Norfolk Southern Corporation (NSC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 60.64% | 65.72% | 63.96% | 63.24% | 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% |
| Operating profit margin | 35.41% | 31.83% | 25.26% | 20.86% | 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% |
| Pretax margin | 28.96% | 25.92% | 19.45% | 15.59% | 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% |
| Net profit margin | 22.81% | 20.52% | 15.59% | 12.54% | 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% |
Norfolk Southern Corporation's profitability ratios have shown fluctuations over the analyzed periods. The Gross Profit Margin, representing the percentage of revenue retained after deducting the cost of goods sold, has been relatively high, ranging from 74.43% to 76.62% between March 2020 and June 2021. However, a downward trend is observed from December 2021 to December 2024, with the margin declining to 60.64%.
The Operating Profit Margin, which indicates the proportion of revenue remaining after deducting operating expenses, experienced significant variability. It ranged from a high of 42.37% in December 2021 to a low of 20.86% in March 2024. The margin declined notably towards the end of the period, dropping to 35.41% by December 2024.
The Pretax Margin, reflecting the percentage of revenue left after accounting for all operating expenses and before taxes, followed a similar pattern to the operating margin. It peaked at 36.95% in December 2021 but decreased progressively to 28.96% by December 2024.
Finally, the Net Profit Margin, which represents the percentage of revenue remaining after all expenses, including taxes, has shown a downward trajectory overall. It decreased from 28.63% in December 2021 to 22.81% in December 2024, reflecting challenges in maintaining profitability.
Overall, Norfolk Southern Corporation's profitability has faced pressures in recent periods, as evidenced by the declining trend in most profitability ratios, indicating the need for the company to focus on improving operational efficiencies and cost management to enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.32% | 8.66% | 6.83% | 5.59% | 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% |
| Return on assets (ROA) | 6.00% | 5.59% | 4.22% | 3.36% | 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% |
| Return on total capital | 28.58% | 27.60% | 23.15% | 19.99% | 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% |
| Return on equity (ROE) | 18.33% | 17.53% | 13.83% | 11.28% | 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% |
Norfolk Southern Corporation has shown a consistent improvement in profitability ratios over the analyzed period. The Operating Return on Assets (Operating ROA) increased from 9.59% in March 2020 to 12.37% in December 2022 before declining to 9.32% by December 2024.
The Return on Assets (ROA) also exhibited a similar trend, with a gradual increase from 6.48% in March 2020 to 6.00% by December 2024, experiencing fluctuations along the way.
Return on Total Capital steadily rose from 24.69% in March 2020 to peak at 37.87% by December 2022, then declined to 28.58% by December 2024.
Return on Equity (ROE) showed a general uptrend from 16.30% in March 2020 to 18.33% by December 2024, with some fluctuations in between. Overall, Norfolk Southern Corporation improved its profitability metrics, although there were some variations in performance over the analyzed period.
See also:
Norfolk Southern Corporation Profitability Ratios (Quarterly Data)