Operating Profit Margin
since 2005
Calculation
Norfolk Southern Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from railway operations1 | ÷ | Railway operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 39.91% | = | 100 | × | 4,447) | ÷ | 11,142) |
| Dec 31, 2020 | 30.67% | = | 100 | × | 3,002) | ÷ | 9,789) |
| Dec 31, 2019 | 35.31% | = | 100 | × | 3,989) | ÷ | 11,296) |
| Dec 31, 2018 | 34.55% | = | 100 | × | 3,959) | ÷ | 11,458) |
| Dec 31, 2017 | 33.99% | = | 100 | × | 3,586) | ÷ | 10,551) |
| Dec 31, 2016 | 31.09% | = | 100 | × | 3,074) | ÷ | 9,888) |
| Dec 31, 2015 | 27.44% | = | 100 | × | 2,884) | ÷ | 10,511) |
| Dec 31, 2014 | 30.76% | = | 100 | × | 3,575) | ÷ | 11,624) |
| Dec 31, 2013 | 28.96% | = | 100 | × | 3,257) | ÷ | 11,245) |
| Dec 31, 2012 | 28.30% | = | 100 | × | 3,124) | ÷ | 11,040) |
| Dec 31, 2011 | 28.76% | = | 100 | × | 3,213) | ÷ | 11,172) |
| Dec 31, 2010 | 28.12% | = | 100 | × | 2,676) | ÷ | 9,516) |
| Dec 31, 2009 | 24.62% | = | 100 | × | 1,962) | ÷ | 7,969) |
| Dec 31, 2008 | 28.93% | = | 100 | × | 3,084) | ÷ | 10,661) |
| Dec 31, 2007 | 27.41% | = | 100 | × | 2,585) | ÷ | 9,432) |
| Dec 31, 2006 | 27.18% | = | 100 | × | 2,557) | ÷ | 9,407) |
| Dec 31, 2005 | 24.83% | = | 100 | × | 2,117) | ÷ | 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 operating profit margin exhibited a general upward trajectory from 2005 to 2021, increasing from 24.83% to 39.91%. This long-term trend indicates a systemic improvement in the ability to convert railway operating revenues into operating income, characterized by periods of steady growth punctuated by short-term cyclical contractions.
- Early Period Volatility (2005–2009)
- Margins initially grew from 24.83% in 2005 to a peak of 28.93% in 2008. This growth was interrupted in 2009, where the margin declined to 24.62%, coinciding with a substantial reduction in railway operating revenues, which fell from $10,661 million in 2008 to $7,969 million in 2009.
- Recovery and Stabilization (2010–2015)
- A recovery phase began in 2010, with margins stabilizing between 27% and 31%. The operating profit margin reached 30.76% in 2014, supported by the highest recorded revenue in the first decade of the period ($11,624 million). A brief contraction to 27.44% occurred in 2015, reflecting a decrease in both revenue and operating income.
- Accelerated Margin Expansion (2016–2019)
- A period of consistent and consecutive year-over-year margin expansion was observed between 2016 and 2019. The margin rose from 31.09% to 35.31%, suggesting an increase in operational efficiency as income growth began to outpace revenue growth during this interval.
- Recent Performance and Peak (2020–2021)
- In 2020, the operating profit margin retracted to 30.67%, mirroring a decline in railway operating revenues to $9,789 million. This was followed by a significant surge in 2021, where the margin reached a period high of 39.91%, driven by a sharp increase in income from railway operations to $4,447 million.
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Comparison to Competitors
Norfolk Southern Corp., operating 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 | 39.91% | 6.98% | -21.97% | 42.83% | -4.15% | 13.17% |
| Dec 31, 2020 | 30.67% | 3.49% | -43.66% | 40.11% | -41.41% | 9.08% |
| Dec 31, 2019 | 35.31% | 6.41% | -60.76% | 39.40% | 9.94% | 10.52% |
| Dec 31, 2018 | 34.55% | 7.44% | — | 37.30% | 7.97% | 9.77% |
| Dec 31, 2017 | 33.99% | 8.35% | — | 37.95% | 9.27% | 11.43% |
| Dec 31, 2016 | 31.09% | 6.11% | — | 36.47% | 11.87% | 8.98% |
| Dec 31, 2015 | 27.44% | 3.93% | — | 36.91% | 13.64% | 13.14% |
| Dec 31, 2014 | 30.76% | 7.56% | — | 36.49% | 6.10% | 8.53% |
| Dec 31, 2013 | 28.96% | 5.76% | — | 33.90% | 3.26% | 12.69% |
| Dec 31, 2012 | 28.30% | 7.46% | — | 32.23% | 0.10% | 2.48% |
| Dec 31, 2011 | 28.76% | 6.05% | — | 29.27% | 4.91% | 11.45% |
| Dec 31, 2010 | 28.12% | 5.75% | — | 29.36% | 4.20% | 11.86% |
| Dec 31, 2009 | 24.62% | 2.10% | — | 23.98% | -0.99% | 8.39% |
| Dec 31, 2008 | 28.93% | 5.47% | — | 22.68% | -21.98% | 10.45% |
| Dec 31, 2007 | 27.41% | 9.30% | — | 20.73% | 5.15% | 1.16% |
| Dec 31, 2006 | 27.18% | 9.33% | — | 18.51% | 2.31% | 13.95% |
| Dec 31, 2005 | 24.83% | 8.42% | — | 13.22% | -1.26% | 14.43% |
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).