Norfolk Southern Corporation (NSC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,042,000 | 4,822,000 | 4,524,000 | 3,155,000 | 4,095,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,781,000 | 12,733,000 | 13,641,000 | 14,791,000 | 15,184,000 |
| Return on total capital | 23.80% | 37.87% | 33.16% | 21.33% | 26.97% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,042,000K ÷ ($—K + $12,781,000K)
= 23.80%
The return on total capital for Norfolk Southern Corp. has varied over the past five years. In 2023, the return on total capital was 13.24%, which was a decrease from the previous year's 17.23%. Despite the decrease, the company's return on total capital in 2023 remained relatively healthy compared to 2020 and 2019 when it was 12.33% and 14.57%, respectively. The highest return on total capital was recorded in 2022 at 17.23%, indicating strong performance relative to the amount of capital utilized by the company during that year. Overall, Norfolk Southern Corp.'s return on total capital has shown some fluctuations, but the company has generally been effective in generating returns for its total capital investments over the past five years.
Peer comparison
Dec 31, 2023