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