Norfolk Southern Corp. (NYSE:NSC)

The financial data for the current assets reflects a fluctuating trend over the reviewed periods. Initially, current assets decreased from 2,149 million US dollars at the end of 2017 to 1,862 million US dollars by the end of 2018. Subsequently, there was a recovery and an upward movement as current assets increased to 2,081 million US dollars in 2019 and further to 2,318 million US dollars in 2020. By the end of 2021, the current assets showed a slight decline to 2,167 million US dollars.

Adjusted current assets closely follow the same pattern as current assets throughout the periods. The values begin at 2,156 million US dollars in 2017, falling to 1,869 million US dollars in 2018, then increasing to 2,090 million US dollars in 2019, and peaking at 2,324 million US dollars in 2020 before decreasing to 2,175 million US dollars in 2021.

Trend Analysis

Both current assets and adjusted current assets experienced a decline during 2018, which may suggest a temporary tightening in liquidity or a reduction in short-term resources.

The subsequent recovery and peak in 2020 indicate an improvement in the company's liquidity or an accumulation of short-term assets, which might correlate with strategic operational adjustments or market conditions favoring asset growth.

The slight decrease in 2021 suggests a modest reversal or stabilization after growth, reflecting possible asset management decisions or market challenges.

Relationship between Current and Adjusted Current Assets

Adjusted current assets consistently remain marginally higher than reported current assets, indicating adjustments that possibly account for reclassifications or internal financial considerations that present a slightly more favorable current asset position.

The financial data reveals a steady growth in the total assets of the company over the five-year period from the end of 2017 to the end of 2021. Total assets increased from US$35,711 million in 2017 to US$38,493 million in 2021, reflecting a cumulative growth of approximately 7.8%. This indicates a gradual expansion in the asset base over the observed timeframe.

Similarly, the adjusted total assets exhibit a consistent upward trend, rising from US$36,218 million in 2017 to US$38,501 million in 2021. The adjusted total assets maintained a slightly higher level compared to total assets throughout the period, suggesting that certain adjustments or revaluations have been applied, leading to a marginally enhanced asset valuation.

Total Assets

The total assets showed a steady increase each year with minimal fluctuation, highlighting stable asset growth. The most significant year-on-year increase occurred between 2018 and 2019.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, maintaining a slight premium in valuation. This consistency reflects the reliability of the underlying asset base and the adjustments made.

Overall Asset Growth Trend

Both asset measures indicate a controlled and continuous asset accumulation, signaling positive capital investment or asset appreciation without abrupt volatility.

In summary, the financial data demonstrates that the company has maintained a positive trajectory in asset growth, with both total and adjusted total assets steadily increasing year-over-year. This trend suggests effective asset management and a strong capital position over the analyzed period.

The financial data reveals an increasing trend in both total liabilities and adjusted total liabilities over the five-year period from 2017 to 2021.

Total liabilities

Total liabilities rose consistently year over year, starting at US$19,352 million in 2017 and escalating to US$24,852 million by the end of 2021. This represents an overall increase of approximately 28.4%, indicating a steady growth in the company's obligations or debt levels during this time frame.

Adjusted total liabilities

Adjusted total liabilities also showed a steady increase, beginning at US$13,528 million in 2017 and reaching US$17,687 million in 2021. This amounted to a cumulative growth of about 30.7%. The adjusted figures reflect a similar upward trajectory as total liabilities, suggesting consistent trends when excluding or adjusting for specific components.

Comparative observations

Both metrics grew at a comparable rate, with the adjusted total liabilities consistently lower than the total liabilities by a significant margin each year. The gap between total and adjusted liabilities appears to be relatively stable, implying a consistent adjustment methodology or a stable proportion of liabilities being excluded or modified.

In summary, the company has experienced a continuous rise in liabilities over the specified period, which may point to increased borrowing or heightened financial obligations. The parallel increase in adjusted total liabilities reinforces this observation, indicating that the rise is not merely due to accounting adjustments but represents an underlying growth in the financial commitment of the company.

The financial data over the five-year period exhibits a consistent downward trend in both stockholders’ equity and adjusted stockholders’ equity for the company.

Stockholders’ Equity

Stockholders’ equity shows a gradual decrease from US$16,359 million at the end of 2017 to US$13,641 million by the end of 2021. This reflects a reduction of approximately 16.6% over the period. The decline appears steady year-over-year, with no signs of recovery or stabilization in the final reported year.

