Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
CSX Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The financial data exhibits several discernible trends in the company’s leverage and coverage ratios over the analyzed periods. These trends offer insights into the company's capital structure, risk exposure, and its capacity to service debt.
- Debt to Equity Ratios
-
Both debt to equity and debt to equity including operating lease liability ratios showed a gradual increase from early 2019 through late 2019, peaking in the third quarter of 2019. Following this, the ratios slightly decreased through most of 2020 and the first part of 2021, indicating a modest reduction in reliance on debt relative to equity. However, starting from mid-2021 to the first quarter of 2023, there is a reversing trend with the ratios climbing again, reaching their highest levels in the earliest quarter of 2023. This indicates a growing leverage position over this latter period.
- Debt to Capital Ratios
-
The debt to capital ratio remained relatively stable across the periods, fluctuating narrowly around 0.55 to 0.59, with a slight increase observed in late 2022 and early 2023. When including operating lease liabilities, the ratio mirrors the same stability but trends slightly higher in recent quarters, especially toward the end of 2022 and into 2023, suggesting a modest increase in debt proportion relative to total capital employed.
- Debt to Assets Ratios
-
Debt to assets, whether conventional or inclusive of operating lease liabilities, reflects steady behavior over time, generally oscillating around 0.40 to 0.44. The ratios show minimal variation during the period but depict a marginal uptick towards the final quarters of the timeline, coinciding with the increase in debt to equity and debt to capital ratios, which may imply a slight rise in financial gearing relative to asset base.
- Financial Leverage
-
Financial leverage trends demonstrate a moderate upward movement from early 2019, peaking in the third quarter of 2019, followed by a gradual decline through 2021. Starting late 2021 and continuing through to early 2023, the financial leverage ratio increases once more, reaching its highest levels recorded in the dataset. This suggests increased use of debt financing relative to shareholders’ equity during the most recent periods.
- Interest Coverage Ratio
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The interest coverage ratio generally decreased from early 2019 to late 2020, indicating declining ability to cover interest expenses with operating earnings during that period. However, from late 2020 onwards, the ratio shows a steady and marked improvement, reaching peak levels between mid-2021 and early 2023. The upward trend in interest coverage suggests enhanced earnings capacity or reduced interest expenses, reflecting improved financial health in terms of debt servicing ability in the latter periods.
In summary, the company’s leverage ratios reveal phases of increased debt use interspersed with periods of deleveraging. Notably, the recent trend points to a higher leverage position, accompanied by enhanced interest coverage, indicating that although the company is assuming more debt relative to its equity and capital, it maintains a strong capacity to meet interest obligations. The stability observed in debt to capital and debt to assets ratios suggests a balanced approach to financing assets and managing capital structure, despite the shifts in leverage and coverage metrics over time.
Debt Ratios
Coverage Ratios
Debt to Equity
CSX Corp., debt to equity calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current maturities of long-term debt | 11) | 151) | 155) | 236) | 317) | 181) | 211) | 122) | 41) | 401) | 371) | 378) | 255) | 245) | 745) | 245) | 18) | ||||||
| Long-term debt, excluding current portion | 17,911) | 17,896) | 17,895) | 15,974) | 16,019) | 16,185) | 16,182) | 16,229) | 16,306) | 16,304) | 16,121) | 16,128) | 16,477) | 15,993) | 15,992) | 15,522) | 15,748) | ||||||
| Total debt | 17,922) | 18,047) | 18,050) | 16,210) | 16,336) | 16,366) | 16,393) | 16,351) | 16,347) | 16,705) | 16,492) | 16,506) | 16,732) | 16,238) | 16,737) | 15,767) | 15,766) | ||||||
| Shareholders’ equity, attributable to CSX | 12,326) | 12,615) | 12,874) | 13,131) | 13,184) | 13,490) | 13,163) | 13,426) | 13,151) | 13,101) | 12,713) | 12,150) | 11,871) | 11,848) | 11,864) | 12,276) | 12,428) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 1.45 | 1.43 | 1.40 | 1.23 | 1.24 | 1.21 | 1.25 | 1.22 | 1.24 | 1.28 | 1.30 | 1.36 | 1.41 | 1.37 | 1.41 | 1.28 | 1.27 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.80 | 0.81 | 0.84 | 0.82 | 0.85 | 0.86 | 1.07 | 1.11 | 1.20 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 1.23 | 1.26 | 1.48 | 1.39 | 1.04 | 0.64 | 0.67 | 0.55 | 0.57 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 2.71 | 2.74 | 2.85 | 2.52 | 2.71 | 2.10 | 2.11 | 2.01 | 1.64 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 4.80 | 4.68 | 6.74 | 8.55 | 9.55 | 7.03 | 6.55 | 7.39 | 5.69 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 1.11 | 0.99 | 1.20 | 1.26 | 1.42 | 1.54 | 1.84 | 2.09 | 3.32 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity, attributable to CSX
= 17,922 ÷ 12,326 = 1.45
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's capital structure, specifically regarding debt, equity, and their relative proportions over the observed periods.
