Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
CSX Corp., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 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).
The solvency profile exhibits a general trend of increasing leverage balanced by a recovery in debt-servicing capacity. While debt ratios fluctuated between 2018 and 2021, there was a notable upward shift in leverage across most metrics by the end of 2022.
- Leverage and Capital Structure
- The debt-to-equity ratio increased from 1.17 in 2018 to 1.43 in 2022, with a similar trajectory observed when operating lease liabilities are included, reaching 1.47. This indicates a higher reliance on debt relative to shareholder equity over the five-year period. Financial leverage followed a similar pattern, rising from 2.92 in 2018 to a peak of 3.32 in 2022, reflecting an increase in the proportion of assets funded by debt.
- Asset and Capital Proportions
- Debt to assets and debt to capital ratios remained relatively stable. The debt-to-assets ratio fluctuated within a narrow range, moving from 0.40 in 2018 to 0.43 in 2022. Similarly, the debt-to-capital ratio showed minimal variance, shifting from 0.54 in 2018 to 0.59 in 2022. These metrics suggest that while absolute debt levels have risen, the overall composition of the balance sheet has remained consistent.
- Debt Service Coverage
- Interest coverage and fixed charge coverage ratios experienced a decline during the first three years, with interest coverage dropping from 7.74 in 2018 to a low of 5.81 in 2020. However, a strong recovery occurred in the subsequent two years, with interest coverage reaching 8.30 and fixed charge coverage reaching 7.36 by December 31, 2022. This recovery indicates an improved ability to meet interest and fixed obligations despite the overall increase in leverage.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Debt to Equity
CSX Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 151) | 181) | 401) | 245) | 18) | |
| Long-term debt, excluding current portion | 17,896) | 16,185) | 16,304) | 15,993) | 14,739) | |
| Total debt | 18,047) | 16,366) | 16,705) | 16,238) | 14,757) | |
| Shareholders’ equity, attributable to CSX | 12,615) | 13,490) | 13,101) | 11,848) | 12,563) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.43 | 1.21 | 1.28 | 1.37 | 1.17 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| FedEx Corp. | 0.81 | 0.86 | — | — | — | |
| Uber Technologies Inc. | 1.32 | 0.66 | — | — | — | |
| Union Pacific Corp. | 2.74 | 2.10 | — | — | — | |
| United Airlines Holdings Inc. | 4.68 | 7.03 | — | — | — | |
| United Parcel Service Inc. | 0.99 | 1.54 | — | — | — | |
| Debt to Equity, Sector | ||||||
| Transportation | 1.62 | 1.63 | — | — | — | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.42 | 1.37 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity, attributable to CSX
= 18,047 ÷ 12,615 = 1.43
2 Click competitor name to see calculations.
The analysis of solvency metrics reveals a general increase in financial leverage between 2018 and 2022. Total debt experienced an overall upward trajectory, while shareholders' equity remained relatively volatile, resulting in a fluctuating debt-to-equity ratio that reached its five-year peak in the final period.
- Total Debt Trends
- Total debt rose from US$ 14,757 million in 2018 to US$ 18,047 million by 2022. The most significant expansion of debt occurred between 2021 and 2022, where obligations increased by approximately US$ 1.68 billion.
- Shareholders' Equity Performance
- Equity exhibited a non-linear trend, decreasing in 2019 to US$ 11,848 million before recovering to a peak of US$ 13,490 million in 2021. A subsequent decline to US$ 12,615 million was recorded in 2022, contributing to the increase in the solvency ratio.
- Debt to Equity Ratio Analysis
- The debt to equity ratio fluctuated throughout the observed period, starting at 1.17 in 2018 and concluding at 1.43 in 2022. A period of relative deleveraging occurred between 2019 and 2021, as the ratio declined from 1.37 to 1.21. However, the sharp increase to 1.43 in 2022 indicates a higher reliance on borrowed capital relative to equity than at any other point in the five-year sequence.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Debt to Equity (including Operating Lease Liability)
CSX Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 151) | 181) | 401) | 245) | 18) | |
| Long-term debt, excluding current portion | 17,896) | 16,185) | 16,304) | 15,993) | 14,739) | |
| Total debt | 18,047) | 16,366) | 16,705) | 16,238) | 14,757) | |
| Current operating lease liabilities (recorded in Other current liabilities) | 69) | 64) | 45) | 57) | —) | |
| Long-term operating lease liability | 488) | 478) | 455) | 493) | —) | |
| Total debt (including operating lease liability) | 18,604) | 16,908) | 17,205) | 16,788) | 14,757) | |
| Shareholders’ equity, attributable to CSX | 12,615) | 13,490) | 13,101) | 11,848) | 12,563) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.47 | 1.25 | 1.31 | 1.42 | 1.17 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 1.49 | 1.51 | — | — | — | |
| Uber Technologies Inc. | 1.58 | 0.79 | — | — | — | |
| Union Pacific Corp. | 2.87 | 2.22 | — | — | — | |
| United Airlines Holdings Inc. | 5.41 | 8.17 | — | — | — | |
| United Parcel Service Inc. | 1.19 | 1.79 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Transportation | 2.03 | 2.02 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.59 | 1.54 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity, attributable to CSX