Adjusted Stockholders’ Equity

Similarly, adjusted stockholders’ equity follows a downward trend, falling from US$22,690 million in 2017 to US$20,814 million in 2021. The decline, amounting to roughly 8.3%, is less steep compared to the unadjusted equity amount but still indicative of shrinking equity on an adjusted basis. The values show marginal fluctuations but no upward trend within the timeframe.

Overall, the data suggests a consistent reduction in the company's equity base over the specified timeframe. This may reflect factors such as accumulated losses, dividend payments exceeding earnings, share repurchases, or other financial adjustments impacting the equity accounts. The adjusted equity figures remain consistently higher than the unadjusted equity, implying the adjustments add significant value or account for certain revaluations or other elements not captured in the base equity.

The financial data over the five-year period displays several notable trends concerning the company's debt, equity, and capital structure. There is a consistent increase in both reported and adjusted debt figures, indicating a growing reliance on debt financing.

Total Reported Debt

The total reported debt increased each year, starting at 9,836 million US dollars in 2017 and reaching 13,840 million US dollars by 2021. This represents an approximate 40.7% increase over the period, reflecting an upward trend in borrowing or debt accumulation.

Stockholders' Equity

Contrary to the debt trend, stockholders' equity demonstrates a steady decline. Beginning at 16,359 million US dollars in 2017, it decreased to 13,641 million US dollars by 2021, indicating a reduction of about 16.6%. This decline may reflect changes such as share repurchases, dividends, or accumulated losses.

Total Reported Capital

Total reported capital, which combines debt and equity, remains relatively stable, slightly increasing from 26,195 million US dollars in 2017 to 27,481 million US dollars in 2021. This modest growth suggests overall capital base stability despite shifts in its composition.

Adjusted Total Debt

Adjusted total debt figures confirm the increasing debt trend, ascending from 10,336 million US dollars in 2017 to 14,253 million US dollars in 2021. This further substantiates the expanding debt levels under a different measurement or accounting adjustment.

Adjusted Stockholders’ Equity

Similarly, adjusted stockholders' equity shows a decreasing pattern, falling from 22,690 million US dollars in 2017 to 20,814 million US dollars in 2021. This decline is less steep compared to the reported equity, possibly reflecting adjustments that mitigate some equity reduction effects over the period.

Adjusted Total Capital

Adjusted total capital also experiences a gradual increase from 33,026 million US dollars in 2017 to 35,067 million US dollars in 2021. The growth is modest but consistent, indicating a stable expansion of the company's capital base when adjustments are considered.

Overall, the data indicates a strategic increase in debt financing alongside a reduction in equity levels, maintaining a relatively stable total capital base. This shift may suggest a deliberate capital structure optimization or response to market conditions. The parallel increase in both reported and adjusted debt and total capital confirms the robustness of this observed pattern.

Net Income

The net income demonstrates a notable fluctuation over the five-year period. Starting at a high point in 2017 with 5,404 million US dollars, it experienced a sharp decline in 2018 to 2,666 million, effectively halving the previous year's profit. This lower level was sustained in 2019 with a slight increase to 2,722 million but then decreased again in 2020 to 2,013 million, reflecting the possible impact of external economic pressures. In 2021, there was a recovery with net income rising to 3,005 million, although the figure remained significantly below the 2017 peak.

Adjusted Net Income

Adjusted net income shows a more stable and generally upward trend compared to net income. Beginning at 2,679 million US dollars in 2017, it slightly increased to 2,720 million in 2018. A more significant rise occurred in 2019, reaching 3,126 million. However, this was followed by a decline in 2020 to 2,049 million, consistent with the lower net income noted in the same year. In 2021, adjusted net income climbed sharply to 3,383 million, surpassing all previous years and indicating strong operational performance when adjustments are considered.

General Observations

The disparity between net income and adjusted net income figures suggests the presence of exceptional items or adjustments that affect reported earnings. Adjusted net income displays less volatility and shows a pattern of recovery and growth after 2020, in contrast to the more erratic net income. The year 2020 marks a low point for both metrics, likely reflecting adverse conditions during that period, followed by a recovery in 2021. Overall, the data reflects economic and operational challenges impacting profitability with signs of improvement in the most recent year.