- Total Debt
- The total debt remained relatively stable from early 2019 through mid-2022, fluctuating within a narrow range around 15,700 to 16,700 million US dollars. However, starting from the third quarter of 2022, there is a discernible increase in total debt, rising sharply to over 18,000 million US dollars and maintaining that elevated level through early 2023. This indicates a recent leveraging up or increased borrowing activity by the company in that timeframe.
- Shareholders’ Equity
- Shareholders’ equity attributable to the company showed a declining trend across the periods, starting at approximately 12,400 million US dollars in early 2019 and decreasing steadily to about 12,300 million US dollars by the first quarter of 2023. Peaks and troughs are present but the general tendency is a gradual erosion of equity, particularly noticeable from late 2021 onward, suggesting either sustained losses, dividend distributions, or other equity reductions.
- Debt to Equity Ratio
- The debt to equity ratio exhibits moderate variability but shows a clear trend of increase towards the end of the reported periods. Initially fluctuating around a range of 1.21 to 1.41 through most of the quarters, the ratio climbs to approximately 1.45 by early 2023. This rise aligns with the increase in total debt and the decline in equity, reflecting a higher financial leverage and potential increased financial risk.
Overall, the financial data portrays a company that maintained a relatively consistent capital structure until mid-2022, followed by a period characterized by increased borrowing and decreasing equity, resulting in a higher debt to equity ratio. This shift may imply strategic financing decisions such as expanded capital investment or addressing liquidity needs, but also suggests attention should be paid to the growing leverage and its implications for financial stability.
Debt to Equity (including Operating Lease Liability)
CSX Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current maturities of long-term debt | 11) | 151) | 155) | 236) | 317) | 181) | 211) | 122) | 41) | 401) | 371) | 378) | 255) | 245) | 745) | 245) | 18) | ||||||
| Long-term debt, excluding current portion | 17,911) | 17,896) | 17,895) | 15,974) | 16,019) | 16,185) | 16,182) | 16,229) | 16,306) | 16,304) | 16,121) | 16,128) | 16,477) | 15,993) | 15,992) | 15,522) | 15,748) | ||||||
| Total debt | 17,922) | 18,047) | 18,050) | 16,210) | 16,336) | 16,366) | 16,393) | 16,351) | 16,347) | 16,705) | 16,492) | 16,506) | 16,732) | 16,238) | 16,737) | 15,767) | 15,766) | ||||||
| Long-term operating lease liability | 478) | 488) | 487) | 473) | 476) | 478) | 482) | 450) | 453) | 455) | 475) | 481) | 489) | 493) | 494) | 501) | 502) | ||||||
| Total debt (including operating lease liability) | 18,400) | 18,535) | 18,537) | 16,683) | 16,812) | 16,844) | 16,875) | 16,801) | 16,800) | 17,160) | 16,967) | 16,987) | 17,221) | 16,731) | 17,231) | 16,268) | 16,268) | ||||||
| Shareholders’ equity, attributable to CSX | 12,326) | 12,615) | 12,874) | 13,131) | 13,184) | 13,490) | 13,163) | 13,426) | 13,151) | 13,101) | 12,713) | 12,150) | 11,871) | 11,848) | 11,864) | 12,276) | 12,428) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.49 | 1.47 | 1.44 | 1.27 | 1.28 | 1.25 | 1.28 | 1.25 | 1.28 | 1.31 | 1.33 | 1.40 | 1.45 | 1.41 | 1.45 | 1.33 | 1.31 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 1.50 | 1.49 | 1.52 | 1.48 | 1.49 | 1.51 | 1.75 | 1.83 | 1.95 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 1.48 | 1.52 | 1.77 | 1.68 | 1.25 | 0.77 | 0.78 | 0.67 | 0.70 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 2.81 | 2.85 | 2.96 | 2.62 | 2.82 | 2.20 | 2.20 | 2.10 | 1.71 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 5.58 | 5.41 | 7.84 | 9.94 | 11.12 | 8.17 | 7.60 | 8.52 | 6.77 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 1.32 | 1.19 | 1.41 | 1.48 | 1.65 | 1.79 | 2.13 | 2.42 | 3.75 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity, attributable to CSX
= 18,400 ÷ 12,326 = 1.49
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's capital structure and leverage ratios over the observed periods.
