CSX Corp. (NASDAQ:CSX)

Total Asset Turnover

The reported and adjusted total asset turnover ratios experienced a decline from 0.33 in 2018 to 0.27 in 2020, indicating reduced efficiency in using assets to generate sales. However, a recovery is visible in 2021 and 2022, with ratios increasing to 0.31 and 0.35 respectively, suggesting an improvement in asset utilization in the more recent years.

Current Ratio

The current ratio, both reported and adjusted, increased sharply from 1.34/1.35 in 2018 to peaks of 2.2/2.21 in 2020, reflecting a significant strengthening of short-term liquidity during that period. This was followed by declines in 2021 and 2022, settling around 1.56 to 1.57, implying a normalization but still maintaining healthy liquidity levels.

Debt to Equity

The reported debt to equity ratio showed fluctuations, initially rising from 1.17 in 2018 to 1.37 in 2019, then declining to 1.21 in 2021 before increasing again to 1.43 in 2022, indicating a variable leverage approach. The adjusted figures remain consistently lower but exhibit a similar pattern, moving between 0.78 and 0.92, which suggests conservative adjustments and a moderate reliance on debt financing relative to equity.

Debt to Capital

Debt to capital ratios remained relatively stable, with reported values ranging from 0.54 to 0.59 and adjusted values from 0.44 to 0.48 over the five-year period. This stability signals consistent capital structure management with a balanced use of debt within the capital composition.

Financial Leverage

Reported financial leverage ratios were elevated, starting at 2.92 in 2018, peaking at 3.32 in 2022, but experienced a dip around 2020-2021 to approximately 3.0. Adjusted financial leverage values tracked the same trend with figures from 1.92 to 2.07. The overall upward trend suggests increased use of debt or other liabilities to finance assets, though adjustments imply a lower effective leverage when accounting for certain factors.

Net Profit Margin

Both reported and adjusted net profit margins show a stable yet fluctuating pattern. Margins slightly dipped from 27.01% to 26.13% (reported) and from 27.86% to 28.54% (adjusted) between 2018 and 2020 but improved significantly in 2021 to 30.19% (reported) and 33.05% (adjusted), followed by a moderate decline in 2022, maintaining levels above the 2018 base. This indicates strong profitability with some variations likely linked to operational or market factors.

Return on Equity (ROE)

The reported ROE fluctuated markedly, decreasing from 26.34% in 2018 to a low of 21.11% in 2020, then recovering to 33.02% in 2022, reflecting improving shareholder returns in recent years. Adjusted ROE followed a similar pattern but remained considerably lower, ranging from 14.87% to 21.3%, which may reflect the impact of adjustments on measuring sustainable earnings quality.

Return on Assets (ROA)

Reported ROA mirrored trends seen in profitability with a decrease from 9.01% in 2018 to 6.95% in 2020, then a rebound to 9.94% in 2022. Adjusted ROA was comparably stable but slightly higher, ranging from 7.58% to 10.27%. These figures indicate that asset efficiency in generating net income improved after a mid-period contraction.

Revenue Trends

Revenue displayed a declining trend from 2018 to 2020, decreasing from $12,250 million to $10,583 million. This downward trend reversed in 2021 and continued into 2022, with revenue increasing to $12,522 million and then further to $14,853 million, indicating a strong recovery and growth in recent years.

Total Assets Evolution

Total assets showed consistent growth over the entire period. Starting from $36,729 million at the end of 2018, assets rose steadily each year, reaching $41,912 million by the end of 2022. This steady increase reflects ongoing investment or asset accumulation.

Reported Total Asset Turnover

The reported total asset turnover ratio decreased from 0.33 in 2018 to a low of 0.27 in 2020, illustrating reduced efficiency in utilizing assets to generate revenue during that period. Afterwards, the ratio improved to 0.31 in 2021 and further to 0.35 in 2022, surpassing the initial 2018 level, suggesting enhanced asset utilization alongside rising revenue.

