Stock Analysis on Net
Stock Analysis on Net

Norfolk Southern Corp. (NYSE:NSC)

This company has been moved to the archive! The financial data has not been updated since April 27, 2022.

Common-Size Income Statement 

Norfolk Southern Corp., common-size consolidated income statement

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Railway operating revenues 100.00 100.00 100.00 100.00 100.00
Purchased services and rents -15.49 -17.23 -15.27 -15.10 -13.40
Fuel -7.17 -5.47 -8.44 -9.49 -7.96
Cost of railway operating revenues -22.66% -22.70% -23.71% -24.59% -21.36%
Gross profit 77.34% 77.30% 76.29% 75.41% 78.64%
Compensation and benefits -21.92 -24.24 -24.35 -25.53 -27.63
Depreciation -10.60 -11.79 -10.07 -9.62 -10.00
Materials and other -4.91 -6.67 -6.55 -5.72 -7.02
Loss on asset disposal 0.00 -3.93 0.00 0.00 0.00
Income from railway operations 39.91% 30.67% 35.31% 34.55% 33.99%
Pension and other postretirement benefits 0.92 0.93 0.56 0.53 0.00
COLI, net 0.15 0.87 0.61 -0.09 0.31
Other -0.38 -0.23 -0.23 0.14 0.56
Other income, net 0.69% 1.56% 0.94% 0.58% 0.87%
Interest expense on debt -5.80 -6.38 -5.35 -4.86 -5.21
Income before income taxes 34.81% 25.85% 30.90% 30.28% 29.65%
Income taxes -7.84 -5.28 -6.81 -7.01 21.57
Net income 26.97% 20.56% 24.10% 23.27% 51.22%

Based on: 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), 10-K (reporting date: 2017-12-31).

The financial data over the five-year period exhibits various trends in the cost structure and profitability metrics relative to railway operating revenues.

Cost Components
The proportion of purchased services and rents as a percentage of railway operating revenues increased from -13.4% in 2017 to a peak of -17.23% in 2020 before improving slightly to -15.49% in 2021. Fuel costs demonstrated volatility, rising from -7.96% in 2017 to a high of -9.49% in 2018, then falling significantly to -5.47% in 2020, and increasing again to -7.17% in 2021. The overall cost of railway operating revenues ranged narrowly between -21.36% and -24.59% in the first three years, marginally decreasing to -22.66% in 2021 after a low point of -22.7% in 2020.
Profitability
Gross profit remained relatively stable, fluctuating slightly around the mid to high seventies percentile of railway operating revenues, starting at 78.64% in 2017, dipping to 75.41% in 2018, and returning to around 77.34% by 2021. Income from railway operations showed a strong upward trend, notably rising to 39.91% in 2021 from values near 33-35% in earlier years, indicating improved operational efficiency or revenue mix.
Labor and Depreciation Expenses
Compensation and benefits expenses as a proportion of railway revenues decreased steadily from -27.63% in 2017 to -21.92% in 2021, suggesting enhanced cost control or changes in workforce structure. Depreciation expenses showed a slight increase from -10% in 2017 to a peak of -11.79% in 2020, then receded to -10.6% in 2021, reflecting potential variations in asset base utilization or capital expenditure patterns.
Other Operating Expenses and Income
Materials and other costs fluctuated but generally declined, improving from -7.02% in 2017 to -4.91% in 2021. An identified loss on asset disposal was recorded only in 2020 at -3.93%, impacting that year's cost structure. Other income components including pension and postretirement benefits showed a gradual increase, rising to around 0.92% by 2021. Other income, net increased to 1.56% in 2020 before receding to 0.69% in 2021.
Interest and Taxation
Interest expense on debt varied modestly, peaking at -6.38% in 2020, then declining slightly to -5.8% in 2021. Notably, income taxes as a percentage of railway operating revenues were negative after 2017, ranging from approximately -5.28% to -7.84% from 2018 to 2021, which may reflect tax credits, deferred tax assets, or other tax-related benefits during these periods.
Net Income
Net income as a percentage of railway operating revenues demonstrated a declining trend from a high of 51.22% in 2017 to around 20.56% in 2020, before recovering to 26.97% in 2021. This pattern indicates fluctuating profitability potentially influenced by cost volatility and changes in operational income.