- Total Debt (including operating lease liability)
- The total debt level has shown moderate fluctuations throughout the timeframe. Starting from approximately $16.3 billion at the end of Q1 2019, the debt increased slightly reaching a peak of around $17.2 billion in Q3 2019 and Q1 2020. Subsequently, the debt amount remained relatively stable near $17 billion through 2020 and 2021, before experiencing a noticeable increase in late 2022 and early 2023, peaking close to $18.5 billion in Q3 2022 and maintaining that level through Q1 2023. This pattern suggests a relatively consistent debt management strategy with a recent rise in leverage or financing needs.
- Shareholders’ Equity, attributable to CSX
- Shareholders' equity shows a gradual declining trend over the period under review. Beginning at around $12.4 billion in Q1 2019, equity decreased consistently, reaching about $11.8 billion by the end of 2019. It recovered somewhat during 2020 and 2021, peaking near $13.5 billion in Q4 2021. However, from Q1 2022 onwards, equity declined steadily again, falling to approximately $12.3 billion by Q1 2023. The fluctuations may reflect earnings volatility, dividend payments, share repurchases, or other equity-affecting activities.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio demonstrates sensitivity to changes in both debt levels and equity. Initially, the ratio was around 1.31 in Q1 2019, increasing to a peak of 1.45 in Q3 2019 and Q1 2020, coinciding with the increase in debt and decrease in equity. The ratio then declined gradually to about 1.25 by late 2021, reflecting stabilizing debt levels coupled with higher equity. However, starting in 2022, the ratio rose again, reaching approximately 1.49 by Q1 2023. This increase corresponds with the recent spike in debt and decline in shareholders’ equity, indicating a higher leverage position which may imply elevated financial risk or increased capital expenditures financed through debt.
Overall, the financial data depicts a generally stable but somewhat increasing reliance on debt financing relative to equity as of early 2023. Despite temporary improvements in shareholders’ equity, the latest trends point to a more leveraged capital structure, warranting attention to potential impacts on financial flexibility and risk profile going forward.
Debt to Capital
CSX Corp., debt to capital calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current maturities of long-term debt | 11) | 151) | 155) | 236) | 317) | 181) | 211) | 122) | 41) | 401) | 371) | 378) | 255) | 245) | 745) | 245) | 18) | ||||||
| Long-term debt, excluding current portion | 17,911) | 17,896) | 17,895) | 15,974) | 16,019) | 16,185) | 16,182) | 16,229) | 16,306) | 16,304) | 16,121) | 16,128) | 16,477) | 15,993) | 15,992) | 15,522) | 15,748) | ||||||
| Total debt | 17,922) | 18,047) | 18,050) | 16,210) | 16,336) | 16,366) | 16,393) | 16,351) | 16,347) | 16,705) | 16,492) | 16,506) | 16,732) | 16,238) | 16,737) | 15,767) | 15,766) | ||||||
| Shareholders’ equity, attributable to CSX | 12,326) | 12,615) | 12,874) | 13,131) | 13,184) | 13,490) | 13,163) | 13,426) | 13,151) | 13,101) | 12,713) | 12,150) | 11,871) | 11,848) | 11,864) | 12,276) | 12,428) | ||||||
| Total capital | 30,248) | 30,662) | 30,924) | 29,341) | 29,520) | 29,856) | 29,556) | 29,777) | 29,498) | 29,806) | 29,205) | 28,656) | 28,603) | 28,086) | 28,601) | 28,043) | 28,194) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.59 | 0.59 | 0.58 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.56 | 0.56 | 0.58 | 0.58 | 0.58 | 0.59 | 0.56 | 0.56 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.44 | 0.45 | 0.46 | 0.45 | 0.46 | 0.46 | 0.52 | 0.53 | 0.54 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 0.55 | 0.56 | 0.60 | 0.58 | 0.51 | 0.39 | 0.40 | 0.35 | 0.36 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.73 | 0.73 | 0.74 | 0.72 | 0.73 | 0.68 | 0.68 | 0.67 | 0.62 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.83 | 0.82 | 0.87 | 0.90 | 0.91 | 0.88 | 0.87 | 0.88 | 0.85 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 0.53 | 0.50 | 0.55 | 0.56 | 0.59 | 0.61 | 0.65 | 0.68 | 0.77 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 17,922 ÷ 30,248 = 0.59
2 Click competitor name to see calculations.
The analysis of the debt and capital structure over the examined periods reveals several notable trends. Total debt exhibits a generally stable pattern with some fluctuations over the quarters. Starting around 15.8 billion US dollars in early 2019, it reached a peak of approximately 18.05 billion US dollars by late 2022, then slightly decreased to about 17.9 billion US dollars in the first quarter of 2023.
Total capital follows a similar trajectory, moving from approximately 28.2 billion US dollars in early 2019 to a peak near 30.9 billion by late 2022, and then experiencing a minor decline toward 30.2 billion US dollars by the first quarter of 2023. The capital base thus shows incremental growth over the period, with some mild contraction toward the end.
The debt-to-capital ratio remains relatively consistent throughout the period, oscillating between 0.55 and 0.59. This ratio indicates that debt constitutes slightly more than half of the capital structure, signifying a moderate leverage position. After a gradual decrease from 0.56 to around 0.55 in mid-2021, the ratio experienced an upward movement to reach approximately 0.59 by early 2023. This suggests a cautious increase in leverage over the most recent quarters examined.
Overall, the company's capital structure reflects stability with moderate leverage and slight growth in both debt and total capital. The recent uptick in the debt-to-capital ratio could indicate a strategic shift towards increased debt financing or changes in capital components. Continuous monitoring will be important to assess the sustainability of this leverage level.
Debt to Capital (including Operating Lease Liability)
CSX Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current maturities of long-term debt | 11) | 151) | 155) | 236) | 317) | 181) | 211) | 122) | 41) | 401) | 371) | 378) | 255) | 245) | 745) | 245) | 18) | ||||||
| Long-term debt, excluding current portion | 17,911) | 17,896) | 17,895) | 15,974) | 16,019) | 16,185) | 16,182) | 16,229) | 16,306) | 16,304) | 16,121) | 16,128) | 16,477) | 15,993) | 15,992) | 15,522) | 15,748) | ||||||
| Total debt | 17,922) | 18,047) | 18,050) | 16,210) | 16,336) | 16,366) | 16,393) | 16,351) | 16,347) | 16,705) | 16,492) | 16,506) | 16,732) | 16,238) | 16,737) | 15,767) | 15,766) | ||||||
| Long-term operating lease liability | 478) | 488) | 487) | 473) | 476) | 478) | 482) | 450) | 453) | 455) | 475) | 481) | 489) | 493) | 494) | 501) | 502) | ||||||
| Total debt (including operating lease liability) | 18,400) | 18,535) | 18,537) | 16,683) | 16,812) | 16,844) | 16,875) | 16,801) | 16,800) | 17,160) | 16,967) | 16,987) | 17,221) | 16,731) | 17,231) | 16,268) | 16,268) | ||||||
| Shareholders’ equity, attributable to CSX | 12,326) | 12,615) | 12,874) | 13,131) | 13,184) | 13,490) | 13,163) | 13,426) | 13,151) | 13,101) | 12,713) | 12,150) | 11,871) | 11,848) | 11,864) | 12,276) | 12,428) | ||||||
| Total capital (including operating lease liability) | 30,726) | 31,150) | 31,411) | 29,814) | 29,996) | 30,334) | 30,038) | 30,227) | 29,951) | 30,261) | 29,680) | 29,137) | 29,092) | 28,579) | 29,095) | 28,544) | 28,696) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.60 | 0.60 | 0.59 | 0.56 | 0.56 | 0.56 | 0.56 | 0.56 | 0.56 | 0.57 | 0.57 | 0.58 | 0.59 | 0.59 | 0.59 | 0.57 | 0.57 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.64 | 0.65 | 0.66 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 0.60 | 0.60 | 0.64 | 0.63 | 0.56 | 0.43 | 0.44 | 0.40 | 0.41 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.74 | 0.74 | 0.75 | 0.72 | 0.74 | 0.69 | 0.69 | 0.68 | 0.63 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.85 | 0.84 | 0.89 | 0.91 | 0.92 | 0.89 | 0.88 | 0.89 | 0.87 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 0.57 | 0.54 | 0.58 | 0.60 | 0.62 | 0.64 | 0.68 | 0.71 | 0.79 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 18,400 ÷ 30,726 = 0.60
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's debt and capital structure over the reported quarters, reflecting its leverage dynamics and capital management strategies.
