Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

CSX Corp., profitability ratios

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	CSX Corp.’s gross profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	CSX Corp.’s operating profit margin improved from 2016 to 2017 and from 2017 to 2018.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	CSX Corp.’s net profit margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	CSX Corp.’s ROE improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
ROA	A profitability ratio calculated as net income divided by total assets.	CSX Corp.’s ROA improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

CSX Corp., gross profit margin calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Gross profit
	Revenue
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	FedEx Corp.
	Union Pacific Corp.
	United Parcel Service Inc.

2018 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	CSX Corp.’s gross profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

CSX Corp., operating profit margin calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Operating income
	Revenue
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	FedEx Corp.
	Union Pacific Corp.
	United Parcel Service Inc.
	Operating Profit Margin, Sector
	Industrial Transportation
	Operating Profit Margin, Industry
	Industrials

2018 Calculations

¹ Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	CSX Corp.’s operating profit margin improved from 2016 to 2017 and from 2017 to 2018.

CSX Corp., net profit margin calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Net earnings
	Revenue
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	FedEx Corp.
	Union Pacific Corp.
	United Parcel Service Inc.
	Net Profit Margin, Sector
	Industrial Transportation
	Net Profit Margin, Industry
	Industrials

2018 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Revenue
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	CSX Corp.’s net profit margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

CSX Corp., ROE calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Net earnings
	Shareholders’ equity, attributable to CSX
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	FedEx Corp.
	Union Pacific Corp.
	United Parcel Service Inc.
	ROE, Sector
	Industrial Transportation
	ROE, Industry
	Industrials

2018 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ equity, attributable to CSX
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	CSX Corp.’s ROE improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

CSX Corp., ROA calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Net earnings
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	FedEx Corp.
	Union Pacific Corp.
	United Parcel Service Inc.
	ROA, Sector
	Industrial Transportation
	ROA, Industry
	Industrials

2018 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	CSX Corp.’s ROA improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

	CSX Corp.	Other companies (not purchased previously)
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Common-Size Financial Statements
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Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
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Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

CSX Corp. (CSX)

Profitability Analysis