Norfolk Southern Corporation (NSC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,136,000 | 3,042,000 | 4,822,000 | 4,524,000 | 3,155,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 14,306,000 | 12,781,000 | 12,733,000 | 13,641,000 | 14,791,000 |
| Return on total capital | 28.91% | 23.80% | 37.87% | 33.16% | 21.33% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,136,000K ÷ ($—K + $14,306,000K)
= 28.91%
Norfolk Southern Corporation's return on total capital has shown a positive trend over the specified years. The return on total capital increased from 21.33% as of December 31, 2020, to 33.16% as of December 31, 2021, and further to 37.87% as of December 31, 2022. However, there was a slight dip in the return on total capital to 23.80% as of December 31, 2023, before recovering to 28.91% as of December 31, 2024.
Overall, Norfolk Southern Corporation has demonstrated a generally solid performance in generating returns on its total capital during the analyzed period, with some fluctuations in the percentage figures. The upward trend in the return on total capital signifies the company's ability to efficiently utilize its total capital to generate profits and create value for its shareholders. It is essential for the company to continue monitoring and managing its capital effectively to sustain or improve these performance metrics in the future.
Peer comparison
Dec 31, 2024