= 18,604 ÷ 12,615 = 1.47
2 Click competitor name to see calculations.
The solvency profile between 2018 and 2022 indicates a period of volatility in leverage, characterized by an overall increase in the reliance on debt relative to equity by the end of the period.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited a general upward trajectory over the five-year period, rising from 14,757 million US dollars in 2018 to 18,604 million US dollars in 2022. The most significant growth occurred in 2019 and 2022, with a brief period of stabilization and slight reduction observed between 2020 and 2021.
- Shareholders' Equity Fluctuations
- Equity attributable to the company demonstrated inconsistent movement, decreasing in 2019 and 2022 while increasing between 2020 and 2021. The equity balance ended the period at 12,615 million US dollars, which is nearly identical to the 12,563 million US dollars reported in 2018, suggesting a stagnation in net equity growth over the five-year horizon.
- Debt to Equity Ratio Analysis
- The debt to equity ratio experienced notable volatility, starting at 1.17 in 2018 and reaching a five-year peak of 1.47 in 2022. A sharp increase to 1.42 was observed in 2019, which was subsequently mitigated over the next two years as the ratio declined to 1.25 by 2021. The subsequent spike to 1.47 in 2022 represents the highest leverage level in the observed period, resulting from the simultaneous increase in total debt and the contraction of shareholders' equity.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Debt to Capital
CSX Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 151) | 181) | 401) | 245) | 18) | |
| Long-term debt, excluding current portion | 17,896) | 16,185) | 16,304) | 15,993) | 14,739) | |
| Total debt | 18,047) | 16,366) | 16,705) | 16,238) | 14,757) | |
| Shareholders’ equity, attributable to CSX | 12,615) | 13,490) | 13,101) | 11,848) | 12,563) | |
| Total capital | 30,662) | 29,856) | 29,806) | 28,086) | 27,320) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.59 | 0.55 | 0.56 | 0.58 | 0.54 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| FedEx Corp. | 0.45 | 0.46 | — | — | — | |
| Uber Technologies Inc. | 0.57 | 0.40 | — | — | — | |
| Union Pacific Corp. | 0.73 | 0.68 | — | — | — | |
| United Airlines Holdings Inc. | 0.82 | 0.88 | — | — | — | |
| United Parcel Service Inc. | 0.50 | 0.61 | — | — | — | |
| Debt to Capital, Sector | ||||||
| Transportation | 0.62 | 0.62 | — | — | — | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.59 | 0.58 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 18,047 ÷ 30,662 = 0.59
2 Click competitor name to see calculations.
The financial trajectory between December 31, 2018, and December 31, 2022, is characterized by a steady increase in both total debt and total capital, with the debt-to-capital ratio remaining within a narrow range. The overall capital structure demonstrates a consistent reliance on debt to fund operations and growth, with a notable peak in leverage occurring at the end of the analyzed period.
- Total Debt Trends
- An upward trend in total debt is evident, rising from US$ 14,757 million in 2018 to US$ 18,047 million by 2022. While there was a marginal reduction in debt during 2021, the subsequent increase in 2022 represents the most significant single-year growth in liabilities within the five-year window.
- Total Capital Expansion
- Total capital exhibited consistent growth throughout the period, increasing from US$ 27,320 million in 2018 to US$ 30,662 million in 2022. This steady climb suggests a gradual expansion of the company's total funding base, incorporating both debt and equity components.
