Return on Assets (ROA)
since 2005
Calculation
Norfolk Southern Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 7.81% | = | 100 | × | 3,005) | ÷ | 38,493) |
| Dec 31, 2020 | 5.30% | = | 100 | × | 2,013) | ÷ | 37,962) |
| Dec 31, 2019 | 7.18% | = | 100 | × | 2,722) | ÷ | 37,923) |
| Dec 31, 2018 | 7.36% | = | 100 | × | 2,666) | ÷ | 36,239) |
| Dec 31, 2017 | 15.13% | = | 100 | × | 5,404) | ÷ | 35,711) |
| Dec 31, 2016 | 4.78% | = | 100 | × | 1,668) | ÷ | 34,892) |
| Dec 31, 2015 | 4.54% | = | 100 | × | 1,556) | ÷ | 34,260) |
| Dec 31, 2014 | 6.02% | = | 100 | × | 2,000) | ÷ | 33,241) |
| Dec 31, 2013 | 5.88% | = | 100 | × | 1,910) | ÷ | 32,483) |
| Dec 31, 2012 | 5.76% | = | 100 | × | 1,749) | ÷ | 30,342) |
| Dec 31, 2011 | 6.71% | = | 100 | × | 1,916) | ÷ | 28,538) |
| Dec 31, 2010 | 5.31% | = | 100 | × | 1,496) | ÷ | 28,199) |
| Dec 31, 2009 | 3.78% | = | 100 | × | 1,034) | ÷ | 27,369) |
| Dec 31, 2008 | 6.53% | = | 100 | × | 1,716) | ÷ | 26,297) |
| Dec 31, 2007 | 5.60% | = | 100 | × | 1,464) | ÷ | 26,144) |
| Dec 31, 2006 | 5.69% | = | 100 | × | 1,481) | ÷ | 26,028) |
| Dec 31, 2005 | 4.95% | = | 100 | × | 1,281) | ÷ | 25,861) |
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
From 2005 to 2021, a consistent expansion of the asset base was observed, paired with variable net income performance that resulted in fluctuating Return on Assets (ROA). Total assets grew steadily from $25.86 billion in 2005 to $38.49 billion in 2021, reflecting a sustained long-term increase in the company's resource scale.
- Net Income and Asset Growth Correlation
- Net income exhibited a general upward trajectory, rising from $1.28 billion in 2005 to $3.01 billion in 2021. While asset growth remained linear and incremental, net income experienced higher volatility, which directly influenced the stability of the ROA percentage over the 16-year period.
- ROA Volatility and Cyclical Dips
- The ROA generally fluctuated between 4.5% and 7.8%, with a significant contraction observed in 2009. During that year, the ROA dropped to 3.78%, correlating with a decrease in net income to $1.03 billion, the lowest point in the observed period.
- Analysis of the 2017 Performance Spike
- A substantial anomaly occurred in 2017, where the ROA surged to 15.13%. This outlier was driven by a sharp increase in net income to $5.40 billion, which significantly exceeded the income levels of both the preceding and subsequent years. This spike represents a temporary peak in asset efficiency that deviates from the historical norm.
- Long-term Efficiency Trends
- Following the 2017 peak, the ROA normalized, ranging from 5.30% in 2020 to 7.81% in 2021. Despite the volatility, the closing ROA in 2021 was higher than the initial 2005 figure of 4.95%, suggesting an overall improvement in the company's ability to generate profit from its assets over the long term.
