Debt to Equity
since 2005
Calculation
Norfolk Southern Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 1.01 | = | 13,840) | ÷ | 13,641) |
| Dec 31, 2020 | 0.86 | = | 12,681) | ÷ | 14,791) |
| Dec 31, 2019 | 0.80 | = | 12,196) | ÷ | 15,184) |
| Dec 31, 2018 | 0.73 | = | 11,145) | ÷ | 15,362) |
| Dec 31, 2017 | 0.60 | = | 9,836) | ÷ | 16,359) |
| Dec 31, 2016 | 0.82 | = | 10,212) | ÷ | 12,409) |
| Dec 31, 2015 | 0.83 | = | 10,093) | ÷ | 12,188) |
| Dec 31, 2014 | 0.73 | = | 9,026) | ÷ | 12,408) |
| Dec 31, 2013 | 0.84 | = | 9,448) | ÷ | 11,289) |
| Dec 31, 2012 | 0.89 | = | 8,682) | ÷ | 9,760) |
| Dec 31, 2011 | 0.76 | = | 7,540) | ÷ | 9,911) |
| Dec 31, 2010 | 0.66 | = | 7,025) | ÷ | 10,669) |
| Dec 31, 2009 | 0.69 | = | 7,153) | ÷ | 10,353) |
| Dec 31, 2008 | 0.69 | = | 6,667) | ÷ | 9,607) |
| Dec 31, 2007 | 0.65 | = | 6,368) | ÷ | 9,727) |
| Dec 31, 2006 | 0.69 | = | 6,600) | ÷ | 9,615) |
| Dec 31, 2005 | 0.75 | = | 6,930) | ÷ | 9,289) |
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 financial leverage profile of Norfolk Southern Corp. between 2005 and 2021 is characterized by a long-term expansion of total debt and a fluctuating equity base, resulting in a progressive increase in financial risk toward the end of the period.
- Total Debt Trajectory
- Total debt exhibited a consistent upward trend, increasing from US$ 6,930 million in 2005 to US$ 13,840 million by December 31, 2021. This represents an approximate doubling of the debt load over the sixteen-year span. While minor decreases were noted in 2006, 2007, 2010, and 2017, the overall momentum remained positive, with more aggressive growth occurring after 2017.
- Stockholders' Equity Evolution
- Stockholders' equity grew from US$ 9,289 million in 2005 to a peak of US$ 16,359 million in 2017. However, a downward trend emerged following this peak, with equity declining to US$ 13,641 million by 2021. The convergence of declining equity and rising debt in the final four years of the period significantly impacted the organization's solvency metrics.
- Debt to Equity Ratio Dynamics
- The debt to equity ratio remained relatively stable between 0.65 and 0.76 from 2005 to 2011. A period of increased volatility followed, with a peak of 0.89 in 2012 and a significant low of 0.60 in 2017. From 2018 onward, a steady and uninterrupted increase is observed, with the ratio climbing from 0.73 in 2018 to 1.01 in 2021. This final value marks a critical threshold where total debt exceeded stockholders' equity for the first time in the analyzed period.
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Comparison to Competitors
Norfolk Southern Corp., debt to equity, 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 | 1.01 | 0.86 | 0.64 | 2.10 | 7.03 | 1.54 |
| Dec 31, 2020 | 0.86 | 1.20 | 0.62 | 1.58 | 4.75 | 37.53 |
| Dec 31, 2019 | 0.80 | 0.99 | 0.40 | 1.39 | 1.29 | 7.73 |
| Dec 31, 2018 | 0.73 | 0.85 | — | 1.10 | 1.47 | 7.53 |
| Dec 31, 2017 | 0.60 | 0.93 | — | 0.68 | 1.63 | 24.29 |
| Dec 31, 2016 | 0.82 | 1.01 | — | 0.75 | 1.35 | 39.69 |
| Dec 31, 2015 | 0.83 | 0.48 | — | 0.69 | 1.31 | 5.80 |
| Dec 31, 2014 | 0.73 | 0.31 | — | 0.54 | 5.06 | 5.04 |
| Dec 31, 2013 | 0.84 | 0.17 | — | 0.45 | 4.16 | 1.68 |
| Dec 31, 2012 | 0.89 | 0.11 | — | 0.45 | 27.37 | 2.77 |
| Dec 31, 2011 | 0.76 | 0.11 | — | 0.48 | 7.05 | 1.58 |
| Dec 31, 2010 | 0.66 | 0.14 | — | 0.52 | 8.76 | 1.36 |
| Dec 31, 2009 | 0.69 | 0.19 | — | 0.58 | — | 1.25 |
| Dec 31, 2008 | 0.69 | 0.14 | — | 0.58 | — | 1.46 |
| Dec 31, 2007 | 0.65 | 0.21 | — | 0.49 | 3.49 | 0.90 |
| Dec 31, 2006 | 0.69 | 0.21 | — | 0.44 | 4.93 | 0.27 |
| Dec 31, 2005 | 0.75 | 0.29 | — | 0.54 | — | 0.24 |
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., debt to equity, long-term trends, comparison to sector (transportation)
| Norfolk Southern Corp. | Transportation | |
|---|---|---|
| Dec 31, 2021 | 1.01 | 1.63 |
| Dec 31, 2020 | 0.86 | 2.02 |
| Dec 31, 2019 | 0.80 | 1.36 |
| Dec 31, 2018 | 0.73 | 1.45 |
| Dec 31, 2017 | 0.60 | 1.39 |
| Dec 31, 2016 | 0.82 | 1.32 |
| Dec 31, 2015 | 0.83 | 1.01 |
| Dec 31, 2014 | 0.73 | 0.95 |
| Dec 31, 2013 | 0.84 | 0.75 |
| Dec 31, 2012 | 0.89 | 0.92 |
| Dec 31, 2011 | 0.76 | 0.81 |
| Dec 31, 2010 | 0.66 | 0.90 |
| Dec 31, 2009 | 0.69 | 0.86 |
| Dec 31, 2008 | 0.69 | 0.84 |
| Dec 31, 2007 | 0.65 | 0.70 |
| Dec 31, 2006 | 0.69 | 0.54 |
| Dec 31, 2005 | 0.75 | 1.07 |
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., debt to equity, long-term trends, comparison to industry (industrials)
| Norfolk Southern Corp. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 1.01 | 1.37 |
| Dec 31, 2020 | 0.86 | 1.82 |
| Dec 31, 2019 | 0.80 | 1.82 |
| Dec 31, 2018 | 0.73 | 1.85 |
| Dec 31, 2017 | 0.60 | 1.65 |
| Dec 31, 2016 | 0.82 | 1.54 |
| Dec 31, 2015 | 0.83 | 1.51 |
| Dec 31, 2014 | 0.73 | 1.89 |
| Dec 31, 2013 | 0.84 | 1.79 |
| Dec 31, 2012 | 0.89 | 2.29 |
| Dec 31, 2011 | 0.76 | 2.60 |
| Dec 31, 2010 | 0.66 | 2.68 |
| Dec 31, 2009 | 0.69 | 3.01 |
| Dec 31, 2008 | 0.69 | 3.54 |
| Dec 31, 2007 | 0.65 | 2.73 |
| Dec 31, 2006 | 0.69 | 2.49 |
| Dec 31, 2005 | 0.75 | 2.42 |
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).