Net Profit Margin
since 2005
Calculation
Norfolk Southern Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Railway operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 26.97% | = | 100 | × | 3,005) | ÷ | 11,142) |
| Dec 31, 2020 | 20.56% | = | 100 | × | 2,013) | ÷ | 9,789) |
| Dec 31, 2019 | 24.10% | = | 100 | × | 2,722) | ÷ | 11,296) |
| Dec 31, 2018 | 23.27% | = | 100 | × | 2,666) | ÷ | 11,458) |
| Dec 31, 2017 | 51.22% | = | 100 | × | 5,404) | ÷ | 10,551) |
| Dec 31, 2016 | 16.87% | = | 100 | × | 1,668) | ÷ | 9,888) |
| Dec 31, 2015 | 14.80% | = | 100 | × | 1,556) | ÷ | 10,511) |
| Dec 31, 2014 | 17.21% | = | 100 | × | 2,000) | ÷ | 11,624) |
| Dec 31, 2013 | 16.99% | = | 100 | × | 1,910) | ÷ | 11,245) |
| Dec 31, 2012 | 15.84% | = | 100 | × | 1,749) | ÷ | 11,040) |
| Dec 31, 2011 | 17.15% | = | 100 | × | 1,916) | ÷ | 11,172) |
| Dec 31, 2010 | 15.72% | = | 100 | × | 1,496) | ÷ | 9,516) |
| Dec 31, 2009 | 12.98% | = | 100 | × | 1,034) | ÷ | 7,969) |
| Dec 31, 2008 | 16.10% | = | 100 | × | 1,716) | ÷ | 10,661) |
| Dec 31, 2007 | 15.52% | = | 100 | × | 1,464) | ÷ | 9,432) |
| Dec 31, 2006 | 15.74% | = | 100 | × | 1,481) | ÷ | 9,407) |
| Dec 31, 2005 | 15.02% | = | 100 | × | 1,281) | ÷ | 8,527) |
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 profitability of Norfolk Southern Corp. from 2005 to 2021 is characterized by a long period of relative stability followed by a significant structural shift in net profit margins beginning in 2017.
- Revenue and Income Trajectory
- Railway operating revenues demonstrated a general upward trend, growing from 8,527 million US dollars in 2005 to 11,142 million US dollars by 2021. This growth was punctuated by cyclical contractions, most notably in 2009 and 2020. Net income mirrored this growth trajectory but exhibited higher volatility, particularly in the latter part of the period analyzed.
- Historical Margin Stability (2005–2016)
- For the first decade of the observed period, the net profit margin remained consistently within a tight range, primarily between 14.80% and 17.21%. A notable exception occurred in 2009, where the margin declined to 12.98%, representing the lowest profitability point in the dataset, coinciding with a significant drop in operating revenues.
- Analysis of the 2017 Anomaly
- The fiscal year 2017 represents a significant outlier in the financial data. The net profit margin spiked to 51.22%, driven by a surge in net income to 5,404 million US dollars, despite revenues remaining consistent with previous years. This suggests the influence of a substantial non-operating gain or a one-time accounting adjustment rather than an increase in core operational efficiency.
- Post-2017 Profitability Baseline (2018–2021)
- Following the 2017 peak, the net profit margin did not return to its pre-2017 levels of 15-17%. Instead, a new, higher baseline was established, with margins fluctuating between 20.56% and 26.97%. By 2021, the net profit margin reached 26.97%, indicating a permanent improvement in the conversion of revenue to net income compared to the 2005–2016 era.
