Norfolk Southern Corporation (NSC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,827,000 | 3,270,000 | 3,005,000 | 2,013,000 | 2,722,000 |
| Total stockholders’ equity | US$ in thousands | 12,781,000 | 12,733,000 | 13,641,000 | 14,791,000 | 15,184,000 |
| ROE | 14.29% | 25.68% | 22.03% | 13.61% | 17.93% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,827,000K ÷ $12,781,000K
= 14.29%
Norfolk Southern Corp.'s return on equity (ROE) has fluctuated over the past five years, ranging from a low of 13.59% in 2020 to a high of 25.67% in 2022. The ROE for the most recent fiscal year ending on December 31, 2023, stands at 14.27%.
The downward trend in ROE from 2022 to 2023 suggests a decrease in the company's ability to generate profits from its shareholders' equity during this period. A lower ROE can indicate reduced efficiency in utilizing equity to generate earnings.
In comparison, the ROE for 2023 lags behind the levels seen in 2022 and 2021, indicating a potential decline in the company's profitability and efficiency in generating returns for its shareholders. Further analysis of the company's financial performance and strategic initiatives may be required to understand the factors contributing to the fluctuating ROE and to assess the company's overall financial health.
Peer comparison
Dec 31, 2023