Norfolk Southern Corporation (NSC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 41,652,000 | 38,885,000 | 38,493,000 | 37,962,000 | 37,923,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $41,652,000K
= 0.00
Over the past five years, Norfolk Southern Corp.'s debt-to-assets ratio has been steadily increasing. The ratio was at 0.32 in 2019 and has shown a consistent upward trend, reaching 0.41 in 2023. This indicates that the company's proportion of debt relative to its total assets has been on the rise.
A higher debt-to-assets ratio may suggest that Norfolk Southern Corp. is increasingly relying on debt financing to support its operations or expansion activities. While debt can provide leverage and tax benefits, it also poses financial risk, particularly in periods of economic downturn or rising interest rates.
Investors and creditors may closely monitor this trend to assess Norfolk Southern Corp.'s financial health and ability to meet its debt obligations. It is essential for the company to manage its debt levels prudently to maintain a balanced capital structure and financial stability.
Peer comparison
Dec 31, 2023