Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Norfolk Southern Corp., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
The analysis of the ratios over the given periods reveals distinct trends in the operational efficiency and asset utilization of the company.
- Net Fixed Asset Turnover
-
This ratio begins data availability from the first quarter of 2018, starting at 0.35 and observing a gradual increase to 0.37 by the end of 2018. From 2019 through 2021, the ratio remains relatively stable around 0.36 to 0.37 in early 2019, before declining steadily through 2020, reaching a low of 0.31 in December 2020. The value then begins to recover throughout 2021, climbing back to 0.36 by the first quarter of 2022. This pattern indicates an initial strengthening in efficiently using fixed assets to generate revenue, followed by a downturn possibly linked to broader economic conditions in 2020, and a subsequent recovery phase into 2022.
- Total Asset Turnover
-
Commencing from the first quarter of 2018 at 0.30, this ratio exhibits a slight increase to 0.32 by the end of 2018, then stabilizes within the 0.30-0.31 range through late 2019. A noticeable decline is evident during 2020, dropping to approximately 0.26 by the end of that year and maintaining that level into early 2021. A gradual improvement follows during 2021, rising through 0.29 by the first quarter of 2022. This trajectory suggests a decrease in overall asset efficiency during 2020, possibly due to market or operational disruptions, with a modest recovery in subsequent periods.
- Equity Turnover
-
Equity turnover starts at 0.64 in the first quarter of 2018 and shows a steady upward trend, reaching 0.76 by the end of 2018 and maintaining a high plateau through 2019. During 2020, a decline occurs, dropping to a low of 0.66 in both June and September quarters. From late 2020 onwards, recovery and growth are evident, with the ratio escalating to 0.85 by the first quarter of 2022. This relatively strong upward trend in equity turnover suggests improved use of shareholders' equity to generate sales, rebounding well from the mid-2020 dip.
Overall, the data demonstrate that both fixed asset and total asset turnovers experienced a downturn in 2020, aligning with a challenging economic period. Equity turnover also declined but showed a more pronounced recovery, surpassing earlier levels by early 2022. These patterns highlight a temporary reduction in asset efficiency followed by a gradual restoration of operational performance and improved equity utilization in the most recent quarters.
Net Fixed Asset Turnover
Norfolk Southern Corp., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Railway operating revenues | 2,915) | 2,852) | 2,852) | 2,799) | 2,639) | 2,573) | 2,506) | 2,085) | 2,625) | 2,690) | 2,841) | 2,925) | 2,840) | 2,896) | 2,947) | 2,898) | 2,717) | 2,669) | 2,670) | 2,637) | 2,575) | |||||||
| Properties less accumulated depreciation | 31,657) | 31,653) | 31,429) | 31,355) | 31,312) | 31,345) | 31,239) | 31,217) | 31,179) | 31,614) | 31,394) | 31,201) | 31,158) | 31,091) | 30,712) | 30,540) | 30,396) | 30,330) | 30,163) | 30,033) | 29,927) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 0.36 | 0.35 | 0.35 | 0.34 | 0.31 | 0.31 | 0.32 | 0.33 | 0.36 | 0.36 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.36 | 0.35 | 0.35 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| FedEx Corp. | 2.37 | 2.35 | 2.25 | 2.16 | 2.09 | 2.06 | 2.09 | 2.13 | 2.20 | 2.29 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Uber Technologies Inc. | 11.55 | 9.42 | 8.33 | 7.21 | 6.14 | 6.14 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Union Pacific Corp. | 0.41 | 0.40 | 0.39 | 0.38 | 0.36 | 0.36 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| United Airlines Holdings Inc. | 0.91 | 0.77 | 0.62 | 0.45 | 0.33 | 0.49 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| United Parcel Service Inc. | 2.94 | 2.91 | 2.87 | 2.83 | 2.76 | 2.62 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Net fixed asset turnover
= (Railway operating revenuesQ1 2022
+ Railway operating revenuesQ4 2021
+ Railway operating revenuesQ3 2021
+ Railway operating revenuesQ2 2021)
÷ Properties less accumulated depreciation
= (2,915 + 2,852 + 2,852 + 2,799)
÷ 31,657 = 0.36
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in operating revenues, asset values, and operational efficiency over the observed periods.