Adjusted Total Assets and Turnover

The adjusted total assets and related turnover figures closely mirror the reported totals, with adjusted total assets increasing from $37,058 million in 2018 to $41,945 million in 2022. The adjusted turnover ratio follows the same pattern as reported turnover, declining to 0.27 in 2020 and rising to 0.35 by 2022, reinforcing the insights regarding asset efficiency and revenue growth.

Overall Observations

The financial data reveal that while the company faced a period of declining revenue and asset turnover efficiency until 2020, it successfully reversed these trends with marked improvements in both revenue and the efficiency with which assets generate revenue by 2022. Asset base growth was steady, indicating ongoing investments or asset accumulation, supporting the increasing operational scale. The synchronization between revenue growth and improved asset turnover in recent years suggests enhanced operational management or market conditions favoring the company's business.

The financial data over the five-year period reveals several notable trends in liquidity and working capital management.

Current Assets

Current assets exhibit an increasing trend from 2018 through 2020, rising from $2,565 million to $4,441 million. This was followed by a decline in 2021 to $3,873 million and stabilization in 2022 at $3,849 million, indicating a contraction after a peak in 2020.

Current Liabilities

Current liabilities have shown a consistent upward trend across all years, increasing from $1,915 million in 2018 to $2,471 million in 2022. This steady increase suggests growing short-term obligations.

Reported Current Ratio

The reported current ratio improved from 1.34 in 2018 to a peak of 2.20 in 2020, reflecting strengthened liquidity. However, from 2020 onwards, the ratio decreased to 1.73 in 2021 and further to 1.56 in 2022, though still remaining above the initial 2018 level.

Adjusted Current Assets

Adjusted current assets follow a similar pattern as current assets, rising from $2,591 million in 2018 to $4,469 million in 2020, then decreasing to $3,901 million in 2021 and marginally declining to $3,882 million in 2022. This adjustment maintains consistency with the general asset trend.

Adjusted Current Ratio

The adjusted current ratio mirrors the behavior of the reported current ratio, increasing from 1.35 in 2018 to 2.21 in 2020 and declining thereafter to 1.75 in 2021 and 1.57 in 2022, indicating that the adjustment has minimal effect on observed liquidity trends.

Overall, the data suggest that liquidity peaked in 2020, supported by a strong increase in current assets, while liabilities grew steadily throughout the period. Since 2020, there has been a reduction in current assets coupled with continued growth in current liabilities, leading to a gradual decline in liquidity ratios. Despite this decline, the company maintains a current ratio above 1.5, indicating a generally healthy short-term financial position.

Over the observed period from 2018 to 2022, several noteworthy trends can be identified in the company's financial leverage and capital structure metrics.

Total Debt

Total debt exhibited a general upward trajectory, rising from $14,757 million in 2018 to $18,047 million in 2022. This represents an increase of approximately 22% over the five-year span, with the peak value appearing in the final year of the data.

Shareholders' Equity (Attributable to CSX)

Shareholders’ equity showed some volatility within the period. Starting at $12,563 million in 2018, it decreased to $11,848 million in 2019, then recovered and peaked at $13,490 million in 2021 before declining again to $12,615 million in 2022. This fluctuation suggests varying profitability or changes in retained earnings and other equity components year over year.

Reported Debt to Equity Ratio

The reported debt to equity ratio increased from 1.17 in 2018 to 1.43 in 2022, indicating a gradual rise in financial leverage. A spike was evident in 2019 where the ratio climbed notably to 1.37, followed by a slight decrease in 2020 and 2021, before culminating in the highest ratio in 2022. This suggests the company has become more reliant on debt relative to its reported equity over time.

Adjusted Total Debt

Adjusted total debt also followed an ascending pattern similar to total debt, increasing from $15,060 million in 2018 to $18,604 million in 2022. This measure consistently exceeded the reported debt figures, reflecting the inclusion of additional liabilities or adjustments to raw debt values.

Adjusted Total Shareholders' Equity

Adjusted total shareholders’ equity presented an overall increasing trend from $19,296 million in 2018 to $20,227 million in 2022, with a slight dip in 2019. The adjusted equity figures are considerably higher than the reported equity, likely due to comprehensive adjustments including reserves or unrealized gains, indicating a stronger capital base when adjusted values are considered.

Adjusted Debt to Equity Ratio

This ratio mirrored the adjusted debt and equity trends, starting at 0.78 in 2018 and rising to 0.92 in 2022. Despite the increase, this ratio remained below 1.0 throughout the period, indicating a relatively lower leverage position when adjusted figures are analyzed compared to the reported ratio. The slight increase suggests a modest rise in leverage but within a more conservative range than indicated by reported figures.

In summary, the company’s leverage has generally increased over the five years, as indicated by both reported and adjusted debt to equity ratios. While total and adjusted debt levels have steadily risen, shareholders’ equity has demonstrated some fluctuation, with adjusted equity showing a more stable and upward trend. The differences between reported and adjusted figures imply that the adjusted data provides a broader and potentially more favorable view of the company’s financial strength and leverage management over time.

The financial data reveals several notable trends regarding the company's debt and capital structure over the five-year period from 2018 to 2022.

Total Debt

The total debt shows a general upward trend, increasing from $14,757 million in 2018 to $18,047 million in 2022. There was a steady rise each year, except for a slight decrease in 2021 compared to 2020.

Total Capital

Total capital also exhibited growth over the period, rising from $27,320 million in 2018 to $30,662 million in 2022. The increase was gradual, with a more pronounced rise between 2019 and 2020, and relatively stable thereafter.

Reported Debt to Capital Ratio

The reported debt to capital ratio fluctuated modestly, starting at 0.54 in 2018, peaking at 0.58 in 2019, and then oscillating slightly before reaching 0.59 in 2022. This suggests the company maintained a relatively stable leverage level, with a slight increase in debt proportion relative to total capital by 2022.

Adjusted Total Debt

Adjusted total debt increased steadily over the years, growing from $15,060 million in 2018 to $18,604 million in 2022. The pattern mirrors that of total debt but at slightly higher absolute values, indicating adjustments led to recognizing additional debt elements.

Adjusted Total Capital

Adjusted total capital also consistently increased, moving from $34,356 million in 2018 to $38,831 million in 2022. This consistent growth suggests an expanding capital base when adjustments are considered.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio shows a slight upward trend, from 0.44 in 2018 to 0.48 in 2022, with minor fluctuations in intermediate years. This indicates a cautious rise in leverage when accounting for adjustments, but overall, the company has sustained a moderate capital structure.

In summary, the company's debt and capital levels have grown steadily over the examined period, with leverage ratios indicating a relatively stable but gradually increasing reliance on debt financing. Both reported and adjusted metrics reflect consistent expansion of total capital, suggesting efforts to balance growth with financial stability.

Total Assets

Total assets have shown a steady upward trend over the five-year period, increasing from US$36,729 million at the end of 2018 to US$41,912 million by the end of 2022. This reflects consistent growth in the company's asset base.

Shareholders’ Equity (Attributable to CSX)

Reported shareholders’ equity exhibited fluctuations, beginning at US$12,563 million in 2018, declining to US$11,848 million in 2019, then recovering to a peak of US$13,490 million in 2021, before decreasing again to US$12,615 million in 2022. This inconsistency suggests variability in retained earnings or other equity components during the period.

Reported Financial Leverage

The reported financial leverage ratio increased from 2.92 in 2018 to a high of 3.23 in 2019, then declined to 3.00 by 2021, before rising again to 3.32 in 2022. The movement indicates varying reliance on debt versus equity financing, with a tendency towards higher leverage in the most recent year.

Adjusted Total Assets

This metric closely mirrors total assets, showing a consistent increase from US$37,058 million in 2018 to US$41,945 million in 2022, confirming the growth trend with minor adjustments considered.

Adjusted Total Shareholders’ Equity

Adjusted shareholders’ equity started at US$19,296 million in 2018 and showed a general upward trajectory to US$20,911 million in 2021, followed by a slight decrease to US$20,227 million in 2022. Compared to reported equity, adjusted equity values are significantly higher, suggesting adjustments that increase equity valuation.

Adjusted Financial Leverage

The adjusted financial leverage ratio remained relatively stable, fluctuating between 1.92 and 2.07 over the period. Although a slight increase to 2.07 is noted in 2022, the ratio indicates a moderate and controlled level of financial leverage when adjustments are taken into account.

The financial data reveals several notable trends over the five-year period ending December 31, 2022. The net earnings demonstrate some fluctuations, starting at 3,309 million US dollars in 2018, peaking slightly in 2019 at 3,331 million, then experiencing a notable decline to 2,765 million in 2020 before rebounding to 3,781 million in 2021 and further increasing to 4,166 million in 2022. This indicates resilience and recovery in profitability following a dip in 2020.

Revenue experienced a decline from 12,250 million US dollars in 2018 to 10,583 million in 2020, reflecting a contracting sales environment during this period. However, revenue then increased significantly to 12,522 million in 2021 and continued to rise sharply to 14,853 million in 2022, suggesting a strong market rebound and growth momentum in the latter years.

Reported net profit margin shows a generally positive trend with some variability. It started at a solid 27.01% in 2018, increased to 27.9% in 2019, then declined to 26.13% in 2020. The margin improved considerably to 30.19% in 2021 before declining slightly to 28.05% in 2022. This pattern mirrors the fluctuations in earnings and revenue, with the highest profitability margin achieved during the recovery phase.

Adjusted net earnings, which exclude certain items for a clearer view of operational performance, follow a similar trajectory to net earnings but consistently show higher values, indicating non-recurring adjustments that impacted reported figures negatively. Adjusted net earnings fell from 3,594 million in 2019 to 3,020 million in 2020, then rebounded strongly to 4,138 million in 2021, and grew further to 4,308 million in 2022.

The adjusted net profit margin is consistently higher than the reported net profit margin, starting at 27.86% in 2018 and peaking at 33.05% in 2021. The margin dipped to 28.54% during 2020 but rebounded noticeably thereafter, suggesting improved core business efficiency post-2020. The slight decrease to 29% in 2022 still reflects robust operational profitability.

Summary of Financial Trends

The company experienced a dip in performance in 2020 across key financial metrics, likely influenced by external challenges. However, subsequent years demonstrate strong recovery and growth in both revenues and earnings. Profitability margins improved substantially after 2020, indicating strengthened operational performance.

The adjusted profit margins and earnings point to favorable underlying business trends that outpace reported figures, reflecting the impact of adjustments related to non-operational factors. Overall, the financial results suggest enhanced efficiency and profitability in recent periods coupled with sustained revenue growth.

The financial data reveals several notable trends over the five-year period ending December 31, 2022. Both net earnings and adjusted net earnings display an overall upward trajectory, despite a temporary decline in 2020. Net earnings decreased from 3331 million US dollars in 2019 to 2765 million in 2020, before rebounding strongly to reach 4166 million by 2022. Similarly, adjusted net earnings declined in 2020 but recovered to its highest value of 4308 million by 2022, indicating improved profitability post-2020.

Shareholders’ equity attributable to the company exhibits fluctuations, initially decreasing from 12563 million in 2018 to 11848 million in 2019, then increasing to a peak of 13490 million in 2021, before slightly declining again to 12615 million in 2022. The adjusted total shareholders’ equity follows a similar pattern but remains consistently higher in absolute terms, reflecting possible adjustments for more comprehensive capitalization or valuation methods. It decreased in 2019 relative to 2018 but then increased steadily through 2021, reaching 20911 million, before a modest decline in 2022 to 20227 million.

