Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Norfolk Southern Corp., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Norfolk Southern Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Norfolk Southern Corp. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Norfolk Southern Corp. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Norfolk Southern Corp. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Norfolk Southern Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Norfolk Southern Corp. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Inventory Turnover
Norfolk Southern Corp., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of railway operating revenues | 2,525) | 2,222) | 2,678) | 2,817) | 2,254) | |
| Materials and supplies | 218) | 221) | 244) | 207) | 222) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 11.58 | 10.05 | 10.98 | 13.61 | 10.15 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| FedEx Corp. | 143.03 | 121.01 | 126.03 | 124.67 | — | |
| Union Pacific Corp. | 35.11 | 30.62 | 28.91 | — | — | |
| United Parcel Service Inc. | 135.69 | 136.50 | 145.00 | — | — | |
| Inventory Turnover, Sector | ||||||
| Transportation | 110.34 | 97.56 | 95.15 | — | — | |
| Inventory Turnover, Industry | ||||||
| Industrials | 3.88 | 3.63 | 3.97 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Inventory turnover = Cost of railway operating revenues ÷ Materials and supplies
= 2,525 ÷ 218 = 11.58
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Norfolk Southern Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Receivables Turnover
Norfolk Southern Corp., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Railway operating revenues | 11,142) | 9,789) | 11,296) | 11,458) | 10,551) | |
| Accounts receivable, net | 976) | 848) | 920) | 1,009) | 955) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 11.42 | 11.54 | 12.28 | 11.36 | 11.05 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| FedEx Corp. | 6.96 | 6.85 | 7.65 | 7.72 | — | |
| Uber Technologies Inc. | 7.16 | 10.38 | 11.65 | — | — | |
| Union Pacific Corp. | 12.66 | 12.98 | 13.61 | — | — | |
| United Parcel Service Inc. | 7.76 | 7.87 | 7.76 | — | — | |
| Receivables Turnover, Sector | ||||||
| Transportation | 7.66 | 7.88 | 8.36 | — | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 7.53 | 7.37 | 7.61 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Receivables turnover = Railway operating revenues ÷ Accounts receivable, net
= 11,142 ÷ 976 = 11.42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Norfolk Southern Corp. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Payables Turnover
Norfolk Southern Corp., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of railway operating revenues | 2,525) | 2,222) | 2,678) | 2,817) | 2,254) | |
| Accounts payable | 1,351) | 1,016) | 1,428) | 1,505) | 1,401) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 1.87 | 2.19 | 1.88 | 1.87 | 1.61 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| FedEx Corp. | 21.86 | 21.17 | 23.00 | 21.99 | — | |
| Uber Technologies Inc. | 10.87 | 21.93 | 26.50 | — | — | |
| Union Pacific Corp. | 28.99 | 31.92 | 28.98 | — | — | |
| United Parcel Service Inc. | 12.93 | 13.11 | 13.34 | — | — | |
| Payables Turnover, Sector | ||||||
| Transportation | 16.37 | 16.89 | 17.98 | — | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.66 | 7.35 | 7.38 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Payables turnover = Cost of railway operating revenues ÷ Accounts payable
= 2,525 ÷ 1,351 = 1.87
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Norfolk Southern Corp. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Working Capital Turnover
Norfolk Southern Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 2,167) | 2,318) | 2,081) | 1,862) | 2,149) | |
| Less: Current liabilities | 2,521) | 2,160) | 2,300) | 2,591) | 2,545) | |
| Working capital | (354) | 158) | (219) | (729) | (396) | |
| Railway operating revenues | 11,142) | 9,789) | 11,296) | 11,458) | 10,551) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | 61.96 | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| FedEx Corp. | 12.13 | 11.46 | 17.11 | 17.62 | — | |
| Uber Technologies Inc. | — | 3.69 | 1.71 | — | — | |
| Union Pacific Corp. | — | 476.41 | — | — | — | |
| United Parcel Service Inc. | 13.21 | 26.45 | 43.84 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Transportation | 18.55 | 15.01 | 13.65 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 6.77 | 4.43 | 9.88 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Working capital turnover = Railway operating revenues ÷ Working capital
= 11,142 ÷ -354 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Norfolk Southern Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 11.58 | 10.05 | 10.98 | 13.61 | 10.15 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 32 | 36 | 33 | 27 | 36 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| FedEx Corp. | 3 | 3 | 3 | 3 | — | |
| Union Pacific Corp. | 10 | 12 | 13 | — | — | |
| United Parcel Service Inc. | 3 | 3 | 3 | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Transportation | 3 | 4 | 4 | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 94 | 100 | 92 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.58 = 32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Norfolk Southern Corp. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Receivable Collection Period
Norfolk Southern Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 11.42 | 11.54 | 12.28 | 11.36 | 11.05 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 32 | 32 | 30 | 32 | 33 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| FedEx Corp. | 52 | 53 | 48 | 47 | — | |
| Uber Technologies Inc. | 51 | 35 | 31 | — | — | |
| Union Pacific Corp. | 29 | 28 | 27 | — | — | |
| United Parcel Service Inc. | 47 | 46 | 47 | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Transportation | 48 | 46 | 44 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 48 | 49 | 48 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.42 = 32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Norfolk Southern Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 32 | 36 | 33 | 27 | 36 | |
| Average receivable collection period | 32 | 32 | 30 | 32 | 33 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 64 | 68 | 63 | 59 | 69 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| FedEx Corp. | 55 | 56 | 51 | 50 | — | |
| Union Pacific Corp. | 39 | 40 | 40 | — | — | |
| United Parcel Service Inc. | 50 | 49 | 50 | — | — | |
| Operating Cycle, Sector | ||||||
| Transportation | 51 | 50 | 48 | — | — | |
| Operating Cycle, Industry | ||||||
| Industrials | 142 | 149 | 140 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 32 + 32 = 64
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Norfolk Southern Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Average Payables Payment Period
Norfolk Southern Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 1.87 | 2.19 | 1.88 | 1.87 | 1.61 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 195 | 167 | 195 | 195 | 227 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| FedEx Corp. | 17 | 17 | 16 | 17 | — | |
| Uber Technologies Inc. | 34 | 17 | 14 | — | — | |
| Union Pacific Corp. | 13 | 11 | 13 | — | — | |
| United Parcel Service Inc. | 28 | 28 | 27 | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Transportation | 22 | 22 | 20 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 48 | 50 | 49 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.87 = 195
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Norfolk Southern Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 32 | 36 | 33 | 27 | 36 | |
| Average receivable collection period | 32 | 32 | 30 | 32 | 33 | |
| Average payables payment period | 195 | 167 | 195 | 195 | 227 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -131 | -99 | -132 | -136 | -158 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| FedEx Corp. | 38 | 39 | 35 | 33 | — | |
| Union Pacific Corp. | 26 | 29 | 27 | — | — | |
| United Parcel Service Inc. | 22 | 21 | 23 | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Transportation | 29 | 28 | 28 | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 94 | 99 | 91 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 32 + 32 – 195 = -131
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Norfolk Southern Corp. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |