Norfolk Southern Corporation (NSC)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 43,682,000 | 43,255,000 | 42,558,000 | 42,128,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 14,306,000 | 13,785,000 | 12,979,000 | 12,536,000 | 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 |
| Financial leverage ratio | 3.05 | 3.14 | 3.28 | 3.36 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $43,682,000K ÷ $14,306,000K
= 3.05
The financial leverage ratio of Norfolk Southern Corporation has shown a consistent upward trend over the past few years. The ratio increased from 2.52 as of March 31, 2020, to 3.05 as of December 31, 2024. This indicates that the company is relying more on debt financing relative to equity financing during this period.
There was a slight decrease in the ratio in the middle of 2024, dropping to 3.05 from 3.14 in September 30, 2024, but it picked up again in the following quarters. The gradual increase in the financial leverage ratio suggests that Norfolk Southern Corporation may be taking on more debt to support its operations, potentially leading to higher financial risk but also potentially higher returns.
It is essential for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and manage its financial leverage effectively in the long run.
Peer comparison
Dec 31, 2024
See also:
Norfolk Southern Corporation Financial Leverage (Quarterly Data)