An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

CSX Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	41,912)	40,531)	39,793)	38,257)	36,729)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	303)
Total assets (adjusted)	41,912)	40,531)	39,793)	38,257)	37,032)
Adjustment to Total Debt
Total debt (as reported)	18,047)	16,366)	16,705)	16,238)	14,757)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	303)
Add: Current operating lease liabilities (recorded in Other current liabilities)	69)	64)	45)	57)	—)
Add: Long-term operating lease liability	488)	478)	455)	493)	—)
Total debt (adjusted)	18,604)	16,908)	17,205)	16,788)	15,060)

Based on: 10-K (reporting date: 2022-12-31), 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).

^{1, 2} Equal to total present value of future operating lease payments.

CSX Corp., Financial Data: Reported vs. Adjusted

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CSX Corp., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Total Asset Turnover¹
Reported total asset turnover	0.35	0.31	0.27	0.31	0.33
Adjusted total asset turnover	0.35	0.31	0.27	0.31	0.33
Debt to Equity²
Reported debt to equity	1.43	1.21	1.28	1.37	1.17
Adjusted debt to equity	1.47	1.25	1.31	1.42	1.20
Return on Assets³ (ROA)
Reported ROA	9.94%	9.33%	6.95%	8.71%	9.01%
Adjusted ROA	9.94%	9.33%	6.95%	8.71%	8.94%

Based on: 10-K (reporting date: 2022-12-31), 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).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	CSX Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	CSX Corp. adjusted debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	CSX Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

CSX Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenue	14,853)	12,522)	10,583)	11,937)	12,250)
Total assets	41,912)	40,531)	39,793)	38,257)	36,729)
Activity Ratio
Total asset turnover¹	0.35	0.31	0.27	0.31	0.33
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenue	14,853)	12,522)	10,583)	11,937)	12,250)
Adjusted total assets	41,912)	40,531)	39,793)	38,257)	37,032)
Activity Ratio
Adjusted total asset turnover²	0.35	0.31	0.27	0.31	0.33

Based on: 10-K (reporting date: 2022-12-31), 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).

2022 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 14,853 ÷ 41,912 = 0.35

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 14,853 ÷ 41,912 = 0.35

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	CSX Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total debt	18,047)	16,366)	16,705)	16,238)	14,757)
Shareholders’ equity, attributable to CSX	12,615)	13,490)	13,101)	11,848)	12,563)
Solvency Ratio
Debt to equity¹	1.43	1.21	1.28	1.37	1.17
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	18,604)	16,908)	17,205)	16,788)	15,060)
Shareholders’ equity, attributable to CSX	12,615)	13,490)	13,101)	11,848)	12,563)
Solvency Ratio
Adjusted debt to equity²	1.47	1.25	1.31	1.42	1.20

Based on: 10-K (reporting date: 2022-12-31), 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).

2022 Calculations

¹ Debt to equity = Total debt ÷ Shareholders’ equity, attributable to CSX
= 18,047 ÷ 12,615 = 1.43

² Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity, attributable to CSX
= 18,604 ÷ 12,615 = 1.47

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	CSX Corp. adjusted debt-to-equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,166)	3,781)	2,765)	3,331)	3,309)
Total assets	41,912)	40,531)	39,793)	38,257)	36,729)
Profitability Ratio
ROA¹	9.94%	9.33%	6.95%	8.71%	9.01%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings	4,166)	3,781)	2,765)	3,331)	3,309)
Adjusted total assets	41,912)	40,531)	39,793)	38,257)	37,032)
Profitability Ratio
Adjusted ROA²	9.94%	9.33%	6.95%	8.71%	8.94%

Based on: 10-K (reporting date: 2022-12-31), 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).

2022 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,166 ÷ 41,912 = 9.94%

² Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 4,166 ÷ 41,912 = 9.94%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	CSX Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

CSX Corp. (NASDAQ:CSX)

Analysis of Operating Leases

Adjustments to Financial Statements for Operating Leases

CSX Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

CSX Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)