Common-Size Income Statement
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- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
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Norfolk Southern Corp., common-size consolidated income statement
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.