Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
CSX Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to CSX Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
CSX Corp., profitability ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | ||||||
| Net profit margin | ||||||
| Return on Investment | ||||||
| Return on equity (ROE) | ||||||
| Return on assets (ROA) | ||||||
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).
- Operating Profit Margin
- The operating profit margin exhibits a generally stable trend with some fluctuations over the analyzed period. Starting at 39.75% in 2018, it increased to a peak of 44.67% in 2021, indicating an improvement in operational efficiency. However, it slightly declined to 40.55% in 2022, suggesting some pressure on operational profitability during the last year.
- Net Profit Margin
- The net profit margin demonstrates a similar pattern to the operating margin but with smaller variations. It rose modestly from 27.01% in 2018 to 27.9% in 2019, then experienced a decline in 2020 to 26.13%. This was followed by a rebound to 30.19% in 2021, marking the highest margin in the timeframe, before falling again to 28.05% in 2022. This reflects some volatility in the bottom-line profitability but maintains a generally strong level.
- Return on Equity (ROE)
- The return on equity exhibited notable variability across the years. It began at 26.34% in 2018, increased to 28.11% in 2019, but dropped significantly to 21.11% in 2020, possibly indicating a challenging year in terms of equity profitability. The ratio rebounded strongly in 2021 to 28.03% and further improved to 33.02% in 2022, suggesting enhanced effectiveness in generating profits from shareholders' equity in recent years.
- Return on Assets (ROA)
- The return on assets trend shows moderate fluctuations. It slightly decreased from 9.01% in 2018 to 8.71% in 2019, followed by a more pronounced dip to 6.95% in 2020. Subsequently, it improved to 9.33% in 2021 and continued its upward trajectory to reach 9.94% in 2022. This indicates a recovery and gradual improvement in asset utilization efficiency over the last two years.
Return on Sales
Return on Investment
Operating Profit Margin
CSX Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Transportation | ||||||
| Operating Profit Margin, Industry | ||||||
| Industrials | ||||||
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 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data indicates several notable trends over the five-year period ending in 2022. Revenue experienced fluctuations, initially declining from 12,250 million USD in 2018 to 10,583 million USD in 2020, followed by a recovery and growth to 14,853 million USD by 2022. This suggests a period of contraction or challenges in 2019 and 2020, with a strong rebound thereafter.
Operating income generally followed a similar pattern but with less volatility. It increased slightly from 4,869 million USD in 2018 to 4,965 million USD in 2019 before declining to 4,362 million USD in 2020. Subsequently, operating income showed a robust recovery, rising to 5,594 million USD in 2021 and further to 6,023 million USD in 2022.
Operating profit margin exhibited some variability but remained relatively high throughout the period. It peaked at 44.67% in 2021, reflecting improved operational efficiency or favorable cost control in that year, despite a modest decline to 40.55% in 2022. The margin in earlier years ranged from about 39.75% to 41.59%, indicating stable profitability before the more significant improvement seen in 2021.
Overall, these trends show that after a dip in revenue and operating income during 2019 and 2020, likely related to external factors impacting the market or operations, there was a strong recovery in 2021 and 2022. The high operating profit margins, especially in the later years, suggest effective management of operating costs and a profitable operational model. The return to and surpassing of pre-2019 revenue levels by 2022 also signals growth and potential expansion.
Net Profit Margin
CSX Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Transportation | ||||||
| Net Profit Margin, Industry | ||||||
| Industrials | ||||||
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 2022 Calculation
Net profit margin = 100 × Net earnings ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several important trends in the company's earnings, revenue, and profitability.
- Net Earnings
- The net earnings showed moderate fluctuations, starting at $3,309 million in 2018 and slightly increasing to $3,331 million in 2019. A decline occurred in 2020, where earnings decreased significantly to $2,765 million, likely reflecting operational challenges or external economic factors. The earnings recovered strongly in 2021, reaching $3,781 million, and continued to grow in 2022 to $4,166 million, marking the highest level in the analyzed period.
- Revenue
- Revenue exhibited a downward trend from 2018 to 2020, dropping from $12,250 million to $10,583 million. This decline aligned with the reduction in net earnings during the same period. However, revenue rebounded in 2021, increasing to $12,522 million, and showed a substantial rise in 2022, reaching $14,853 million. The growth in revenue in the last two years indicates an improvement in sales or operational effectiveness post-2020.
- Net Profit Margin
- The net profit margin remained relatively stable but showed variability. It was 27.01% in 2018 and slightly increased to 27.9% in 2019. In 2020, the margin dipped to 26.13%, consistent with the drop in earnings and revenue. The margin peaked at 30.19% in 2021, reflecting enhanced profitability relative to revenue. In 2022, the margin decreased somewhat to 28.05%, which still represents a healthy level compared to the initial years.
Overall, the data points to a challenging period in 2020 with decreased revenue and earnings, followed by a robust recovery in the subsequent two years. The improved profit margins in 2021 and 2022 suggest better cost management or pricing strategies despite the fluctuations in revenue and net earnings. The company's financial performance demonstrates resilience and growth momentum in the latter part of the timeframe analyzed.
Return on Equity (ROE)
CSX Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | ||||||
| Shareholders’ equity, attributable to CSX | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| ROE, Sector | ||||||
| Transportation | ||||||
| ROE, Industry | ||||||
| Industrials | ||||||
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 2022 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity, attributable to CSX
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's performance and financial position over the five-year period from 2018 to 2022.
- Net Earnings
- Net earnings exhibited a fluctuating pattern throughout the period. Initial earnings were strong at 3,309 million USD in 2018, followed by a marginal increase to 3,331 million USD in 2019. There was a marked decline in 2020 to 2,765 million USD, aligning potentially with broader economic impacts during that year. Subsequently, the company demonstrated recovery and growth, with net earnings rising significantly to 3,781 million USD in 2021 and further to 4,166 million USD in 2022, reaching the highest point in the observed timeline.
- Shareholders’ Equity
- The shareholders’ equity attributable to the company displayed relative stability but with some volatility. It began at 12,563 million USD in 2018, decreased to 11,848 million USD in 2019, then increased to 13,101 million USD in 2020. This was followed by a slight growth to 13,490 million USD in 2021 before decreasing again to 12,615 million USD in 2022. Overall, shareholders' equity remained within a narrow range, indicating moderate changes in the company’s net asset base during the period.
- Return on Equity (ROE)
- The Return on Equity percentage shows a generally positive trend, reflecting efficiency in generating profits from shareholders' equity. ROE increased from 26.34% in 2018 to 28.11% in 2019. There was a dip in 2020 to 21.11%, corresponding with the decline in net earnings and a slight increase in equity. The ROE subsequently improved to 28.03% in 2021 and further increased appreciably to 33.02% in 2022, signaling enhanced profitability and potentially improved operational performance or capital management in the last two years.
In summary, the company experienced a temporary setback in earnings and profitability in 2020, followed by a strong rebound in subsequent years. Shareholders’ equity remained relatively stable, while the return on equity improved overall, indicating increased effectiveness in utilizing shareholders’ funds to generate profits by 2022.
Return on Assets (ROA)
CSX Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| ROA, Sector | ||||||
| Transportation | ||||||
| ROA, Industry | ||||||
| Industrials | ||||||
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 2022 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Earnings
- Net earnings experienced fluctuations over the five-year period. Starting at 3,309 million USD in 2018, there was a slight increase to 3,331 million USD in 2019. This was followed by a decline to 2,765 million USD in 2020, likely influenced by challenging economic conditions during that year. Subsequently, net earnings recovered strongly, increasing to 3,781 million USD in 2021 and further to 4,166 million USD in 2022, reflecting improved profitability in the latter years.
- Total Assets
- Total assets showed a steady upward trend throughout the period. Beginning at 36,729 million USD in 2018, total assets consistently grew each year, reaching 38,257 million USD in 2019, 39,793 million USD in 2020, 40,531 million USD in 2021, and 41,912 million USD in 2022. This indicates ongoing asset accumulation and potential investments in company resources over time.
- Return on Assets (ROA)
- Return on Assets mirrored the fluctuations observed in net earnings, with some variability over the period. ROA started at 9.01% in 2018, dipped slightly to 8.71% in 2019, and then declined more noticeably to 6.95% in 2020, reflecting the reduced profitability in that year relative to asset base. In 2021, ROA rebounded to 9.33%, surpassing previous years, and improved further to 9.94% in 2022, suggesting enhanced efficiency in utilizing assets to generate earnings.