Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Norfolk Southern Corp., profitability ratios
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
| 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
| 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
| 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
| 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
| 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. |