Return on Equity (ROE)
since 2005
Calculation
CSX Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings1 | ÷ | Shareholders’ equity, attributable to CSX1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 33.02% | = | 100 | × | 4,166) | ÷ | 12,615) |
| Dec 31, 2021 | 28.03% | = | 100 | × | 3,781) | ÷ | 13,490) |
| Dec 31, 2020 | 21.11% | = | 100 | × | 2,765) | ÷ | 13,101) |
| Dec 31, 2019 | 28.11% | = | 100 | × | 3,331) | ÷ | 11,848) |
| Dec 31, 2018 | 26.34% | = | 100 | × | 3,309) | ÷ | 12,563) |
| Dec 31, 2017 | 37.21% | = | 100 | × | 5,471) | ÷ | 14,705) |
| Dec 30, 2016 | 14.68% | = | 100 | × | 1,714) | ÷ | 11,679) |
| Dec 25, 2015 | 16.89% | = | 100 | × | 1,968) | ÷ | 11,652) |
| Dec 26, 2014 | 17.28% | = | 100 | × | 1,927) | ÷ | 11,152) |
| Dec 27, 2013 | 17.78% | = | 100 | × | 1,864) | ÷ | 10,483) |
| Dec 28, 2012 | 20.68% | = | 100 | × | 1,859) | ÷ | 8,988) |
| Dec 30, 2011 | 21.55% | = | 100 | × | 1,822) | ÷ | 8,455) |
| Dec 31, 2010 | 17.99% | = | 100 | × | 1,563) | ÷ | 8,686) |
| Dec 25, 2009 | 13.02% | = | 100 | × | 1,152) | ÷ | 8,846) |
| Dec 26, 2008 | 16.96% | = | 100 | × | 1,365) | ÷ | 8,048) |
| Dec 28, 2007 | 15.38% | = | 100 | × | 1,336) | ÷ | 8,685) |
| Dec 29, 2006 | 14.65% | = | 100 | × | 1,310) | ÷ | 8,942) |
| Dec 30, 2005 | 14.40% | = | 100 | × | 1,145) | ÷ | 7,954) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-30), 10-K (reporting date: 2015-12-25), 10-K (reporting date: 2014-12-26), 10-K (reporting date: 2013-12-27), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-25), 10-K (reporting date: 2008-12-26), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
1 US$ in millions
The financial performance between 2005 and 2022 is characterized by a significant expansion in profitability and an overall improvement in the efficiency of equity utilization. While the initial period showed steady but modest returns, the latter half of the timeline exhibits a higher baseline of Return on Equity (ROE), driven primarily by substantial growth in net earnings relative to the shareholders' equity base.
- Net Earnings Trends
- Net earnings displayed a consistent upward trajectory, rising from 1,145 million US$ in 2005 to 4,166 million US$ in 2022. A significant outlier occurred in 2017, where earnings peaked at 5,471 million US$, representing a sharp increase from the 1,714 million US$ reported in 2016. Following this peak, earnings stabilized and continued to grow, ranging between 2,765 million and 4,166 million US$ from 2018 through 2022.
- Shareholders' Equity Dynamics
- The equity attributable to shareholders remained relatively stable for the first decade, fluctuating between 7,954 million and 11,679 million US$. A peak in equity was recorded in 2017 at 14,705 million US$, followed by a moderate contraction and stabilization around 12,615 million US$ by 2022. The relationship between the growth in earnings and the relatively stable equity base suggests that the increase in ROE was driven by operational profitability rather than financial leverage or equity reduction.
- Return on Equity (ROE) Analysis
- ROE demonstrated three distinct phases. From 2005 to 2012, the ratio generally trended upward, reaching 21.55% in 2011. A subsequent period of moderation followed, with the ratio declining to 14.68% by 2016. A sharp escalation occurred in 2017, with ROE surging to 37.21%. In the final five years of the analysis, ROE remained elevated, consistently staying above 21% and concluding at 33.02% in 2022, indicating a structural improvement in the ability to generate profit from the equity investment.
