Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Norfolk Southern Corp. (NYSE:NSC)

Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

Norfolk Southern Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 0.80 0.73 0.60 0.82 0.83
Debt to equity (including operating lease liability) 0.84 0.73 0.60 0.82 0.83
Debt to capital 0.45 0.42 0.38 0.45 0.45
Debt to capital (including operating lease liability) 0.46 0.42 0.38 0.45 0.45
Debt to assets 0.32 0.31 0.28 0.29 0.29
Debt to assets (including operating lease liability) 0.34 0.31 0.28 0.29 0.29
Financial leverage 2.50 2.36 2.18 2.81 2.81
Coverage Ratios
Interest coverage 6.78 7.23 6.69 5.59 5.48
Fixed charge coverage 5.48 5.56 5.35 4.52 4.30

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Norfolk Southern Corp.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Norfolk Southern Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Norfolk Southern Corp.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Norfolk Southern Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Norfolk Southern Corp.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Norfolk Southern Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Norfolk Southern Corp.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Norfolk Southern Corp.’s interest coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Norfolk Southern Corp.’s fixed charge coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Debt to Equity

Norfolk Southern Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt —  —  100  100  200 
Current maturities of long-term debt 316  585  600  550  500 
Long-term debt, excluding current maturities 11,880  10,560  9,136  9,562  9,393 
Total debt 12,196  11,145  9,836  10,212  10,093 
 
Stockholders’ equity 15,184  15,362  16,359  12,409  12,188 
Solvency Ratio
Debt to equity1 0.80 0.73 0.60 0.82 0.83
Benchmarks
Debt to Equity, Competitors2
CSX Corp. 1.37 1.17 0.80 0.97 0.92
FedEx Corp. 0.99 0.85 0.93 1.01 0.48
Union Pacific Corp. 1.39 1.10 0.68 0.75 0.69
United Parcel Service Inc. 7.73 7.53 24.29 39.69 5.80
Debt to Equity, Sector
Industrial Transportation 1.46 1.24 1.07 1.14 0.91
Debt to Equity, Industry
Industrials 1.74 1.71 1.50 1.40 1.38

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 12,196 ÷ 15,184 = 0.80

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Norfolk Southern Corp.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Equity (including Operating Lease Liability)

Norfolk Southern Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt —  —  100  100  200 
Current maturities of long-term debt 316  585  600  550  500 
Long-term debt, excluding current maturities 11,880  10,560  9,136  9,562  9,393 
Total debt 12,196  11,145  9,836  10,212  10,093 
Current operating lease liability 97  —  —  —  — 
Non-current operating lease liability 441  —  —  —  — 
Total debt (including operating lease liability) 12,734  11,145  9,836  10,212  10,093 
 
Stockholders’ equity 15,184  15,362  16,359  12,409  12,188 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.84 0.73 0.60 0.82 0.83
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
CSX Corp. 1.42 1.17 0.80 0.97 0.92
FedEx Corp. 0.99 0.85 0.93 1.01 0.48
Union Pacific Corp. 1.49 1.10 0.68 0.75 0.69
United Parcel Service Inc. 8.62 7.53 24.29 39.69 5.80
Debt to Equity (including Operating Lease Liability), Sector
Industrial Transportation 1.55 1.24 1.07 1.14 0.91
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.84 1.71 1.50 1.40 1.38

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 12,734 ÷ 15,184 = 0.84

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Norfolk Southern Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Capital

Norfolk Southern Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt —  —  100  100  200 
Current maturities of long-term debt 316  585  600  550  500 
Long-term debt, excluding current maturities 11,880  10,560  9,136  9,562  9,393 
Total debt 12,196  11,145  9,836  10,212  10,093 
Stockholders’ equity 15,184  15,362  16,359  12,409  12,188 
Total capital 27,380  26,507  26,195  22,621  22,281 
Solvency Ratio
Debt to capital1 0.45 0.42 0.38 0.45 0.45
Benchmarks
Debt to Capital, Competitors2
CSX Corp. 0.58 0.54 0.45 0.49 0.48
FedEx Corp. 0.50 0.46 0.48 0.50 0.33
Union Pacific Corp. 0.58 0.52 0.41 0.43 0.41
United Parcel Service Inc. 0.89 0.88 0.96 0.98 0.85
Debt to Capital, Sector
Industrial Transportation 0.59 0.55 0.52 0.53 0.48
Debt to Capital, Industry
Industrials 0.64 0.63 0.60 0.58 0.58

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,196 ÷ 27,380 = 0.45

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Norfolk Southern Corp.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Capital (including Operating Lease Liability)

Norfolk Southern Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt —  —  100  100  200 
Current maturities of long-term debt 316  585  600  550  500 
Long-term debt, excluding current maturities 11,880  10,560  9,136  9,562  9,393 
Total debt 12,196  11,145  9,836  10,212  10,093 
Current operating lease liability 97  —  —  —  — 
Non-current operating lease liability 441  —  —  —  — 
Total debt (including operating lease liability) 12,734  11,145  9,836  10,212  10,093 
Stockholders’ equity 15,184  15,362  16,359  12,409  12,188 
Total capital (including operating lease liability) 27,918  26,507  26,195  22,621  22,281 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.46 0.42 0.38 0.45 0.45
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
CSX Corp. 0.59 0.54 0.45 0.49 0.48
FedEx Corp. 0.50 0.46 0.48 0.50 0.33
Union Pacific Corp. 0.60 0.52 0.41 0.43 0.41
United Parcel Service Inc. 0.90 0.88 0.96 0.98 0.85
Debt to Capital (including Operating Lease Liability), Sector
Industrial Transportation 0.61 0.55 0.52 0.53 0.48
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.65 0.63 0.60 0.58 0.58

