Norfolk Southern Corporation (NSC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 41,652,000 | 40,739,000 | 39,261,000 | 39,169,000 | 38,885,000 | 39,306,000 | 39,336,000 | 39,361,000 | 38,493,000 | 38,604,000 | 38,754,000 | 37,937,000 | 37,962,000 | 38,179,000 | 37,962,000 | 37,438,000 | 37,923,000 | 37,500,000 | 37,172,000 | 37,062,000 |
| 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 |
| Financial leverage ratio | 3.26 | 3.23 | 3.11 | 3.08 | 3.05 | 3.02 | 2.99 | 2.92 | 2.82 | 2.78 | 2.71 | 2.59 | 2.57 | 2.56 | 2.55 | 2.52 | 2.50 | 2.46 | 2.43 | 2.42 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $41,652,000K ÷ $12,781,000K
= 3.26
The financial leverage ratio of Norfolk Southern Corp. has been steadily increasing over the past year, from 2.92 in Q1 2022 to 3.26 in Q4 2023. This indicates that the company's reliance on debt to finance its operations and growth has been on the rise. A higher financial leverage ratio suggests that the company is more heavily relying on debt to fund its assets and operations compared to its equity.
This increasing trend in the financial leverage ratio may raise concerns about the company's financial stability and ability to meet its debt obligations, especially during economic downturns or periods of financial stress. Investors and creditors may view a higher financial leverage ratio as a sign of increased financial risk for the company.
It is important for Norfolk Southern Corp. to carefully manage its debt levels and ensure that it has the ability to generate sufficient cash flow to service its debt obligations. Monitoring and potentially reducing the financial leverage ratio could help strengthen the company's financial position and mitigate risks associated with high levels of debt.
Peer comparison
Dec 31, 2023
See also:
Norfolk Southern Corporation Financial Leverage (Quarterly Data)