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

Norfolk Southern Corp. (NYSE:NSC)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Norfolk Southern Corp., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin 76.29% 75.41% 78.64% 77.29% 74.45%
Operating profit margin 35.31% 34.55% 33.99% 31.09% 27.44%
Net profit margin 24.10% 23.27% 51.22% 16.87% 14.80%
Return on Investment
Return on equity (ROE) 17.93% 17.35% 33.03% 13.44% 12.77%
Return on assets (ROA) 7.18% 7.36% 15.13% 4.78% 4.54%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Norfolk Southern Corp.’s gross profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Norfolk Southern Corp.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Norfolk Southern Corp.’s net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Norfolk Southern Corp.’s ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. Norfolk Southern Corp.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

Gross Profit Margin

Norfolk Southern Corp., gross profit margin 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)
Gross profit 8,618  8,641  8,297  7,642  7,825 
Railway operating revenues 11,296  11,458  10,551  9,888  10,511 
Profitability Ratio
Gross profit margin1 76.29% 75.41% 78.64% 77.29% 74.45%
Benchmarks
Gross Profit Margin, Competitors2
CSX Corp. 77.47% 75.40% 73.90% 74.66% 71.95%
FedEx Corp. 61.64% 62.63% 63.50% 65.60% 64.21%
Union Pacific Corp. 79.91% 78.21% 79.97% 81.21% 79.67%
United Parcel Service Inc. 74.21% 72.27% 75.05% 77.31% 77.82%

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
Gross profit margin = 100 × Gross profit ÷ Railway operating revenues
= 100 × 8,618 ÷ 11,296 = 76.29%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Norfolk Southern Corp.’s gross profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Operating Profit Margin

Norfolk Southern Corp., operating profit margin 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)
Income from railway operations 3,989  3,959  3,586  3,074  2,884 
Railway operating revenues 11,296  11,458  10,551  9,888  10,511 
Profitability Ratio
Operating profit margin1 35.31% 34.55% 33.99% 31.09% 27.44%
Benchmarks
Operating Profit Margin, Competitors2
CSX Corp. 41.59% 39.75% 32.14% 30.62% 30.34%
FedEx Corp. 6.41% 7.44% 8.35% 6.11% 3.93%
Union Pacific Corp. 39.40% 37.30% 37.95% 36.47% 36.91%
United Parcel Service Inc. 10.52% 9.77% 11.43% 8.98% 13.14%
Operating Profit Margin, Sector
Industrial Transportation 15.78% 15.90% 16.46% 14.64% 16.04%
Operating Profit Margin, Industry
Industrials 13.24% 14.13% 13.94% 12.94% 13.66%

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
Operating profit margin = 100 × Income from railway operations ÷ Railway operating revenues
= 100 × 3,989 ÷ 11,296 = 35.31%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Norfolk Southern Corp.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

Norfolk Southern Corp., net profit margin 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 
Railway operating revenues 11,296  11,458  10,551  9,888  10,511 
Profitability Ratio
Net profit margin1 24.10% 23.27% 51.22% 16.87% 14.80%
Benchmarks
Net Profit Margin, Competitors2
CSX Corp. 27.90% 27.01% 47.96% 15.48% 16.66%
FedEx Corp. 0.77% 6.99% 4.97% 3.61% 2.21%
Union Pacific Corp. 27.27% 26.13% 50.43% 21.23% 21.88%
United Parcel Service Inc. 5.99% 6.67% 7.45% 5.63% 8.30%
Net Profit Margin, Sector
Industrial Transportation 8.98% 11.59% 17.41% 8.46% 9.46%
Net Profit Margin, Industry
Industrials 7.42% 6.86% 8.15% 8.73% 7.01%

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
Net profit margin = 100 × Net income ÷ Railway operating revenues
= 100 × 2,722 ÷ 11,296 = 24.10%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Norfolk Southern Corp.’s net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Return on Equity (ROE)

Norfolk Southern Corp., ROE 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 
Stockholders’ equity 15,184  15,362  16,359  12,409  12,188 
Profitability Ratio
ROE1 17.93% 17.35% 33.03% 13.44% 12.77%
Benchmarks
ROE, Competitors2
CSX Corp. 28.11% 26.34% 37.21% 14.68% 16.89%
FedEx Corp. 3.04% 23.55% 18.65% 13.20% 7.00%
Union Pacific Corp. 32.65% 29.21% 43.10% 21.24% 23.05%
United Parcel Service Inc. 135.90% 158.59% 491.00% 847.16% 196.11%
ROE, Sector
Industrial Transportation 25.61% 30.10% 40.41% 22.10% 22.89%
ROE, Industry
Industrials 25.37% 24.18% 24.04% 25.10% 17.58%

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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,722 ÷ 15,184 = 17.93%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Norfolk Southern Corp.’s ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Return on Assets (ROA)

Norfolk Southern Corp., ROA 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 
Total assets 37,923  36,239  35,711  34,892  34,260 
Profitability Ratio
ROA1 7.18% 7.36% 15.13% 4.78% 4.54%
Benchmarks
ROA, Competitors2
CSX Corp. 8.71% 9.01% 15.31% 4.84% 5.62%
FedEx Corp. 0.99% 8.74% 6.17% 3.95% 2.83%
Union Pacific Corp. 9.60% 10.09% 18.53% 7.60% 8.74%
United Parcel Service Inc. 7.67% 9.58% 10.81% 8.50% 12.64%
ROA, Sector
Industrial Transportation 6.78% 9.09% 13.21% 6.06% 7.12%
ROA, Industry
Industrials 4.70% 4.60% 5.10% 5.46% 4.00%

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
ROA = 100 × Net income ÷ Total assets
= 100 × 2,722 ÷ 37,923 = 7.18%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Norfolk Southern Corp.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019.