Norfolk Southern Corporation (NSC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 4,095,000 | 4,193,000 | 4,225,000 | 4,193,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 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% | 26.97% | 27.52% | 27.59% | 27.35% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,042,000K ÷ ($—K + $12,781,000K)
= 23.80%
Norfolk Southern Corp.'s return on total capital has displayed some fluctuations over the past quarters. The return on total capital for the company ranged from 13.24% to 17.40% during the year 2023.
The return on total capital increased from 13.24% in Q4 2023 to 16.36% in Q2 2023, showing a significant improvement. However, it decreased slightly to 14.35% in Q3 2023 before rebounding to 17.40% in Q1 2023.
Comparing the Q4 results between 2023 and 2022, Norfolk Southern Corp.'s return on total capital decreased slightly from 17.23% in Q4 2022 to 13.24% in Q4 2023. However, the company managed to recover and improve its return on total capital throughout the quarters in 2023.
Overall, Norfolk Southern Corp.'s return on total capital trended positively over the quarters in 2023, with some fluctuations, showcasing the company's ability to generate returns from its total capital investment.
Peer comparison
Dec 31, 2023