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Comparison to Competitors
Norfolk Southern Corp., ROA, 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 | 7.81% | 6.32% | -1.28% | 10.27% | -2.88% | 18.57% |
| Dec 31, 2020 | 5.30% | 1.75% | -20.35% | 8.57% | -11.87% | 2.15% |
| Dec 31, 2019 | 7.18% | 0.99% | -26.78% | 9.60% | 5.72% | 7.67% |
| Dec 31, 2018 | 7.36% | 8.74% | — | 10.09% | 4.75% | 9.58% |
| Dec 31, 2017 | 15.13% | 6.17% | — | 18.53% | 5.03% | 10.81% |
| Dec 31, 2016 | 4.78% | 3.95% | — | 7.60% | 5.64% | 8.50% |
| Dec 31, 2015 | 4.54% | 2.83% | — | 8.74% | 17.96% | 12.64% |
| Dec 31, 2014 | 6.02% | 6.34% | — | 9.83% | 3.03% | 8.55% |
| Dec 31, 2013 | 5.88% | 4.65% | — | 8.82% | 1.55% | 12.07% |
| Dec 31, 2012 | 5.76% | 6.80% | — | 8.36% | -1.92% | 2.08% |
| Dec 31, 2011 | 6.71% | 5.30% | — | 7.30% | 2.21% | 10.96% |
| Dec 31, 2010 | 5.31% | 4.75% | — | 6.45% | 0.64% | 10.38% |
| Dec 31, 2009 | 3.78% | 0.40% | — | 4.48% | -3.48% | 6.75% |
| Dec 31, 2008 | 6.53% | 4.39% | — | 5.89% | -27.48% | 9.42% |
| Dec 31, 2007 | 5.60% | 8.40% | — | 4.88% | 1.66% | 0.98% |
| Dec 31, 2006 | 5.69% | 7.96% | — | 4.40% | 90.17% | 12.65% |
| Dec 31, 2005 | 4.95% | 7.10% | — | 2.88% | -109.48% | 10.99% |
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., ROA, long-term trends, comparison to sector (transportation)
| Norfolk Southern Corp. | Transportation | |
|---|---|---|
| Dec 31, 2021 | 7.81% | 6.88% |
| Dec 31, 2020 | 5.30% | -2.01% |
| Dec 31, 2019 | 7.18% | 2.09% |
| Dec 31, 2018 | 7.36% | 8.46% |
| Dec 31, 2017 | 15.13% | 10.69% |
| Dec 31, 2016 | 4.78% | 6.44% |
| Dec 31, 2015 | 4.54% | 10.54% |
| Dec 31, 2014 | 6.02% | 7.21% |
| Dec 31, 2013 | 5.88% | 6.97% |
| Dec 31, 2012 | 5.76% | 3.95% |
| Dec 31, 2011 | 6.71% | 6.47% |
| Dec 31, 2010 | 5.31% | 5.46% |
| Dec 31, 2009 | 3.78% | 2.98% |
| Dec 31, 2008 | 6.53% | 0.96% |
| Dec 31, 2007 | 5.60% | 3.72% |
| Dec 31, 2006 | 5.69% | 25.89% |
| Dec 31, 2005 | 4.95% | -13.41% |
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., ROA, long-term trends, comparison to industry (industrials)
| Norfolk Southern Corp. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 7.81% | 3.40% |
| Dec 31, 2020 | 5.30% | 0.04% |
| Dec 31, 2019 | 7.18% | 2.56% |
| Dec 31, 2018 | 7.36% | 3.16% |
| Dec 31, 2017 | 15.13% | 3.59% |
| Dec 31, 2016 | 4.78% | 4.55% |
| Dec 31, 2015 | 4.54% | 3.52% |
| Dec 31, 2014 | 6.02% | 4.31% |
| Dec 31, 2013 | 5.88% | 3.91% |
| Dec 31, 2012 | 5.76% | 3.38% |
| Dec 31, 2011 | 6.71% | 3.69% |
| Dec 31, 2010 | 5.31% | 3.03% |
| Dec 31, 2009 | 3.78% | 2.24% |
| Dec 31, 2008 | 6.53% | 3.10% |
| Dec 31, 2007 | 5.60% | 3.87% |
| Dec 31, 2006 | 5.69% | 6.41% |
| Dec 31, 2005 | 4.95% | 1.42% |
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).