Norfolk Southern Corporation (NSC)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,329,000 | 2,320,000 | 4,130,000 | 3,878,000 | 2,530,000 |
| Revenue | US$ in thousands | 12,123,000 | 11,434,000 | 12,053,000 | 10,496,000 | 9,164,000 |
| Pretax margin | 27.46% | 20.29% | 34.27% | 36.95% | 27.61% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $3,329,000K ÷ $12,123,000K
= 27.46%
The pretax margin of Norfolk Southern Corporation has shown variability over the past five years. In 2021, the company achieved a significant increase in pretax margin, reaching 36.95%, indicating a strong profitability before tax expenses. This was followed by a slight decline in 2022 to 34.27%, still maintaining a relatively high margin. However, in 2023, the pretax margin decreased notably to 20.29%, which could be a cause for concern as it reflects a decreased profitability before tax. The company then experienced a rebound in 2024 with a pretax margin of 27.46%, showing signs of recovery. Overall, the trend in pretax margin suggests fluctuations in the company's profitability over the years, highlighting the need for careful monitoring and strategic decision-making to sustain and improve financial performance.
Peer comparison
Dec 31, 2024