- Total Debt (Including Operating Lease Liability)
- The total debt levels remained relatively stable from early 2019 through mid-2022, fluctuating around the range of approximately $16.2 billion to $17.2 billion. A slight increase was observed toward the end of 2022, peaking near $18.5 billion. This elevated debt level was largely maintained into early 2023, indicating a moderate increase in leverage or debt financing during this period.
- Total Capital (Including Operating Lease Liability)
- Total capital displayed a gradual upward trend from roughly $28.5 billion in early 2019 to about $31.4 billion by late 2022. Despite some quarter-to-quarter variations, the overall capital base expanded, suggesting ongoing investments or retained earnings contributing to growth in the capital structure. Early 2023 data shows a slight decline to approximately $30.7 billion, indicating potential capital reductions or adjustments.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio exhibited a subtle but important pattern. Starting at 0.57 in early 2019, it climbed slightly to 0.59 by late 2019 and early 2020, then decreased gradually to around 0.56 throughout late 2020 to mid-2022, reflecting improved capital structure with relatively less reliance on debt. However, this ratio increased again toward the end of 2022 and into early 2023, reaching 0.60, indicative of a higher proportion of debt in the capital structure.
Overall, the data indicates conservative debt management for the majority of the observed period, with a controlled leverage ratio below 0.60. The recent uptick in total debt and the debt to capital ratio near 0.60 suggests a shift toward increased leverage, possibly to finance expansion, acquisitions, or other strategic initiatives. Concurrently, the total capital growth supports the notion of strengthened capitalization, though the slight downturn in early 2023 signals a need for continued monitoring of capital adequacy and leverage balance.
Debt to Assets
CSX Corp., debt to assets calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current maturities of long-term debt | 11) | 151) | 155) | 236) | 317) | 181) | 211) | 122) | 41) | 401) | 371) | 378) | 255) | 245) | 745) | 245) | 18) | ||||||
| Long-term debt, excluding current portion | 17,911) | 17,896) | 17,895) | 15,974) | 16,019) | 16,185) | 16,182) | 16,229) | 16,306) | 16,304) | 16,121) | 16,128) | 16,477) | 15,993) | 15,992) | 15,522) | 15,748) | ||||||
| Total debt | 17,922) | 18,047) | 18,050) | 16,210) | 16,336) | 16,366) | 16,393) | 16,351) | 16,347) | 16,705) | 16,492) | 16,506) | 16,732) | 16,238) | 16,737) | 15,767) | 15,766) | ||||||
| Total assets | 41,478) | 41,912) | 42,242) | 40,366) | 40,452) | 40,531) | 40,129) | 40,015) | 39,692) | 39,793) | 39,443) | 38,904) | 38,834) | 38,257) | 38,795) | 37,924) | 38,154) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.43 | 0.43 | 0.43 | 0.40 | 0.40 | 0.40 | 0.41 | 0.41 | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.42 | 0.41 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | 0.25 | 0.28 | 0.29 | 0.30 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | 0.24 | 0.25 | 0.22 | 0.23 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | 0.47 | 0.47 | 0.46 | 0.43 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.45 | 0.48 | 0.48 | 0.48 | 0.50 | 0.52 | 0.51 | 0.51 | 0.48 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 0.31 | 0.28 | 0.29 | 0.29 | 0.31 | 0.32 | 0.34 | 0.35 | 0.37 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 17,922 ÷ 41,478 = 0.43
2 Click competitor name to see calculations.
The analysis of the financial data over the specified periods reveals certain trends in the company's leverage and asset base. Total debt shows a general upward trajectory with fluctuations, increasing from approximately $15.8 billion in early 2019 to about $18.0 billion by the first quarter of 2023. This increase is particularly notable starting in late 2021 through 2022, where debt levels rose from approximately $16.3 billion to $18.0 billion.
