Stock Analysis on Net
Stock Analysis on Net

Norfolk Southern Corp. (NYSE:NSC)

This company has been moved to the archive! The financial data has not been updated since April 27, 2022.

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Norfolk Southern Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Activity Ratio
Total Asset Turnover
Reported 0.29 0.26 0.30 0.32 0.30
Adjusted 0.29 0.26 0.30 0.31 0.29
Liquidity Ratio
Current Ratio
Reported 0.86 1.07 0.90 0.72 0.84
Adjusted 0.86 1.08 0.91 0.72 0.85
Solvency Ratios
Debt to Equity
Reported 1.01 0.86 0.80 0.73 0.60
Adjusted 0.68 0.60 0.58 0.54 0.46
Debt to Capital
Reported 0.50 0.46 0.45 0.42 0.38
Adjusted 0.41 0.38 0.37 0.35 0.31
Financial Leverage
Reported 2.82 2.57 2.50 2.36 2.18
Adjusted 1.85 1.75 1.72 1.69 1.60
Profitability Ratios
Net Profit Margin
Reported 26.97% 20.56% 24.10% 23.27% 51.22%
Adjusted 30.36% 20.93% 27.67% 23.74% 25.39%
Return on Equity (ROE)
Reported 22.03% 13.61% 17.93% 17.35% 33.03%
Adjusted 16.25% 9.43% 14.20% 12.46% 11.81%
Return on Assets (ROA)
Reported 7.81% 5.30% 7.18% 7.36% 15.13%
Adjusted 8.79% 5.40% 8.24% 7.39% 7.40%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Norfolk Southern Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Norfolk Southern Corp. adjusted current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Norfolk Southern Corp. adjusted debt-to-equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Norfolk Southern Corp. adjusted debt-to-capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Norfolk Southern Corp. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Norfolk Southern Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Norfolk Southern Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Norfolk Southern Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Norfolk Southern Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Railway operating revenues 11,142 9,789 11,296 11,458 10,551
Total assets 38,493 37,962 37,923 36,239 35,711
Activity Ratio
Total asset turnover1 0.29 0.26 0.30 0.32 0.30
Adjusted
Selected Financial Data (US$ in millions)
Railway operating revenues 11,142 9,789 11,296 11,458 10,551
Adjusted total assets2 38,501 37,968 37,932 36,813 36,218
Activity Ratio
Adjusted total asset turnover3 0.29 0.26 0.30 0.31 0.29

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Total asset turnover = Railway operating revenues ÷ Total assets
= 11,142 ÷ 38,493 = 0.29

2 Adjusted total assets. See details »

3 2021 Calculation
Adjusted total asset turnover = Railway operating revenues ÷ Adjusted total assets
= 11,142 ÷ 38,501 = 0.29

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Norfolk Southern Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Current assets 2,167 2,318 2,081 1,862 2,149
Current liabilities 2,521 2,160 2,300 2,591 2,545
Liquidity Ratio
Current ratio1 0.86 1.07 0.90 0.72 0.84
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 2,175 2,324 2,090 1,869 2,156
Current liabilities 2,521 2,160 2,300 2,591 2,545
Liquidity Ratio
Adjusted current ratio3 0.86 1.08 0.91 0.72 0.85

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,167 ÷ 2,521 = 0.86

2 Adjusted current assets. See details »

3 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 2,175 ÷ 2,521 = 0.86

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Norfolk Southern Corp. adjusted current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt 13,840 12,681 12,196 11,145 9,836
Stockholders’ equity 13,641 14,791 15,184 15,362 16,359
Solvency Ratio
Debt to equity1 1.01 0.86 0.80 0.73 0.60
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 14,253 13,114 12,734 11,712 10,336
Adjusted stockholders’ equity3 20,814 21,719 22,008 21,829 22,690
Solvency Ratio
Adjusted debt to equity4 0.68 0.60 0.58 0.54 0.46

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 13,840 ÷ 13,641 = 1.01

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 14,253 ÷ 20,814 = 0.68

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Norfolk Southern Corp. adjusted debt-to-equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt 13,840 12,681 12,196 11,145 9,836
Total capital 27,481 27,472 27,380 26,507 26,195
Solvency Ratio
Debt to capital1 0.50 0.46 0.45 0.42 0.38
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 14,253 13,114 12,734 11,712 10,336
Adjusted total capital3 35,067 34,833 34,742 33,541 33,026
Solvency Ratio
Adjusted debt to capital4 0.41 0.38 0.37 0.35 0.31

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 13,840 ÷ 27,481 = 0.50

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 14,253 ÷ 35,067 = 0.41

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Norfolk Southern Corp. adjusted debt-to-capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total assets 38,493 37,962 37,923 36,239 35,711
Stockholders’ equity 13,641 14,791 15,184 15,362 16,359
Solvency Ratio
Financial leverage1 2.82 2.57 2.50 2.36 2.18
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 38,501 37,968 37,932 36,813 36,218
Adjusted stockholders’ equity3 20,814 21,719 22,008 21,829 22,690
Solvency Ratio
Adjusted financial leverage4 1.85 1.75 1.72 1.69 1.60

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 38,493 ÷ 13,641 = 2.82

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 38,501 ÷ 20,814 = 1.85

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Norfolk Southern Corp. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income 3,005 2,013 2,722 2,666 5,404
Railway operating revenues 11,142 9,789 11,296 11,458 10,551
Profitability Ratio
Net profit margin1 26.97% 20.56% 24.10% 23.27% 51.22%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 3,383 2,049 3,126 2,720 2,679
Railway operating revenues 11,142 9,789 11,296 11,458 10,551
Profitability Ratio
Adjusted net profit margin3 30.36% 20.93% 27.67% 23.74% 25.39%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Railway operating revenues
= 100 × 3,005 ÷ 11,142 = 26.97%

2 Adjusted net income. See details »

3 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Railway operating revenues
= 100 × 3,383 ÷ 11,142 = 30.36%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Norfolk Southern Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income 3,005 2,013 2,722 2,666 5,404
Stockholders’ equity 13,641 14,791 15,184 15,362 16,359
Profitability Ratio
ROE1 22.03% 13.61% 17.93% 17.35% 33.03%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 3,383 2,049 3,126 2,720 2,679
Adjusted stockholders’ equity3 20,814 21,719 22,008 21,829 22,690
Profitability Ratio
Adjusted ROE4 16.25% 9.43% 14.20% 12.46% 11.81%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 3,005 ÷ 13,641 = 22.03%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2021 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 3,383 ÷ 20,814 = 16.25%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Norfolk Southern Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income 3,005 2,013 2,722 2,666 5,404
Total assets 38,493 37,962 37,923 36,239 35,711
Profitability Ratio
ROA1 7.81% 5.30% 7.18% 7.36% 15.13%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 3,383 2,049 3,126 2,720 2,679
Adjusted total assets3 38,501 37,968 37,932 36,813 36,218
Profitability Ratio
Adjusted ROA4 8.79% 5.40% 8.24% 7.39% 7.40%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 3,005 ÷ 38,493 = 7.81%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 3,383 ÷ 38,501 = 8.79%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Norfolk Southern Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.