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Comparison to Competitors
Norfolk Southern Corp., net profit margin, 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 | 26.97% | 6.23% | -2.84% | 29.92% | -7.97% | 13.25% |
| Dec 31, 2020 | 20.56% | 1.86% | -60.76% | 27.38% | -46.04% | 1.59% |
| Dec 31, 2019 | 24.10% | 0.77% | -60.13% | 27.27% | 6.96% | 5.99% |
| Dec 31, 2018 | 23.27% | 6.99% | — | 26.13% | 5.15% | 6.67% |
| Dec 31, 2017 | 51.22% | 4.97% | — | 50.43% | 5.65% | 7.45% |
| Dec 31, 2016 | 16.87% | 3.61% | — | 21.23% | 6.19% | 5.63% |
| Dec 31, 2015 | 14.80% | 2.21% | — | 21.88% | 19.39% | 8.30% |
| Dec 31, 2014 | 17.21% | 4.60% | — | 21.59% | 2.91% | 5.21% |
| Dec 31, 2013 | 16.99% | 3.52% | — | 19.98% | 1.49% | 7.89% |
| Dec 31, 2012 | 15.84% | 4.76% | — | 18.84% | -1.95% | 1.49% |
| Dec 31, 2011 | 17.15% | 3.69% | — | 16.83% | 2.26% | 7.16% |
| Dec 31, 2010 | 15.72% | 3.41% | — | 16.39% | 1.09% | 7.04% |
| Dec 31, 2009 | 12.98% | 0.28% | — | 13.42% | -3.99% | 4.75% |
| Dec 31, 2008 | 16.10% | 2.96% | — | 13.01% | -26.48% | 5.83% |
| Dec 31, 2007 | 15.52% | 5.72% | — | 11.39% | 2.00% | 0.77% |
| Dec 31, 2006 | 15.74% | 5.59% | — | 10.31% | 118.28% | 8.84% |
| Dec 31, 2005 | 15.02% | 4.93% | — | 7.56% | -121.85% | 9.09% |
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., net profit margin, long-term trends, comparison to sector (transportation)
| Norfolk Southern Corp. | Transportation | |
|---|---|---|
| Dec 31, 2021 | 26.97% | 9.05% |
| Dec 31, 2020 | 20.56% | -2.93% |
| Dec 31, 2019 | 24.10% | 2.42% |
| Dec 31, 2018 | 23.27% | 8.67% |
| Dec 31, 2017 | 51.22% | 11.21% |
| Dec 31, 2016 | 16.87% | 7.00% |
| Dec 31, 2015 | 14.80% | 10.88% |
| Dec 31, 2014 | 17.21% | 6.86% |
| Dec 31, 2013 | 16.99% | 6.81% |
| Dec 31, 2012 | 15.84% | 3.91% |
| Dec 31, 2011 | 17.15% | 6.30% |
| Dec 31, 2010 | 15.72% | 6.19% |
| Dec 31, 2009 | 12.98% | 3.14% |
| Dec 31, 2008 | 16.10% | 0.88% |
| Dec 31, 2007 | 15.52% | 3.84% |
| Dec 31, 2006 | 15.74% | 26.57% |
| Dec 31, 2005 | 15.02% | -14.41% |
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., net profit margin, long-term trends, comparison to industry (industrials)
| Norfolk Southern Corp. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 26.97% | 5.85% |
| Dec 31, 2020 | 20.56% | 0.09% |
| Dec 31, 2019 | 24.10% | 4.11% |
| Dec 31, 2018 | 23.27% | 4.75% |
| Dec 31, 2017 | 51.22% | 5.79% |
| Dec 31, 2016 | 16.87% | 7.43% |
| Dec 31, 2015 | 14.80% | 6.48% |
| Dec 31, 2014 | 17.21% | 8.76% |
| Dec 31, 2013 | 16.99% | 8.23% |
| Dec 31, 2012 | 15.84% | 7.39% |
| Dec 31, 2011 | 17.15% | 8.26% |
| Dec 31, 2010 | 15.72% | 7.48% |
| Dec 31, 2009 | 12.98% | 5.76% |
| Dec 31, 2008 | 16.10% | 7.27% |
| Dec 31, 2007 | 15.52% | 9.56% |
| Dec 31, 2006 | 15.74% | 14.87% |
| Dec 31, 2005 | 15.02% | 3.55% |
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).