Norfolk Southern Corporation (NSC)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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
The debt-to-capital ratio of Norfolk Southern Corp. has been relatively consistent over the past eight quarters, ranging from 0.52 to 0.57. This ratio indicates the proportion of the company's capital structure that is financed by debt.
A ratio of 0.57 in Q4 2023 and Q3 2023 suggests that approximately 57% of Norfolk Southern's capital is funded by debt, while the remaining 43% is covered by equity. The slight decrease in the ratio from Q3 to Q2 2023 and Q1 2023 indicates a potentially positive trend of reducing reliance on debt for financing.
Overall, the consistency in the debt-to-capital ratio implies that Norfolk Southern Corp. has managed its debt levels efficiently and maintained a stable capital structure over the analyzed period. It is crucial for the company to continue monitoring and managing its debt levels to ensure financial stability and sustainability in the long term.
Peer comparison
Dec 31, 2023
See also:
Norfolk Southern Corporation Debt to Capital (Quarterly Data)