Total Asset Turnover
since 2005
Calculation
Norfolk Southern Corp., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Railway operating revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.29 | = | 11,142) | ÷ | 38,493) |
| Dec 31, 2020 | 0.26 | = | 9,789) | ÷ | 37,962) |
| Dec 31, 2019 | 0.30 | = | 11,296) | ÷ | 37,923) |
| Dec 31, 2018 | 0.32 | = | 11,458) | ÷ | 36,239) |
| Dec 31, 2017 | 0.30 | = | 10,551) | ÷ | 35,711) |
| Dec 31, 2016 | 0.28 | = | 9,888) | ÷ | 34,892) |
| Dec 31, 2015 | 0.31 | = | 10,511) | ÷ | 34,260) |
| Dec 31, 2014 | 0.35 | = | 11,624) | ÷ | 33,241) |
| Dec 31, 2013 | 0.35 | = | 11,245) | ÷ | 32,483) |
| Dec 31, 2012 | 0.36 | = | 11,040) | ÷ | 30,342) |
| Dec 31, 2011 | 0.39 | = | 11,172) | ÷ | 28,538) |
| Dec 31, 2010 | 0.34 | = | 9,516) | ÷ | 28,199) |
| Dec 31, 2009 | 0.29 | = | 7,969) | ÷ | 27,369) |
| Dec 31, 2008 | 0.41 | = | 10,661) | ÷ | 26,297) |
| Dec 31, 2007 | 0.36 | = | 9,432) | ÷ | 26,144) |
| Dec 31, 2006 | 0.36 | = | 9,407) | ÷ | 26,028) |
| Dec 31, 2005 | 0.33 | = | 8,527) | ÷ | 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
The analysis of total asset turnover from 2005 to 2021 reveals a period of initial growth in asset efficiency followed by a long-term decline. While the ratio fluctuated in the first half of the period, the latter decade is characterized by a gradual erosion of the company's ability to generate revenue relative to its asset base.
- Revenue Volatility and Impact
- Railway operating revenues exhibited significant volatility, with notable contractions in 2009 and 2020. The sharp decline in 2009, where revenues fell to 7,969 million US$, directly resulted in the asset turnover ratio dropping to 0.29. A similar pattern occurred in 2020, when revenues decreased to 9,789 million US$, driving the asset turnover to its lowest point in the analyzed period at 0.26.
- Asset Base Expansion
- Total assets demonstrated a consistent and steady upward trajectory, growing from 25,861 million US$ in 2005 to 38,493 million US$ by 2021. This represents a sustained increase in the capital invested in the business, regardless of the fluctuations in operating revenue.
- Asset Turnover Efficiency Trends
- The total asset turnover ratio peaked at 0.41 in 2008 and reached a secondary peak of 0.39 in 2011. However, from 2012 onward, a general downward trend is observed. This decline indicates that the growth in total assets has outpaced the growth in railway operating revenues. By 2021, the ratio stood at 0.29, returning to levels similar to those seen during the 2009 downturn, despite the asset base being significantly larger.
- Operational Correlation
- The divergence between the linear growth of total assets and the non-linear, volatile nature of revenues suggests a decrease in overall asset productivity over the long term. The inability to maintain revenue growth commensurate with asset expansion has resulted in a diminished efficiency ratio over the final ten years of the period.
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Comparison to Competitors
Norfolk Southern Corp., total asset turnover, 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 | 0.29 | 1.01 | 0.45 | 0.34 | 0.36 | 1.40 |
| Dec 31, 2020 | 0.26 | 0.94 | 0.33 | 0.31 | 0.26 | 1.36 |
| Dec 31, 2019 | 0.30 | 1.28 | 0.45 | 0.35 | 0.82 | 1.28 |
| Dec 31, 2018 | 0.32 | 1.25 | — | 0.39 | 0.92 | 1.44 |
| Dec 31, 2017 | 0.30 | 1.24 | — | 0.37 | 0.89 | 1.45 |
| Dec 31, 2016 | 0.28 | 1.09 | — | 0.36 | 0.91 | 1.51 |
| Dec 31, 2015 | 0.31 | 1.28 | — | 0.40 | 0.93 | 1.52 |
| Dec 31, 2014 | 0.35 | 1.38 | — | 0.46 | 1.04 | 1.64 |
| Dec 31, 2013 | 0.35 | 1.32 | — | 0.44 | 1.04 | 1.53 |
| Dec 31, 2012 | 0.36 | 1.43 | — | 0.44 | 0.99 | 1.39 |
| Dec 31, 2011 | 0.39 | 1.44 | — | 0.43 | 0.98 | 1.53 |
| Dec 31, 2010 | 0.34 | 1.39 | — | 0.39 | 0.59 | 1.47 |
| Dec 31, 2009 | 0.29 | 1.46 | — | 0.33 | 0.87 | 1.42 |
| Dec 31, 2008 | 0.41 | 1.48 | — | 0.45 | 1.04 | 1.62 |
| Dec 31, 2007 | 0.36 | 1.47 | — | 0.43 | 0.83 | 1.27 |
| Dec 31, 2006 | 0.36 | 1.42 | — | 0.43 | 0.76 | 1.43 |
| Dec 31, 2005 | 0.33 | 1.44 | — | 0.38 | 0.90 | 1.21 |
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., total asset turnover, long-term trends, comparison to sector (transportation)
| Norfolk Southern Corp. | Transportation | |
|---|---|---|
| Dec 31, 2021 | 0.29 | 0.76 |
| Dec 31, 2020 | 0.26 | 0.69 |
| Dec 31, 2019 | 0.30 | 0.86 |
| Dec 31, 2018 | 0.32 | 0.98 |
| Dec 31, 2017 | 0.30 | 0.95 |
| Dec 31, 2016 | 0.28 | 0.92 |
| Dec 31, 2015 | 0.31 | 0.97 |
| Dec 31, 2014 | 0.35 | 1.05 |
| Dec 31, 2013 | 0.35 | 1.02 |
| Dec 31, 2012 | 0.36 | 1.01 |
| Dec 31, 2011 | 0.39 | 1.03 |
| Dec 31, 2010 | 0.34 | 0.88 |
| Dec 31, 2009 | 0.29 | 0.95 |
| Dec 31, 2008 | 0.41 | 1.09 |
| Dec 31, 2007 | 0.36 | 0.97 |
| Dec 31, 2006 | 0.36 | 0.97 |
| Dec 31, 2005 | 0.33 | 0.93 |
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., total asset turnover, long-term trends, comparison to industry (industrials)
| Norfolk Southern Corp. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 0.29 | 0.58 |
| Dec 31, 2020 | 0.26 | 0.50 |
| Dec 31, 2019 | 0.30 | 0.62 |
| Dec 31, 2018 | 0.32 | 0.67 |
| Dec 31, 2017 | 0.30 | 0.62 |
| Dec 31, 2016 | 0.28 | 0.61 |
| Dec 31, 2015 | 0.31 | 0.54 |
| Dec 31, 2014 | 0.35 | 0.49 |
| Dec 31, 2013 | 0.35 | 0.47 |
| Dec 31, 2012 | 0.36 | 0.46 |
| Dec 31, 2011 | 0.39 | 0.45 |
| Dec 31, 2010 | 0.34 | 0.41 |
| Dec 31, 2009 | 0.29 | 0.39 |
| Dec 31, 2008 | 0.41 | 0.43 |
| Dec 31, 2007 | 0.36 | 0.41 |
| Dec 31, 2006 | 0.36 | 0.43 |
| Dec 31, 2005 | 0.33 | 0.40 |
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).