Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
CSX Corp., profitability ratios
Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10).
| Profitability 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 ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | CSX Corp.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | CSX Corp.’s net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | CSX Corp.’s ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | CSX Corp.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |
Gross Profit Margin
CSX Corp., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 30, 2016 | Dec 25, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 9,247 | 9,237 | 8,431 | 8,264 | 8,498 | |
| Revenue | 11,937 | 12,250 | 11,408 | 11,069 | 11,811 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 77.47% | 75.40% | 73.90% | 74.66% | 71.95% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 61.64% | 62.63% | 63.50% | 65.60% | 64.21% | |
| Norfolk Southern Corp. | 76.29% | 75.41% | 78.64% | 77.29% | 74.45% | |
| Union Pacific Corp. | 79.91% | 78.21% | 79.97% | 81.21% | 79.67% | |
| United Parcel Service Inc. | 74.21% | 72.27% | 75.05% | 77.31% | 77.82% | |
Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10).
1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 9,247 ÷ 11,937 = 77.47%
2 Click competitor name to see calculations.
| Profitability 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 ratio improved from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
CSX Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 30, 2016 | Dec 25, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 4,965 | 4,869 | 3,667 | 3,389 | 3,584 | |
| Revenue | 11,937 | 12,250 | 11,408 | 11,069 | 11,811 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 41.59% | 39.75% | 32.14% | 30.62% | 30.34% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 6.41% | 7.44% | 8.35% | 6.11% | 3.93% | |
| Norfolk Southern Corp. | 35.31% | 34.55% | 33.99% | 31.09% | 27.44% | |
| Union Pacific Corp. | 39.40% | 37.30% | 37.95% | 36.47% | 36.91% | |
| United Parcel Service Inc. | 10.52% | 9.77% | 11.43% | 8.98% | 13.14% | |
| Operating Profit Margin, Sector | ||||||
| Industrial Transportation | 15.78% | 15.90% | 16.46% | 14.64% | 16.04% | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 13.31% | 14.22% | 13.95% | 12.91% | 13.68% | |
Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10).
1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 4,965 ÷ 11,937 = 41.59%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | CSX Corp.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019. |
Net Profit Margin
CSX Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 30, 2016 | Dec 25, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 3,331 | 3,309 | 5,471 | 1,714 | 1,968 | |
| Revenue | 11,937 | 12,250 | 11,408 | 11,069 | 11,811 | |
| Profitability Ratio | ||||||
| Net profit margin1 | 27.90% | 27.01% | 47.96% | 15.48% | 16.66% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 0.77% | 6.99% | 4.97% | 3.61% | 2.21% | |
| Norfolk Southern Corp. | 24.10% | 23.27% | 51.22% | 16.87% | 14.80% | |
| Union Pacific Corp. | 27.27% | 26.13% | 50.43% | 21.23% | 21.88% | |
| United Parcel Service Inc. | 5.99% | 6.67% | 7.45% | 5.63% | 8.30% | |
| Net Profit Margin, Sector | ||||||
| Industrial Transportation | 8.98% | 11.59% | 17.41% | 8.46% | 9.46% | |
| Net Profit Margin, Industry | ||||||
| Industrials | 7.35% | 6.75% | 8.10% | 8.70% | 6.90% | |
Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10).
1 2019 Calculation
Net profit margin = 100 × Net earnings ÷ Revenue
= 100 × 3,331 ÷ 11,937 = 27.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | CSX Corp.’s net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Return on Equity (ROE)
CSX Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 30, 2016 | Dec 25, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 3,331 | 3,309 | 5,471 | 1,714 | 1,968 | |
| Shareholders’ equity, attributable to CSX | 11,848 | 12,563 | 14,705 | 11,679 | 11,652 | |
| Profitability Ratio | ||||||
| ROE1 | 28.11% | 26.34% | 37.21% | 14.68% | 16.89% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| FedEx Corp. | 3.04% | 23.55% | 18.65% | 13.20% | 7.00% | |
| Norfolk Southern Corp. | 17.93% | 17.35% | 33.03% | 13.44% | 12.77% | |
| Union Pacific Corp. | 32.65% | 29.21% | 43.10% | 21.24% | 23.05% | |
| United Parcel Service Inc. | 135.90% | 158.59% | 491.00% | 847.16% | 196.11% | |
| ROE, Sector | ||||||
| Industrial Transportation | 25.61% | 30.10% | 40.41% | 22.10% | 22.89% | |
| ROE, Industry | ||||||
| Industrials | 25.35% | 23.94% | 23.97% | 25.01% | 17.18% | |
Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10).
1 2019 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity, attributable to CSX
= 100 × 3,331 ÷ 11,848 = 28.11%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | CSX Corp.’s ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Return on Assets (ROA)
CSX Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 30, 2016 | Dec 25, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 3,331 | 3,309 | 5,471 | 1,714 | 1,968 | |
| Total assets | 38,257 | 36,729 | 35,739 | 35,414 | 35,039 | |
| Profitability Ratio | ||||||
| ROA1 | 8.71% | 9.01% | 15.31% | 4.84% | 5.62% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| FedEx Corp. | 0.99% | 8.74% | 6.17% | 3.95% | 2.83% | |
| Norfolk Southern Corp. | 7.18% | 7.36% | 15.13% | 4.78% | 4.54% | |
| Union Pacific Corp. | 9.60% | 10.09% | 18.53% | 7.60% | 8.74% | |
| United Parcel Service Inc. | 7.67% | 9.58% | 10.81% | 8.50% | 12.64% | |
| ROA, Sector | ||||||
| Industrial Transportation | 6.78% | 9.09% | 13.21% | 6.06% | 7.12% | |
| ROA, Industry | ||||||
| Industrials | 4.60% | 4.49% | 5.01% | 5.36% | 3.86% | |
Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-10).
1 2019 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 3,331 ÷ 38,257 = 8.71%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | CSX Corp.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |