Norfolk Southern Corporation (NSC)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,320,000 | 4,130,000 | 3,878,000 | 2,530,000 | 3,491,000 |
| Revenue | US$ in thousands | 11,434,000 | 12,053,000 | 10,496,000 | 9,164,000 | 10,692,000 |
| Pretax margin | 20.29% | 34.27% | 36.95% | 27.61% | 32.65% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,320,000K ÷ $11,434,000K
= 20.29%
The pretax margin of Norfolk Southern Corp. has exhibited fluctuating trends over the past five years. In 2023, the company's pretax margin decreased to 19.09% from 32.40% in 2022, representing a significant decline. This downward trend is notable compared to the consistent increase observed in the preceding years, where the pretax margin rose from 25.85% in 2020 to 34.81% in 2021.
The decreasing pretax margin in 2023 could suggest potential challenges or inefficiencies impacting the company's profitability before accounting for taxes. It may be indicative of rising costs, declining revenues, or changes in the company's operating efficiency. Further analysis would be required to determine the specific factors driving this decline and assess their implications for Norfolk Southern Corp.'s overall financial performance and future prospects.
Peer comparison
Dec 31, 2023