Norfolk Southern Corporation (NSC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| 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 |
| Debt-to-equity 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 |
| 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 |
The solvency ratios of Norfolk Southern Corporation indicate a consistently low level of debt in relation to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been recorded at 0.00 across multiple periods, suggesting that the company operates with minimal reliance on debt financing.
Additionally, the Financial leverage ratio has shown a gradual increase over the periods, indicating a rise in the level of debt relative to equity. This could be a signal of increased financial risk or leverage within the company, although the ratio values remain relatively low compared to other industries.
Overall, the solvency ratios of Norfolk Southern Corporation reflect a conservative financial position with a low debt burden and a stable capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.07 | 4.74 | 3.84 | 3.35 | 4.21 | 4.85 | 5.56 | 6.45 | 6.97 | 7.00 | 6.95 | 6.96 | 7.00 | 6.87 | 6.53 | 5.72 | 5.05 | 5.04 | 5.31 | 6.03 |
Based on the provided data for Norfolk Southern Corporation, the interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio is a financial metric used to assess a company's ability to meet interest payments on its outstanding debt.
The interest coverage ratio for Norfolk Southern Corporation has ranged from a low of 3.35 on March 31, 2024, to a high of 7.00 on both December 31, 2021, and September 30, 2022. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating profits.
It is important to note that the interest coverage ratio for Norfolk Southern Corporation has experienced a downward trend from the peak in December 2021 to the end of December 2024. This decrease in the ratio may signal increasing financial risk, as a lower interest coverage ratio suggests the company may have difficulty meeting its interest payments from its earnings.
Overall, a consistent and sufficient interest coverage ratio is essential for a company like Norfolk Southern Corporation to demonstrate its financial stability and ability to manage its debt obligations effectively. Investors, creditors, and stakeholders closely monitor this ratio to assess the company's creditworthiness and financial health.
See also:
Norfolk Southern Corporation Solvency Ratios (Quarterly Data)