- Railway Operating Revenues
-
Operating revenues showed a generally positive trajectory from March 2017 through March 2022, despite intermittent fluctuations. An initial steady increase was observed from approximately 2,575 million USD in early 2017 to a peak near 2,947 million USD by the third quarter of 2018. Following this, revenues experienced a slight decline and plateau through early 2020, coinciding with a significant dip in the second quarter of 2020, reaching a low of 2,085 million USD. This decrease likely reflects external pressures impacting operations during that period. Subsequently, a recovery trend emerged, with revenues gradually climbing back to approximately 2,915 million USD by the first quarter of 2022, aligning closely with pre-2020 levels.
- Properties Less Accumulated Depreciation
-
The net value of property assets, net of accumulated depreciation, exhibited a consistent upward trend throughout the period, rising from roughly 29,927 million USD at the beginning of 2017 to about 31,657 million USD by the first quarter of 2022. This growth demonstrates ongoing capital investment or asset appreciation, contributing to a strengthened asset base. Minor fluctuations are visible but overall suggest a stable and incremental increase in net property values.
- Net Fixed Asset Turnover Ratio
-
This ratio, available mainly from late 2017 onwards, indicates changes in asset utilization efficiency. Initially stable around 0.35 to 0.37, the turnover ratio declined noticeably in 2020, reaching lows of 0.31 in both the third and fourth quarters. This downturn coincides temporally with the revenue dip, suggesting decreased efficiency in generating sales from fixed assets during that period. Post-2020, the ratio recovers, returning to approximately 0.36 by the first quarter of 2022, reflecting a restoration of operational efficiency nearer to historical levels.
Overall, the data suggests that while the company faced significant operational challenges in 2020, likely linked to broader economic or sector-specific disruptions, it demonstrated resilience with recovery in revenues and operational efficiency in subsequent quarters. The steady growth in property net asset values supports a sustained capital investment strategy during the period analysed.
Total Asset Turnover
Norfolk Southern Corp., total asset turnover calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Railway operating revenues | 2,915) | 2,852) | 2,852) | 2,799) | 2,639) | 2,573) | 2,506) | 2,085) | 2,625) | 2,690) | 2,841) | 2,925) | 2,840) | 2,896) | 2,947) | 2,898) | 2,717) | 2,669) | 2,670) | 2,637) | 2,575) | |||||||
| Total assets | 39,361) | 38,493) | 38,604) | 38,754) | 37,937) | 37,962) | 38,179) | 37,962) | 37,438) | 37,923) | 37,500) | 37,172) | 37,062) | 36,239) | 36,322) | 35,788) | 36,162) | 35,711) | 35,153) | 34,922) | 35,145) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | 0.29 | 0.29 | 0.28 | 0.27 | 0.26 | 0.26 | 0.26 | 0.27 | 0.30 | 0.30 | 0.31 | 0.31 | 0.31 | 0.32 | 0.31 | 0.31 | 0.30 | 0.30 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| FedEx Corp. | 1.06 | 1.01 | 0.95 | 0.92 | 0.92 | 0.94 | 1.00 | 0.99 | 1.02 | 1.28 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Uber Technologies Inc. | 0.65 | 0.45 | 0.40 | 0.35 | 0.31 | 0.33 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Union Pacific Corp. | 0.35 | 0.34 | 0.34 | 0.33 | 0.31 | 0.31 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| United Airlines Holdings Inc. | 0.42 | 0.36 | 0.29 | 0.21 | 0.17 | 0.26 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| United Parcel Service Inc. | 1.41 | 1.40 | 1.44 | 1.43 | 1.41 | 1.36 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Total asset turnover
= (Railway operating revenuesQ1 2022
+ Railway operating revenuesQ4 2021
+ Railway operating revenuesQ3 2021
+ Railway operating revenuesQ2 2021)
÷ Total assets
= (2,915 + 2,852 + 2,852 + 2,799)
÷ 39,361 = 0.29
2 Click competitor name to see calculations.
- Railway Operating Revenues
- The railway operating revenues demonstrate an overall upward trend from March 2017 through March 2022. Beginning at approximately $2,575 million in Q1 2017, revenues increased steadily, peaking near $2,947 million in Q3 2018. Following a slight decline in late 2018 and 2019, there is a notable drop in Q2 2020 to around $2,085 million, likely reflecting external disruptions during that period. Post Q2 2020, revenues recovered progressively, reaching about $2,915 million in Q1 2022, surpassing earlier highs and indicating a strong rebound and growth trajectory.
- Total Assets
- Total assets remained relatively stable, with minor fluctuations over the five-year span. Starting around $35,145 million in early 2017, the asset base increased gradually, reaching a peak near $39,361 million in Q1 2022. Notable increments occurred especially in late 2019 and throughout 2021, suggesting ongoing investments or asset acquisitions. The general stability with moderate growth in total assets indicates maintained asset management and potential capacity expansion.
