Norfolk Southern Corporation (NSC)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 43,682,000 41,652,000 38,885,000 38,493,000 37,962,000
Total stockholders’ equity US$ in thousands 14,306,000 12,781,000 12,733,000 13,641,000 14,791,000
Financial leverage ratio 3.05 3.26 3.05 2.82 2.57

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $43,682,000K ÷ $14,306,000K
= 3.05

The financial leverage ratio for Norfolk Southern Corporation has shown an increasing trend over the past five years, rising from 2.57 in December 2020 to 3.05 in December 2022, before slightly dropping to 3.05 again in December 2024. This indicates that the company's reliance on debt to finance its operations and investments has been steadily increasing. The ratio surpassed 3.0 in December 2022, suggesting that the company's debt levels are relatively high compared to its equity. It further increased to 3.26 by the end of December 2023, signifying a higher proportion of debt in the company's capital structure. Overall, the rising trend in the financial leverage ratio indicates that Norfolk Southern Corporation has been taking on more debt relative to its equity in recent years.


Peer comparison

Dec 31, 2024

Company name
Symbol
Financial leverage ratio
Norfolk Southern Corporation
NSC
3.05
CSX Corporation
CSX
3.50
Union Pacific Corporation
UNP
4.01

See also:

Norfolk Southern Corporation Financial Leverage