Return on equity (ROE) figures demonstrate variability in performance efficiency. The reported ROE dropped in 2020 to 21.11% from previous higher levels but improved thereafter, reaching the highest point of 33.02% in 2022. This indicates enhanced profitability relative to shareholders’ equity in the final year. The adjusted ROE also follows this trend with a decline in 2020 to 14.87% and a subsequent recovery to 21.3% in 2022, implying that when adjustments are taken into account, the profitability remained robust, albeit on a lower scale compared to reported figures.

Profitability

The decline in earnings and ROE in 2020 indicates a challenging period, likely due to external or operational factors. The strong recovery in both net earnings and ROE in subsequent years suggests effective management response and operational resilience.

Adjusted earnings and equity measurements provide a more conservative but consistent view of profitability trends, highlighting sustained improvement post-2020.

Equity Trends

The fluctuations in shareholders’ equity and its adjusted counterpart highlight variability in capital structure or valuation adjustments. The general increase from 2019 to 2021 suggests significant accumulation of equity, while the slight decreases in 2022 may reflect capital returns, asset revaluations, or other balance sheet activities.

Return on Equity

The divergence between reported and adjusted ROE values suggests that different accounting treatments or adjustments materially affect the perceived efficiency of equity utilization. The higher reported ROE emphasizes strong earnings relative to book equity, whereas adjusted ROE captures a more conservative profitability perspective.

Overall, the data indicates a recovery and strengthening in financial performance after a dip in 2020, with increasing earnings and improving ROE metrics. Equity levels remain robust, although with some fluctuations, and adjusted measures provide additional context supporting the general positive trend in profitability and capital efficiency by 2022.

The financial data reveals several noteworthy trends from 2018 to 2022. Net earnings initially experienced a slight increase from 2018 to 2019, followed by a decline in 2020. Subsequently, a strong recovery and growth occurred in 2021 and 2022, with net earnings reaching the highest value in the five-year period by the end of 2022.

Total assets showed a gradual and consistent increase each year, indicating ongoing growth in the company's asset base. This steady rise in assets suggests stable investment or accumulation of resources over time.

The reported return on assets (ROA) mirrored the trend observed in net earnings. It decreased in 2020, corresponding with the dip in net earnings, but improved significantly in the following two years. By 2022, the reported ROA achieved its highest level within the period, reflecting enhanced operational efficiency or profitability relative to the asset base.

When considering adjusted financial figures, adjusted net earnings and adjusted total assets displayed similar patterns to their unadjusted counterparts. Adjusted net earnings dipped in 2020 but then rose sharply in 2021 and 2022, reaching peak levels by the end of the period. Adjusted total assets also consistently increased, aligning closely with total assets throughout the period.

The adjusted ROA offers additional insight, showing a less pronounced decline in 2020 compared to the reported ROA and a notable rebound in subsequent years. The adjusted ROA in 2021 and 2022 surpasses previous levels, indicating improved underlying profitability after adjustments.

Net Earnings

Increased slightly from 2018 to 2019, dropped notably in 2020, and then grew strongly in 2021 and 2022, reaching the highest value recorded in this timeframe.

Total Assets

Demonstrated steady and continuous growth across all years, reflecting asset accumulation or investment.

Reported ROA

Followed a similar trajectory to net earnings with a decline in 2020 and recovery afterward, peaking in 2022 and indicating improved asset profitability.

Adjusted Net Earnings

Reflected a consistent pattern with net earnings but with relatively higher values in each year, showing a dip in 2020 and strong performance in 2021 and 2022.

Adjusted Total Assets

Closely tracked the trend of total assets, steadily increasing without any year of decline.

Adjusted ROA

Showed resilience with the least decline in 2020 and the most substantial recovery in 2021 and 2022, recording the highest levels in the period analyzed.

Overall, the data highlights the company's ability to recover from a downturn in 2020, demonstrating growth in earnings and asset profitability in the following years. The increasing asset base combined with improved ROA metrics reflects enhanced efficiency and profitability trends.