- Total Asset Turnover
- The total asset turnover ratio, beginning from Q3 2017 data, remained within a narrow range, predominantly between 0.26 and 0.32. The ratio peaked near 0.32 in late 2017, then displayed a gradual decline to approximately 0.26 during the 2020 fiscal year, coinciding with the decrease in revenues. Subsequently, there appears a recovery phase, with the ratio moving upwards toward 0.29 by Q1 2022. These movements suggest fluctuations in the efficiency of asset utilization to generate revenues, with a dip linked to challenging periods and a partial restoration following recovery.
Equity Turnover
Norfolk Southern Corp., equity turnover calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Railway operating revenues | 2,915) | 2,852) | 2,852) | 2,799) | 2,639) | 2,573) | 2,506) | 2,085) | 2,625) | 2,690) | 2,841) | 2,925) | 2,840) | 2,896) | 2,947) | 2,898) | 2,717) | 2,669) | 2,670) | 2,637) | 2,575) | |||||||
| Stockholders’ equity | 13,461) | 13,641) | 13,887) | 14,317) | 14,643) | 14,791) | 14,941) | 14,861) | 14,884) | 15,184) | 15,238) | 15,311) | 15,331) | 15,362) | 15,480) | 16,559) | 16,418) | 16,359) | 12,727) | 12,662) | 12,527) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | 0.85 | 0.82 | 0.78 | 0.73 | 0.67 | 0.66 | 0.66 | 0.69 | 0.74 | 0.74 | 0.75 | 0.76 | 0.76 | 0.75 | 0.73 | 0.66 | 0.65 | 0.64 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| FedEx Corp. | 3.56 | 3.47 | 3.58 | 3.55 | 3.67 | 3.78 | 3.70 | 3.71 | 3.84 | 3.92 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Uber Technologies Inc. | 2.40 | 1.21 | 1.07 | 0.90 | 0.79 | 0.91 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Union Pacific Corp. | 1.90 | 1.54 | 1.52 | 1.44 | 1.19 | 1.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| United Airlines Holdings Inc. | 8.00 | 4.90 | 3.66 | 2.98 | 2.04 | 2.58 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| United Parcel Service Inc. | 6.41 | 6.83 | 7.84 | 8.56 | 12.52 | 128.81 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Equity turnover
= (Railway operating revenuesQ1 2022
+ Railway operating revenuesQ4 2021
+ Railway operating revenuesQ3 2021
+ Railway operating revenuesQ2 2021)
÷ Stockholders’ equity
= (2,915 + 2,852 + 2,852 + 2,799)
÷ 13,461 = 0.85
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends and fluctuations across the reported periods.
- Railway Operating Revenues
- The railway operating revenues display a generally stable pattern with minor fluctuations between quarters. Starting at approximately $2,575 million in March 2017, revenues increased gradually, peaking near $2,947 million in September 2018. Following this peak, revenues experienced a slight decline, falling to around $2,690 million by December 2019. A significant drop is noted in the first half of 2020, with revenues dipping to roughly $2,085 million in June 2020, likely influenced by external factors affecting economic activity. Subsequently, revenues exhibited a steady recovery, rising to $2,915 million by March 2022, surpassing previous highs and indicating a rebound and growth in operating performance.
- Stockholders’ Equity
- Stockholders’ equity shows a declining trend over the reported periods. Initially measured at about $12,527 million in March 2017, it increased to around $16,359 million by December 2017. However, after this peak, equity gradually decreased in successive quarters, dropping to approximately $13,461 million by March 2022. This decline suggests either distributions, share repurchase activities, net losses, or other equity reductions over time that have more than offset any earnings or capital injections.
- Equity Turnover Ratio
- The equity turnover ratio, representing the efficiency in using equity to generate revenues, begins to be reported from September 2017 onward. The ratio shows a consistent upward trend, starting at 0.64 and increasing to 0.85 by March 2022. This steady improvement implies enhanced utilization of the company's equity base, suggesting that revenues have been growing relative to the equity invested. Particularly during periods of declining stockholders’ equity, this increasing ratio indicates improving operational efficiency or higher asset turnover.
In summary, while stockholders’ equity has decreased over time, the company has managed to increase railway operating revenues and improve equity turnover. The temporary dip in revenues in early 2020 aligns with broader economic challenges but has since been overcome, leading to a positive growth trajectory. The simultaneous decline in equity and improvement in equity turnover could reflect strategic financial management aimed at maximizing revenue generation relative to equity.