Current Ratio
since 2005
Calculation
Norfolk Southern Corp., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.86 | = | 2,167) | ÷ | 2,521) |
| Dec 31, 2020 | 1.07 | = | 2,318) | ÷ | 2,160) |
| Dec 31, 2019 | 0.90 | = | 2,081) | ÷ | 2,300) |
| Dec 31, 2018 | 0.72 | = | 1,862) | ÷ | 2,591) |
| Dec 31, 2017 | 0.84 | = | 2,149) | ÷ | 2,545) |
| Dec 31, 2016 | 0.98 | = | 2,291) | ÷ | 2,339) |
| Dec 31, 2015 | 1.18 | = | 2,633) | ÷ | 2,231) |
| Dec 31, 2014 | 1.56 | = | 2,778) | ÷ | 1,780) |
| Dec 31, 2013 | 1.33 | = | 3,075) | ÷ | 2,305) |
| Dec 31, 2012 | 1.08 | = | 2,242) | ÷ | 2,081) |
| Dec 31, 2011 | 1.03 | = | 1,751) | ÷ | 1,701) |
| Dec 31, 2010 | 1.19 | = | 2,471) | ÷ | 2,082) |
| Dec 31, 2009 | 1.26 | = | 2,246) | ÷ | 1,789) |
| Dec 31, 2008 | 0.95 | = | 1,999) | ÷ | 2,105) |
| Dec 31, 2007 | 0.86 | = | 1,675) | ÷ | 1,948) |
| Dec 31, 2006 | 1.15 | = | 2,400) | ÷ | 2,093) |
| Dec 31, 2005 | 1.38 | = | 2,650) | ÷ | 1,921) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity position of the entity exhibited significant volatility between 2005 and 2021, characterized by alternating periods of solvency and liquidity constraints. The current ratio fluctuated from a high of 1.56 in 2014 to a low of 0.72 in 2018, indicating a variable ability to cover short-term obligations with short-term assets.
- Initial Liquidity Decline and Recovery (2005–2011)
- A sharp decrease in the current ratio is observed from 1.38 in 2005 to 0.86 in 2007, primarily driven by a reduction in current assets from $2,650 million to $1,675 million. This was followed by a recovery phase where the ratio climbed back above 1.0 by 2009, reaching 1.26 as current assets increased to $2,246 million and liabilities decreased to $1,789 million.
- Peak Liquidity Period (2012–2014)
- The entity reached its strongest liquidity position during this interval. The current ratio peaked at 1.56 in 2014. This peak was not the result of maximum asset holdings—as current assets actually peaked in 2013 at $3,075 million—but rather a significant reduction in current liabilities, which dropped to a period low of $1,780 million in 2014.
- Liquidity Contraction and Recent Trends (2015–2021)
- A sustained downward trend in liquidity is evident starting in 2015. The current ratio fell consistently, reaching a minimum of 0.72 in 2018, a year marked by the simultaneous occurrence of low current assets ($1,862 million) and peak current liabilities ($2,591 million). While a brief recovery to 1.07 occurred in 2020, the ratio declined again to 0.86 by the end of 2021, reflecting a trend where current liabilities ($2,521 million) once again exceeded current assets ($2,167 million).
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Comparison to Competitors
Norfolk Southern Corp., current ratio, long-term trends, comparison to competitors
| Norfolk Southern Corp. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2021 | 0.86 | 1.51 | 0.98 | 0.62 | 1.19 | 1.42 |
| Dec 31, 2020 | 1.07 | 1.58 | 1.44 | 1.01 | 1.16 | 1.19 |
| Dec 31, 2019 | 0.90 | 1.45 | 2.47 | 0.79 | 0.55 | 1.11 |
| Dec 31, 2018 | 0.72 | 1.39 | — | 0.90 | 0.54 | 1.15 |
| Dec 31, 2017 | 0.84 | 1.59 | — | 1.02 | 0.56 | 1.22 |
| Dec 31, 2016 | 0.98 | 1.50 | — | 0.99 | 0.59 | 1.18 |
| Dec 31, 2015 | 1.18 | 1.84 | — | 1.29 | 0.63 | 1.23 |
| Dec 31, 2014 | 1.56 | 1.82 | — | 1.24 | 0.65 | 1.37 |
| Dec 31, 2013 | 1.33 | 1.96 | — | 1.05 | 0.72 | 1.88 |
| Dec 31, 2012 | 1.08 | 1.69 | — | 1.16 | 0.78 | 1.86 |
| Dec 31, 2011 | 1.03 | 1.70 | — | 1.12 | 0.97 | 1.89 |
| Dec 31, 2010 | 1.19 | 1.57 | — | 1.16 | 0.95 | 1.96 |
| Dec 31, 2009 | 1.26 | 1.57 | — | 1.37 | 0.79 | 1.49 |
| Dec 31, 2008 | 0.95 | 1.35 | — | 0.98 | 0.67 | 1.13 |
| Dec 31, 2007 | 0.86 | 1.22 | — | 0.85 | 0.76 | 1.20 |
| Dec 31, 2006 | 1.15 | 1.18 | — | 0.68 | 0.79 | 1.40 |
| Dec 31, 2005 | 1.38 | 1.11 | — | 0.69 | 0.81 | 1.62 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Transportation)
Norfolk Southern Corp., current ratio, long-term trends, comparison to sector (transportation)
| Norfolk Southern Corp. | Transportation | |
|---|---|---|
| Dec 31, 2021 | 0.86 | 1.24 |
| Dec 31, 2020 | 1.07 | 1.28 |
| Dec 31, 2019 | 0.90 | 1.13 |
| Dec 31, 2018 | 0.72 | 0.98 |
| Dec 31, 2017 | 0.84 | 1.06 |
| Dec 31, 2016 | 0.98 | 1.03 |
| Dec 31, 2015 | 1.18 | 1.12 |
| Dec 31, 2014 | 1.56 | 1.14 |
| Dec 31, 2013 | 1.33 | 1.30 |
| Dec 31, 2012 | 1.08 | 1.29 |
| Dec 31, 2011 | 1.03 | 1.35 |
| Dec 31, 2010 | 1.19 | 1.31 |
| Dec 31, 2009 | 1.26 | 1.26 |
| Dec 31, 2008 | 0.95 | 1.02 |
| Dec 31, 2007 | 0.86 | 1.03 |
| Dec 31, 2006 | 1.15 | 1.04 |
| Dec 31, 2005 | 1.38 | 1.13 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Norfolk Southern Corp., current ratio, long-term trends, comparison to industry (industrials)
| Norfolk Southern Corp. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 0.86 | 1.29 |
| Dec 31, 2020 | 1.07 | 1.41 |
| Dec 31, 2019 | 0.90 | 1.16 |
| Dec 31, 2018 | 0.72 | 1.13 |
| Dec 31, 2017 | 0.84 | 1.24 |
| Dec 31, 2016 | 0.98 | 1.22 |
| Dec 31, 2015 | 1.18 | 1.24 |
| Dec 31, 2014 | 1.56 | 1.26 |
| Dec 31, 2013 | 1.33 | 1.33 |
| Dec 31, 2012 | 1.08 | 1.30 |
| Dec 31, 2011 | 1.03 | 1.30 |
| Dec 31, 2010 | 1.19 | 1.28 |
| Dec 31, 2009 | 1.26 | 1.23 |
| Dec 31, 2008 | 0.95 | 1.06 |
| Dec 31, 2007 | 0.86 | 1.07 |
| Dec 31, 2006 | 1.15 | 1.05 |
| Dec 31, 2005 | 1.38 | 1.05 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).