Total assets experienced a steady increase overall, growing from roughly $38.2 billion at the beginning of 2019 to around $41.5 billion by the first quarter of 2023. Although there were minor fluctuations across quarters, the asset base maintained an upward momentum, with a slight acceleration in growth observed towards the end of the period, particularly in 2022.
The debt to assets ratio remained relatively stable throughout the observed periods, fluctuating slightly around 0.41 to 0.43. It started near 0.41 in early 2019, peaked slightly above 0.43 during 2020, and settled around 0.43 by early 2023. This indicates that despite the increase in both debt and assets, the company's leverage, measured as the proportion of debt relative to assets, has been largely consistent, reflecting balanced growth in both liabilities and asset base.
- Total Debt
- Demonstrates gradual increase over time with a marked rise from late 2021 to early 2023.
- Total Assets
- Displays steady upward trend, indicating growth in the company's asset base, with greater increases in recent periods.
- Debt to Assets Ratio
- Remains stable around 0.41 to 0.43 across the quarters, suggestive of maintained leverage levels despite absolute increases in debt and assets.
Debt to Assets (including Operating Lease Liability)
CSX Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current maturities of long-term debt | 11) | 151) | 155) | 236) | 317) | 181) | 211) | 122) | 41) | 401) | 371) | 378) | 255) | 245) | 745) | 245) | 18) | ||||||
| Long-term debt, excluding current portion | 17,911) | 17,896) | 17,895) | 15,974) | 16,019) | 16,185) | 16,182) | 16,229) | 16,306) | 16,304) | 16,121) | 16,128) | 16,477) | 15,993) | 15,992) | 15,522) | 15,748) | ||||||
| Total debt | 17,922) | 18,047) | 18,050) | 16,210) | 16,336) | 16,366) | 16,393) | 16,351) | 16,347) | 16,705) | 16,492) | 16,506) | 16,732) | 16,238) | 16,737) | 15,767) | 15,766) | ||||||
| Long-term operating lease liability | 478) | 488) | 487) | 473) | 476) | 478) | 482) | 450) | 453) | 455) | 475) | 481) | 489) | 493) | 494) | 501) | 502) | ||||||
| Total debt (including operating lease liability) | 18,400) | 18,535) | 18,537) | 16,683) | 16,812) | 16,844) | 16,875) | 16,801) | 16,800) | 17,160) | 16,967) | 16,987) | 17,221) | 16,731) | 17,231) | 16,268) | 16,268) | ||||||
| Total assets | 41,478) | 41,912) | 42,242) | 40,366) | 40,452) | 40,531) | 40,129) | 40,015) | 39,692) | 39,793) | 39,443) | 38,904) | 38,834) | 38,257) | 38,795) | 37,924) | 38,154) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.44 | 0.44 | 0.44 | 0.41 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 | 0.43 | 0.43 | 0.44 | 0.44 | 0.44 | 0.44 | 0.43 | 0.43 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | 0.44 | 0.47 | 0.47 | 0.49 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 0.34 | 0.35 | 0.36 | 0.36 | 0.34 | 0.29 | 0.30 | 0.26 | 0.27 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.53 | 0.53 | 0.53 | 0.52 | 0.52 | 0.49 | 0.49 | 0.48 | 0.45 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.53 | 0.55 | 0.56 | 0.56 | 0.58 | 0.60 | 0.60 | 0.59 | 0.57 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 0.37 | 0.33 | 0.34 | 0.34 | 0.36 | 0.37 | 0.39 | 0.40 | 0.42 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 18,400 ÷ 41,478 = 0.44
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's leverage and asset base over the observed periods.
- Total Debt (Including Operating Lease Liability)
- The total debt remained relatively stable around the range of approximately $16.2 billion to $17.2 billion from the beginning of 2019 through early 2022. Starting from mid-2022, the debt level increased noticeably, reaching about $18.5 billion by the end of 2022 and slightly declining to $18.4 billion by the first quarter of 2023. This indicates a moderate rise in leverage in the latter periods.
