Norfolk Southern Corporation (NSC)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,827,000 | 2,090,000 | 2,570,000 | 3,033,000 | 3,270,000 | 3,240,000 | 3,035,000 | 3,035,000 | 3,005,000 | 2,916,000 | 2,732,000 | 2,305,000 | 2,013,000 | 2,008,000 | 2,096,000 | 2,426,000 | 2,722,000 | 2,758,000 | 2,803,000 | 2,791,000 |
| Total stockholders’ equity | US$ in thousands | 12,781,000 | 12,615,000 | 12,640,000 | 12,727,000 | 12,733,000 | 13,024,000 | 13,154,000 | 13,461,000 | 13,641,000 | 13,887,000 | 14,317,000 | 14,643,000 | 14,791,000 | 14,941,000 | 14,861,000 | 14,884,000 | 15,184,000 | 15,238,000 | 15,311,000 | 15,331,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,827,000K ÷ $12,781,000K
= 14.29%
The return on equity (ROE) of Norfolk Southern Corp. has exhibited a declining trend over the past eight quarters. In Q4 2022, the ROE was at its peak at 25.67%, gradually decreasing to 14.27% by Q4 2023. This indicates a decrease in the company's ability to generate profit from shareholders' equity over the period.
The ROE figures show that Norfolk Southern Corp.'s profitability relative to shareholders' equity has been diminishing consistently. The company's ability to generate income from shareholder investment has waned over the past quarters, which may raise concerns about its operational efficiency and effectiveness in utilizing shareholders' funds.
Investors and analysts may need to further investigate the causes behind this declining trend in ROE to understand the underlying factors impacting Norfolk Southern Corp.'s financial performance and make informed decisions regarding their investment in the company.
Peer comparison
Dec 31, 2023
See also:
Norfolk Southern Corporation Return on Equity (ROE) (Quarterly Data)