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Comparison to Competitors
CSX Corp., ROE, long-term trends, comparison to competitors
| CSX Corp. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2022 | 33.02% | 15.34% | -124.54% | 57.54% | 10.69% | 58.36% |
| Dec 31, 2021 | 28.03% | 21.64% | -3.43% | 46.06% | -39.05% | 90.44% |
| Dec 31, 2020 | 21.11% | 7.03% | -55.18% | 31.54% | -118.61% | 204.41% |
| Dec 31, 2019 | 28.11% | 3.04% | -59.94% | 32.65% | 26.09% | 135.90% |
| Dec 31, 2018 | 26.34% | 23.55% | — | 29.21% | 21.30% | 158.59% |
| Dec 31, 2017 | 37.21% | 18.65% | — | 43.10% | 24.20% | 491.00% |
| Dec 30, 2016 | 14.68% | 13.20% | — | 21.24% | 26.13% | 847.16% |
| Dec 25, 2015 | 16.89% | 7.00% | — | 23.05% | 81.86% | 196.11% |
| Dec 26, 2014 | 17.28% | 13.73% | — | 24.45% | 47.25% | 141.62% |
| Dec 27, 2013 | 17.78% | 8.97% | — | 20.67% | 19.14% | 67.53% |
| Dec 28, 2012 | 20.68% | 13.80% | — | 19.84% | -150.31% | 17.34% |
| Dec 30, 2011 | 21.55% | 9.54% | — | 17.72% | 46.51% | 54.07% |
| Dec 31, 2010 | 17.99% | 8.57% | — | 15.65% | 14.65% | 43.71% |
| Dec 25, 2009 | 13.02% | 0.72% | — | 11.20% | — | 28.20% |
| Dec 26, 2008 | 16.96% | 7.74% | — | 15.14% | — | 44.29% |
| Dec 28, 2007 | 15.38% | 15.93% | — | 11.90% | 16.67% | 3.14% |
| Dec 29, 2006 | 14.65% | 15.69% | — | 10.49% | 1,064.99% | 27.14% |
| Dec 30, 2005 | 14.40% | 15.11% | — | 7.49% | — | 22.92% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-30), 10-K (reporting date: 2015-12-25), 10-K (reporting date: 2014-12-26), 10-K (reporting date: 2013-12-27), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-25), 10-K (reporting date: 2008-12-26), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
Comparison to Sector (Transportation)
CSX Corp., ROE, long-term trends, comparison to sector (transportation)
| CSX Corp. | Transportation | |
|---|---|---|
| Dec 31, 2022 | 33.02% | 19.64% |
| Dec 31, 2021 | 28.03% | 30.78% |
| Dec 31, 2020 | 21.11% | -10.82% |
| Dec 31, 2019 | 28.11% | 8.33% |
| Dec 31, 2018 | 26.34% | 33.03% |
| Dec 31, 2017 | 37.21% | 40.90% |
| Dec 30, 2016 | 14.68% | 27.46% |
| Dec 25, 2015 | 16.89% | 38.20% |
| Dec 26, 2014 | 17.28% | 27.90% |
| Dec 27, 2013 | 17.78% | 22.65% |
| Dec 28, 2012 | 20.68% | 15.25% |
| Dec 30, 2011 | 21.55% | 22.02% |
| Dec 31, 2010 | 17.99% | 18.67% |
| Dec 25, 2009 | 13.02% | 9.88% |
| Dec 26, 2008 | 16.96% | 3.26% |
| Dec 28, 2007 | 15.38% | 10.87% |
| Dec 29, 2006 | 14.65% | 68.59% |
| Dec 30, 2005 | 14.40% | -101.45% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-30), 10-K (reporting date: 2015-12-25), 10-K (reporting date: 2014-12-26), 10-K (reporting date: 2013-12-27), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-25), 10-K (reporting date: 2008-12-26), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
Comparison to Industry (Industrials)
CSX Corp., ROE, long-term trends, comparison to industry (industrials)
| CSX Corp. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 33.02% | 15.38% |
| Dec 31, 2021 | 28.03% | 15.38% |
| Dec 31, 2020 | 21.11% | 0.24% |
| Dec 31, 2019 | 28.11% | 14.56% |
| Dec 31, 2018 | 26.34% | 17.95% |
| Dec 31, 2017 | 37.21% | 18.24% |
| Dec 30, 2016 | 14.68% | 21.69% |
| Dec 25, 2015 | 16.89% | 16.11% |
| Dec 26, 2014 | 17.28% | 19.68% |
| Dec 27, 2013 | 17.78% | 16.40% |
| Dec 28, 2012 | 20.68% | 17.20% |
| Dec 30, 2011 | 21.55% | 20.10% |
| Dec 31, 2010 | 17.99% | 16.41% |
| Dec 25, 2009 | 13.02% | 12.84% |
| Dec 26, 2008 | 16.96% | 20.74% |
| Dec 28, 2007 | 15.38% | 20.36% |
| Dec 29, 2006 | 14.65% | 32.16% |
| Dec 30, 2005 | 14.40% | 7.80% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-30), 10-K (reporting date: 2015-12-25), 10-K (reporting date: 2014-12-26), 10-K (reporting date: 2013-12-27), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-25), 10-K (reporting date: 2008-12-26), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).