Norfolk Southern Corporation (NSC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,622,000 | 1,827,000 | 3,270,000 | 3,005,000 | 2,013,000 |
| Total stockholders’ equity | US$ in thousands | 14,306,000 | 12,781,000 | 12,733,000 | 13,641,000 | 14,791,000 |
| ROE | 18.33% | 14.29% | 25.68% | 22.03% | 13.61% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,622,000K ÷ $14,306,000K
= 18.33%
Norfolk Southern Corporation's return on equity (ROE) has shown fluctuations over the years. The ROE increased from 13.61% on December 31, 2020, to 22.03% on December 31, 2021, indicating improved profitability generated from shareholders' equity. The trend continued as ROE further increased to 25.68% on December 31, 2022, reflecting strong efficiency in utilizing equity to generate profits.
However, in the following years, there was a slight decrease in ROE, with a rate of 14.29% on December 31, 2023, before recovering to 18.33% on December 31, 2024. While the ROE remained relatively high, the fluctuations could be due to various factors such as changes in income, expenses, or equity structure.
Overall, Norfolk Southern Corporation's ROE performance indicates a generally positive trend in profitability relative to shareholders' equity, with some variability in the recent years that may warrant further analysis to understand the underlying reasons for the fluctuations.
Peer comparison
Dec 31, 2024