Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Norfolk Southern Corp., solvency ratios

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

Norfolk Southern Corp. (NYSE:NSC)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage