Norfolk Southern Corporation (NSC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,089,000 | 3,804,000 | 3,004,000 | 2,506,000 | 3,042,000 | 3,411,000 | 3,885,000 | 4,509,000 | 4,822,000 | 4,757,000 | 4,637,000 | 4,582,000 | 4,524,000 | 4,401,000 | 4,130,000 | 3,587,000 | 3,155,000 | 3,108,000 | 3,247,000 | 3,675,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 14,306,000 | 13,785,000 | 12,979,000 | 12,536,000 | 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 |
| Return on total capital | 28.58% | 27.60% | 23.15% | 19.99% | 23.80% | 27.04% | 30.74% | 35.43% | 37.87% | 36.52% | 35.25% | 34.04% | 33.16% | 31.69% | 28.85% | 24.50% | 21.33% | 20.80% | 21.85% | 24.69% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,089,000K ÷ ($—K + $14,306,000K)
= 28.58%
The return on total capital of Norfolk Southern Corporation has shown a fluctuating trend over the past few years, starting at 24.69% in March 2020 and peaking at 37.87% in December 2022. There was a notable increase from June 2021 to December 2021, where the return on total capital rose from 28.85% to 33.16%. However, the metric began to decline steadily from March 2023 onwards, reaching 28.58% by December 2024.
The company's ability to generate returns relative to the total capital employed has been strong overall, with consistently positive percentages throughout the period. It is essential for investors and stakeholders to closely monitor this ratio to assess the efficiency of Norfolk Southern Corporation in utilizing its total capital to generate profits.
Peer comparison
Dec 31, 2024