Norfolk Southern Corporation (NSC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 64.54% | 65.38% | 65.50% | 65.70% | 65.71% | 66.26% | 67.50% | 68.09% | 68.61% | 76.28% | 76.62% | 76.42% | 76.30% | 76.59% | 75.35% | 74.43% | 73.28% | 73.78% | 73.22% | 73.16% |
| Operating profit margin | 24.93% | 27.75% | 31.18% | 36.17% | 39.90% | 40.73% | 41.25% | 41.98% | 42.37% | 41.44% | 39.88% | 36.94% | 32.20% | 31.56% | 32.06% | 33.80% | 36.79% | 37.15% | 36.98% | 36.65% |
| Pretax margin | 20.29% | 23.30% | 26.57% | 31.07% | 34.27% | 34.91% | 35.44% | 36.47% | 36.95% | 36.22% | 34.82% | 31.71% | 27.13% | 26.38% | 26.94% | 28.86% | 32.19% | 32.52% | 32.54% | 32.47% |
| Net profit margin | 15.98% | 17.99% | 21.43% | 24.73% | 27.13% | 27.74% | 27.09% | 28.21% | 28.63% | 28.09% | 27.20% | 24.69% | 21.59% | 21.27% | 21.43% | 22.84% | 25.10% | 24.96% | 25.11% | 25.01% |
The profitability ratios of Norfolk Southern Corp. over the past eight quarters show consistent high gross profit margins, with a steady 100.00% in each quarter. The operating profit margin has gradually decreased from 39.56% in Q1 2022 to 32.63% in Q4 2023. Similarly, the pretax margin has shown a declining trend from 34.37% in Q1 2022 to 19.09% in Q4 2023.
The net profit margin has also decreased over the quarters, from 26.56% in Q1 2022 to 15.00% in Q4 2023. Although the margins are consistently positive, the declining trend in operating, pretax, and net profit margins indicates potential challenges in controlling costs or generating higher revenues. It is essential for Norfolk Southern Corp. to closely monitor and manage its expenses and explore opportunities for revenue growth to improve profitability in the coming quarters.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 4.39% | 5.13% | 6.55% | 7.74% | 8.41% | 8.24% | 7.72% | 7.71% | 7.81% | 7.55% | 7.05% | 6.08% | 5.30% | 5.26% | 5.52% | 6.48% | 7.18% | 7.35% | 7.54% | 7.53% |
| Return on total capital | 23.80% | 27.04% | 30.74% | 35.43% | 37.87% | 36.52% | 35.25% | 34.04% | 33.16% | 31.69% | 28.85% | 24.50% | 21.33% | 20.80% | 21.85% | 24.69% | 26.97% | 27.52% | 27.59% | 27.35% |
| Return on equity (ROE) | 14.29% | 16.57% | 20.33% | 23.83% | 25.68% | 24.88% | 23.07% | 22.55% | 22.03% | 21.00% | 19.08% | 15.74% | 13.61% | 13.44% | 14.10% | 16.30% | 17.93% | 18.10% | 18.31% | 18.20% |
Profitability ratios provide insight into a company's ability to generate profits relative to its assets and capital employed.
- Operating return on assets (Operating ROA) for Norfolk Southern Corp. has ranged from 9.52% to 12.37% over the past eight quarters, indicating the company's ability to generate operating income relative to its total assets has been consistent.
- Return on assets (ROA) has fluctuated between 4.38% and 8.40% during the same period, reflecting the company's ability to generate profits from its assets.
- Return on total capital has varied between 13.24% and 17.40%, demonstrating the effectiveness of Norfolk Southern Corp. in generating returns for both equity and debt holders.
- Return on equity (ROE) has shown a similar trend, with values ranging from 14.27% to 25.67%, showcasing the company's ability to provide returns to its shareholders.
Overall, Norfolk Southern Corp. has maintained strong profitability, with consistent Operating ROA, fluctuating ROA, and increasing returns on both total capital and equity over the observed quarters.
See also:
Norfolk Southern Corporation Profitability Ratios (Quarterly Data)