- Total Assets
- Total assets showed a gradual upward trend with slight fluctuations. Beginning at approximately $38.2 billion in the first quarter of 2019, assets increased steadily to a peak of around $42.2 billion at the end of 2022 before a small decrease to about $41.5 billion in the first quarter of 2023. The overall growth in assets over the observed period suggests ongoing investment and expansion in asset holdings.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio ranged between 0.41 and 0.44 throughout the period. Initially maintaining a ratio near 0.43 to 0.44 with slight decreases in 2021 and early 2022 reaching as low as 0.41, the ratio then rose again toward the end of 2022, stabilizing back at about 0.44 by the first quarter of 2023. This movement mirrors the increase in debt relative to assets observed in the same periods.
Overall, the data indicates that while total assets have steadily increased over the years, total debt levels experienced a significant rise beginning in mid-2022. This resulted in a rebound in the debt to assets ratio, reflecting a higher leverage position compared to previous quarters. The company appears to have taken on additional debt in recent periods, potentially to finance new investments or operations. Despite the fluctuations, the leverage ratio remains fairly consistent over the long term, suggesting a controlled approach to debt management relative to asset growth.
Financial Leverage
CSX Corp., financial leverage calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 41,478) | 41,912) | 42,242) | 40,366) | 40,452) | 40,531) | 40,129) | 40,015) | 39,692) | 39,793) | 39,443) | 38,904) | 38,834) | 38,257) | 38,795) | 37,924) | 38,154) | ||||||
| Shareholders’ equity, attributable to CSX | 12,326) | 12,615) | 12,874) | 13,131) | 13,184) | 13,490) | 13,163) | 13,426) | 13,151) | 13,101) | 12,713) | 12,150) | 11,871) | 11,848) | 11,864) | 12,276) | 12,428) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 3.37 | 3.32 | 3.28 | 3.07 | 3.07 | 3.00 | 3.05 | 2.98 | 3.02 | 3.04 | 3.10 | 3.20 | 3.27 | 3.23 | 3.27 | 3.09 | 3.07 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | 3.43 | 3.77 | 3.86 | 3.99 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 4.32 | 4.37 | 4.98 | 4.66 | 3.68 | 2.68 | 2.65 | 2.56 | 2.55 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 5.30 | 5.38 | 5.56 | 5.07 | 5.38 | 4.49 | 4.48 | 4.34 | 3.80 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 10.56 | 9.77 | 14.08 | 17.76 | 19.05 | 13.56 | 12.76 | 14.49 | 11.84 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 3.60 | 3.59 | 4.10 | 4.30 | 4.55 | 4.87 | 5.46 | 6.00 | 8.86 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity, attributable to CSX
= 41,478 ÷ 12,326 = 3.37
2 Click competitor name to see calculations.
- Total Assets
-
Total assets showed moderate fluctuations over the analyzed period. Beginning at approximately $38.15 billion, assets experienced a general upward trend, peaking around $42.24 billion in the third quarter of 2022. Following this peak, there was a slight decrease, with total assets reducing to about $41.48 billion by the first quarter of 2023. Overall, this indicates steady asset growth with some recent stabilization or minor contraction.
- Shareholders’ Equity
-
Shareholders’ equity attributable to the company demonstrated a generally declining trend. Starting near $12.43 billion in the first quarter of 2019, it slightly fluctuated with periodic increases and decreases but showed a gradual downturn over the period. By the first quarter of 2023, equity had decreased to approximately $12.33 billion. This diminishing equity level suggests potential pressures on retained earnings or other equity components despite some intervals of stability or minor recovery.
- Financial Leverage
-
The financial leverage ratio exhibited notable variation but trended upwards overall. The ratio began around 3.07 and showed small oscillations with a gradual decline to about 2.98 in mid-2021, implying a temporary reduction in leverage. However, from late 2021 onwards, the leverage ratio increased, reaching approximately 3.37 by the first quarter of 2023. This rising leverage indicates an increasing reliance on debt financing relative to equity, consistent with the observed decrease in equity and the stability or growth in total assets.
- Summary of Trends and Insights
-
The period analyzed reveals a company with overall asset growth coupled with weakening shareholders’ equity. This divergence has resulted in an increased financial leverage ratio, indicating a higher proportion of debt in the company’s capital structure. The trend suggests potential strategic financing decisions that could impact financial risk profiles. Monitoring the leverage increase is advisable, as it may affect solvency and the company's ability to weather economic fluctuations. Furthermore, the decline in equity prompts a closer examination of dividend policies, retained earnings, or other equity-impacting factors.
