652,000K
= 6.84%
Operating Return on Assets (ROA) is a key financial ratio that measures a company's efficiency in generating operating income relative to its total assets. It indicates how well the company is utilizing its assets to generate profits from its core operations.
Analyzing Norfolk Southern Corp.'s operating ROA over the past eight quarters shows a general declining trend. The ratio started at a relatively high level of 12.37% in Q4 2022, but has gradually decreased to 9.52% in Q4 2023. This downward trend could suggest potential inefficiencies in the company's operations or challenges in optimizing asset utilization.
The peak operating ROA of 12.37% in Q4 2022 indicates that Norfolk Southern Corp. was effectively generating operating income in relation to its assets at that time. However, the subsequent decline in the ratio may raise concerns about the company's ability to maintain or improve its operational efficiency.
Further analysis of the factors influencing the operating ROA, such as changes in revenue, expenses, asset base, or overall industry conditions, would be necessary to provide a more detailed assessment of Norfolk Southern Corp.'s performance. It is vital for stakeholders to closely monitor this trend and identify opportunities for operational improvements to enhance the company's profitability and overall financial health.
Peer comparison
Dec 31, 2023