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 12,734 ÷ 27,918 = 0.46

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Norfolk Southern Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Assets

Norfolk Southern Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt —  —  100  100  200 
Current maturities of long-term debt 316  585  600  550  500 
Long-term debt, excluding current maturities 11,880  10,560  9,136  9,562  9,393 
Total debt 12,196  11,145  9,836  10,212  10,093 
 
Total assets 37,923  36,239  35,711  34,892  34,260 
Solvency Ratio
Debt to assets1 0.32 0.31 0.28 0.29 0.29
Benchmarks
Debt to Assets, Competitors2
CSX Corp. 0.42 0.40 0.33 0.32 0.31
FedEx Corp. 0.32 0.32 0.31 0.30 0.20
Union Pacific Corp. 0.41 0.38 0.29 0.27 0.26
United Parcel Service Inc. 0.44 0.45 0.53 0.40 0.37
Debt to Assets, Sector
Industrial Transportation 0.39 0.37 0.35 0.31 0.28
Debt to Assets, Industry
Industrials 0.32 0.32 0.32 0.30 0.31

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 12,196 ÷ 37,923 = 0.32

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Norfolk Southern Corp.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Assets (including Operating Lease Liability)

Norfolk Southern Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt —  —  100  100  200 
Current maturities of long-term debt 316  585  600  550  500 
Long-term debt, excluding current maturities 11,880  10,560  9,136  9,562  9,393 
Total debt 12,196  11,145  9,836  10,212  10,093 
Current operating lease liability 97  —  —  —  — 
Non-current operating lease liability 441  —  —  —  — 
Total debt (including operating lease liability) 12,734  11,145  9,836  10,212  10,093 
 
Total assets 37,923  36,239  35,711  34,892  34,260 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.34 0.31 0.28 0.29 0.29
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
CSX Corp. 0.44 0.40 0.33 0.32 0.31
FedEx Corp. 0.32 0.32 0.31 0.30 0.20
Union Pacific Corp. 0.44 0.38 0.29 0.27 0.26
United Parcel Service Inc. 0.49 0.45 0.53 0.40 0.37
Debt to Assets (including Operating Lease Liability), Sector
Industrial Transportation 0.41 0.37 0.35 0.31 0.28
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.34 0.32 0.32 0.30 0.31

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 12,734 ÷ 37,923 = 0.34

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Norfolk Southern Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019.

Financial Leverage

Norfolk Southern Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Total assets 37,923  36,239  35,711  34,892  34,260 
Stockholders’ equity 15,184  15,362  16,359  12,409  12,188 
Solvency Ratio
Financial leverage1 2.50 2.36 2.18 2.81 2.81
Benchmarks
Financial Leverage, Competitors2
CSX Corp. 3.23 2.92 2.43 3.03 3.01
FedEx Corp. 3.06 2.70 3.02 3.34 2.47
Union Pacific Corp. 3.40 2.90 2.33 2.80 2.64
United Parcel Service Inc. 17.71 16.56 45.40 99.70 15.51
Financial Leverage, Sector
Industrial Transportation 3.78 3.31 3.06 3.65 3.21
Financial Leverage, Industry
Industrials 5.45 5.30 4.73 4.61 4.41

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 37,923 ÷ 15,184 = 2.50

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Norfolk Southern Corp.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Norfolk Southern Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income 2,722  2,666  5,404  1,668  1,556 
Add: Income tax expense 769  803  (2,276) 914  886 
Add: Interest expense on debt 604  557  550  563  545 
Earnings before interest and tax (EBIT) 4,095  4,026  3,678  3,145  2,987 
Solvency Ratio
Interest coverage1 6.78 7.23 6.69 5.59 5.48
Benchmarks
Interest Coverage, Competitors2
CSX Corp. 6.86 7.74 6.75 5.73 6.77
FedEx Corp. 2.11 8.80 9.94 9.15 7.92
Union Pacific Corp. 8.38 9.90 11.61 10.69 13.31
United Parcel Service Inc. 9.66 10.95 16.78 14.48 22.53
Interest Coverage, Sector
Industrial Transportation 7.02 9.02 10.22 8.81 10.71
Interest Coverage, Industry
Industrials 6.63 6.52 7.49 7.86 10.13

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,095 ÷ 604 = 6.78

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Norfolk Southern Corp.’s interest coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Fixed Charge Coverage

Norfolk Southern Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income 2,722  2,666  5,404  1,668  1,556 
Add: Income tax expense 769  803  (2,276) 914  886 
Add: Interest expense on debt 604  557  550  563  545 
Earnings before interest and tax (EBIT) 4,095  4,026  3,678  3,145  2,987 
Add: Operating lease expense 176  204  169  171  195 
Earnings before fixed charges and tax 4,271  4,230  3,847  3,316  3,182 
 
Interest expense on debt 604  557  550  563  545 
Operating lease expense 176  204  169  171  195 
Fixed charges 780  761  719  734  740 
Solvency Ratio
Fixed charge coverage1 5.48 5.56 5.35 4.52 4.30
Benchmarks
Fixed Charge Coverage, Competitors2
CSX Corp. 6.26 7.10 6.04 5.36 6.14
FedEx Corp. 1.19 2.25 2.38 2.00 1.65
Union Pacific Corp. 6.62 7.11 7.37 6.49 7.32
United Parcel Service Inc. 5.36 4.85 6.69 5.81 8.27
Fixed Charge Coverage, Sector
Industrial Transportation 3.83 4.33 4.60 4.12 4.67
Fixed Charge Coverage, Industry
Industrials 4.24 3.98 4.41 4.63 5.62

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-05), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,271 ÷ 780 = 5.48

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Norfolk Southern Corp.’s fixed charge coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.