Interest Coverage
CSX Corp., interest coverage calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings | 987) | 1,018) | 1,111) | 1,178) | 859) | 934) | 968) | 1,173) | 706) | 760) | 736) | 499) | 770) | 771) | 856) | 870) | 834) | ||||||
| Add: Income tax expense | 317) | 286) | 312) | 380) | 270) | 271) | 311) | 357) | 231) | 234) | 232) | 153) | 243) | 210) | 269) | 276) | 230) | ||||||
| Add: Interest expense | 201) | 199) | 193) | 171) | 179) | 180) | 177) | 181) | 184) | 189) | 187) | 191) | 187) | 189) | 186) | 184) | 178) | ||||||
| Earnings before interest and tax (EBIT) | 1,505) | 1,503) | 1,616) | 1,729) | 1,308) | 1,385) | 1,456) | 1,711) | 1,121) | 1,183) | 1,155) | 843) | 1,200) | 1,170) | 1,311) | 1,330) | 1,242) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | 8.32 | 8.30 | 8.35 | 8.31 | 8.17 | 7.86 | 7.48 | 6.98 | 5.73 | 5.81 | 5.79 | 6.01 | 6.72 | 6.86 | 7.17 | 7.41 | 7.67 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Uber Technologies Inc. | -4.42 | -15.49 | -15.64 | -19.05 | -13.64 | -1.20 | -4.91 | -1.89 | -7.20 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 8.00 | 8.14 | 8.40 | 8.34 | 8.53 | 8.33 | 8.05 | 7.66 | 6.91 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 2.44 | 1.59 | 0.40 | 0.06 | -0.56 | -0.62 | -1.71 | -4.00 | -6.18 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 20.44 | 22.06 | 21.60 | 21.21 | 20.95 | 24.91 | 12.99 | 12.33 | 10.56 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Interest coverage
= (EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022
+ EBITQ2 2022)
÷ (Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022
+ Interest expenseQ2 2022)
= (1,505 + 1,503 + 1,616 + 1,729)
÷ (201 + 199 + 193 + 171)
= 8.32
2 Click competitor name to see calculations.
The analysis of earnings before interest and tax (EBIT), interest expense, and interest coverage ratio over the given periods reveals several notable trends and fluctuations.
- Earnings before Interest and Tax (EBIT)
- EBIT exhibits a fluctuating trend across the quarters with periods of growth and decline. Initially, it ranged from approximately 1,170 to 1,330 million US dollars in 2019. In early 2020, EBIT showed a decline, reaching a low of 843 million in the second quarter. This was followed by a recovery to around 1,183 million by the end of 2020. Throughout 2021 and early 2022, EBIT increased significantly, peaking at 1,729 million in the second quarter of 2022. Subsequently, it declined but remained elevated relative to earlier periods, stabilizing near 1,500 to 1,600 million by early 2023.
- Interest Expense
- Interest expense remained relatively stable over the entire period, fluctuating narrowly between 171 and 201 million US dollars. Minor increases were observed towards the end of the dataset, particularly in the fourth quarter of 2022 and the first quarter of 2023, where values reached 199 and 201 million, respectively. Overall, interest expense did not display any significant upward or downward trends but showed a slight uptick in the most recent quarters.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the company's ability to meet interest obligations from earnings, initially declined during 2019 and early 2020, hitting a low around 5.79 to 6.01. This decline correlates with the drop in EBIT observed during early 2020. Starting mid-2020, the ratio began to improve steadily, crossing above 7.0 in early 2021 and continuing to rise, reaching a peak of approximately 8.35 by the third quarter of 2022. A slight stabilization is observed thereafter, maintaining levels around 8.3 through early 2023. This improvement in the ratio indicates enhanced financial strength in covering interest expenses over time.
In summary, the company experienced volatility in operating profitability with a notable dip in early 2020, followed by a robust rebound and increased EBIT levels through 2021 and 2022. Interest expense remained fairly stable with a modest increase towards the end of the period. The interest coverage ratio's improvement reflects stronger earnings relative to interest costs, suggesting improved debt servicing capacity in recent quarters.