Stock Analysis on Net
Stock Analysis on Net
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CSX Corp. (NASDAQ:CSX)

Analysis of Operating Leases

Advanced level

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

CSX Corp., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 30, 2016
Total undiscounted future operating lease payments 1,577  396  448 
Discount rate1 16.20% 16.20% 15.60%
 
Total present value of future operating lease payments 303  226  257 

Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14).

1 Weighted-average discount rate for finance leases

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 16.20%
2019 58  2019 58  50 
2020 59  2020 59  44 
2021 54  2021 54  34 
2022 50  2022 50  27 
2023 44  2023 44  21 
2024 and thereafter 1,312  2024 44  18 
2025 44  15 
2026 44  13 
2027 44  11 
2028 44  10 
2029 44 
2030 44 
2031 44 
2032 44 
2033 44 
2034 44 
2035 44 
2036 44 
2037 44 
2038 44 
2039 44 
2040 44 
2041 44 
2042 44 
2043 44 
2044 44 
2045 44 
2046 44 
2047 44 
2048 44  — 
2049 44  — 
2050 44  — 
2051 44  — 
2052 44  — 
2053 36  — 
Total: 1,577  1,577  303 

Based on: 10-K (filing date: 2019-02-06).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 16.20%
2018 68  2018 68  59 
2019 64  2019 64  47 
2020 50  2020 50  32 
2021 45  2021 45  25 
2022 41  2022 41  19 
2023 and thereafter 128  2023 41  17 
2024 41  14 
2025 41  12 
2026
Total: 396  396  226 

Based on: 10-K (filing date: 2018-02-07).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 15.60%
2017 78  2017 78  67 
2018 66  2018 66  49 
2019 62  2019 62  40 
2020 49  2020 49  27 
2021 40  2021 40  19 
2022 and thereafter 153  2022 40  17 
2023 40  14 
2024 40  13 
2025 33 
Total: 448  448  257 

Based on: 10-K (filing date: 2017-02-14).


Adjustments to Financial Statements for Operating Leases

CSX Corp., adjustments to financial statements

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 30, 2016
Adjustment to Total Assets
Total assets (as reported) 39,793  38,257  36,729  35,739  35,414 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  —  303  226  257 
Total assets (adjusted) 39,793  38,257  37,032  35,965  35,671 
Adjustment to Total Debt
Total debt (as reported) 16,705  16,238  14,757  11,809  11,293 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  —  303  226  257 
Add: Current operating lease liabilities (recorded in Other current liabilities) 45  57  —  —  — 
Add: Long-term operating lease liability 455  493  —  —  — 
Total debt (adjusted) 17,205  16,788  15,060  12,035  11,550 

Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14).

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


CSX Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

CSX Corp., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 30, 2016
Total Asset Turnover1
Reported total asset turnover 0.27 0.31 0.33 0.32 0.31
Adjusted total asset turnover 0.27 0.31 0.33 0.32 0.31
Debt to Equity2
Reported debt to equity 1.28 1.37 1.17 0.80 0.97
Adjusted debt to equity 1.31 1.42 1.20 0.82 0.99
Return on Assets3 (ROA)
Reported ROA 6.95% 8.71% 9.01% 15.31% 4.84%
Adjusted ROA 6.95% 8.71% 8.94% 15.21% 4.81%

Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. CSX Corp.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. CSX Corp.’s adjusted debt to equity ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. CSX Corp.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

CSX Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 30, 2016
As Reported
Selected Financial Data (US$ in millions)
Revenue 10,583  11,937  12,250  11,408  11,069 
Total assets 39,793  38,257  36,729  35,739  35,414 
Activity Ratio
Total asset turnover1 0.27 0.31 0.33 0.32 0.31
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenue 10,583  11,937  12,250  11,408  11,069 
Adjusted total assets 39,793  38,257  37,032  35,965  35,671 
Activity Ratio
Adjusted total asset turnover2 0.27 0.31 0.33 0.32 0.31

Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14).

2020 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 10,583 ÷ 39,793 = 0.27

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 10,583 ÷ 39,793 = 0.27

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. CSX Corp.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 30, 2016
As Reported
Selected Financial Data (US$ in millions)
Total debt 16,705  16,238  14,757  11,809  11,293 
Shareholders’ equity, attributable to CSX 13,101  11,848  12,563  14,705  11,679 
Solvency Ratio
Debt to equity1 1.28 1.37 1.17 0.80 0.97
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 17,205  16,788  15,060  12,035  11,550 
Shareholders’ equity, attributable to CSX 13,101  11,848  12,563  14,705  11,679 
Solvency Ratio
Adjusted debt to equity2 1.31 1.42 1.20 0.82 0.99

Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14).

2020 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity, attributable to CSX
= 16,705 ÷ 13,101 = 1.28

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity, attributable to CSX
= 17,205 ÷ 13,101 = 1.31

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. CSX Corp.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 30, 2016
As Reported
Selected Financial Data (US$ in millions)
Net earnings 2,765  3,331  3,309  5,471  1,714 
Total assets 39,793  38,257  36,729  35,739  35,414 
Profitability Ratio
ROA1 6.95% 8.71% 9.01% 15.31% 4.84%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings 2,765  3,331  3,309  5,471  1,714 
Adjusted total assets 39,793  38,257  37,032  35,965  35,671 
Profitability Ratio
Adjusted ROA2 6.95% 8.71% 8.94% 15.21% 4.81%

Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14).

2020 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 2,765 ÷ 39,793 = 6.95%

2 Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 2,765 ÷ 39,793 = 6.95%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. CSX Corp.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.