Norfolk Southern Corporation (NSC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $12,781,000K)
= 0.00
Over the past five years, Norfolk Southern Corp.'s debt-to-capital ratio has been gradually increasing, indicating a higher level of debt relative to the company's total capital structure. The ratio has risen from 0.45 in 2019 to 0.57 in 2023. This upward trend suggests that the company has been relying more on debt financing compared to its equity financing.
A higher debt-to-capital ratio can indicate increased financial risk, as higher levels of debt may lead to higher interest payments and debt obligations. However, it can also suggest that the company is taking advantage of low-interest rates to fund growth opportunities or acquisitions.
It is important for investors and stakeholders to monitor Norfolk Southern Corp.'s debt levels closely to ensure that the company can effectively manage its debt obligations and maintain a strong financial position. Comparing the debt-to-capital ratio to industry benchmarks and historical trends can provide further insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023