- Debt to Capital Ratio Analysis
- The debt to capital ratio fluctuated slightly, beginning at 0.54 in 2018 and ending at a five-year high of 0.59 in 2022. A period of relative stabilization occurred between 2020 and 2021, where the ratio dipped slightly from 0.56 to 0.55. The increase to 0.59 in 2022 indicates that debt grew at a faster rate than total capital during the final year, resulting in a higher proportion of debt within the overall capital structure.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Debt to Capital (including Operating Lease Liability)
CSX Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 151) | 181) | 401) | 245) | 18) | |
| Long-term debt, excluding current portion | 17,896) | 16,185) | 16,304) | 15,993) | 14,739) | |
| Total debt | 18,047) | 16,366) | 16,705) | 16,238) | 14,757) | |
| Current operating lease liabilities (recorded in Other current liabilities) | 69) | 64) | 45) | 57) | —) | |
| Long-term operating lease liability | 488) | 478) | 455) | 493) | —) | |
| Total debt (including operating lease liability) | 18,604) | 16,908) | 17,205) | 16,788) | 14,757) | |
| Shareholders’ equity, attributable to CSX | 12,615) | 13,490) | 13,101) | 11,848) | 12,563) | |
| Total capital (including operating lease liability) | 31,219) | 30,398) | 30,306) | 28,636) | 27,320) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.60 | 0.56 | 0.57 | 0.59 | 0.54 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 0.60 | 0.60 | — | — | — | |
| Uber Technologies Inc. | 0.61 | 0.44 | — | — | — | |
| Union Pacific Corp. | 0.74 | 0.69 | — | — | — | |
| United Airlines Holdings Inc. | 0.84 | 0.89 | — | — | — | |
| United Parcel Service Inc. | 0.54 | 0.64 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.67 | 0.67 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.61 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 18,604 ÷ 31,219 = 0.60
2 Click competitor name to see calculations.
The solvency profile from 2018 to 2022 indicates a general increase in financial leverage. Both total debt and total capital experienced growth over the period, with the debt-to-capital ratio exhibiting a fluctuating yet upward trajectory, ultimately reaching its highest point in the final year of the analysis.
- Total Debt Analysis
- Total debt, including operating lease liabilities, rose from US$ 14,757 million in 2018 to US$ 18,604 million in 2022. The trend was characterized by consistent growth through 2020, a marginal contraction in 2021, and a significant increase in 2022, reflecting an overall expansion of the company's debt obligations.
- Total Capital Trends
- Total capital demonstrated steady year-over-year growth, increasing from US$ 27,320 million in 2018 to US$ 31,219 million in 2022. This consistent upward movement suggests a gradual expansion of the company's total funding base over the five-year window.
- Debt to Capital Ratio Interpretation
- The debt to capital ratio climbed from 0.54 in 2018 to 0.60 in 2022. While the ratio experienced a peak of 0.59 in 2019 followed by a two-year period of gradual decline to 0.56 by 2021, the sharp increase in 2022 signals a heightened reliance on debt financing relative to total capital.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Debt to Assets
CSX Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 151) | 181) | 401) | 245) | 18) | |
| Long-term debt, excluding current portion | 17,896) | 16,185) | 16,304) | 15,993) | 14,739) | |
| Total debt | 18,047) | 16,366) | 16,705) | 16,238) | 14,757) | |
| Total assets | 41,912) | 40,531) | 39,793) | 38,257) | 36,729) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.43 | 0.40 | 0.42 | 0.42 | 0.40 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| FedEx Corp. | 0.24 | 0.25 | — | — | — | |
| Uber Technologies Inc. | 0.30 | 0.25 | — | — | — | |
| Union Pacific Corp. | 0.51 | 0.47 | — | — | — | |
| United Airlines Holdings Inc. | 0.48 | 0.52 | — | — | — | |
| United Parcel Service Inc. | 0.28 | 0.32 | — | — | — | |
| Debt to Assets, Sector | ||||||
| Transportation | 0.36 | 0.36 | — | — | — | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.31 | 0.30 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 18,047 ÷ 41,912 = 0.43
2 Click competitor name to see calculations.
An analysis of the solvency position from 2018 to 2022 reveals a period of moderate expansion in both total debt and total assets, with the overall leverage ratio remaining relatively stable.
- Total Debt Trends
- Total debt exhibited an overall upward trajectory, increasing from 14,757 million US$ in 2018 to 18,047 million US$ by the end of 2022. Growth was consistent between 2018 and 2020, followed by a slight contraction in 2021 to 16,366 million US$, before reaching a five-year peak in 2022.
- Total Asset Growth
- Total assets demonstrated steady and uninterrupted growth throughout the period. Assets rose from 36,729 million US$ in 2018 to 41,912 million US$ in 2022, indicating a consistent expansion of the balance sheet.
- Debt to Assets Ratio Interpretation
- The debt to assets ratio remained within a narrow band of 0.40 to 0.43. The ratio increased from 0.40 in 2018 to 0.42 in 2019 and 2020, returned to 0.40 in 2021, and concluded the period at 0.43 in 2022. This pattern suggests that the increase in debt has been largely offset by the growth in the asset base, maintaining a consistent level of solvency.
The data indicates that while the absolute volume of debt has increased, the company has successfully scaled its assets at a commensurate rate, preventing any significant deterioration in its solvency profile over the analyzed five-year window.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Debt to Assets (including Operating Lease Liability)
CSX Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 151) | 181) | 401) | 245) | 18) | |
| Long-term debt, excluding current portion | 17,896) | 16,185) | 16,304) | 15,993) | 14,739) | |
| Total debt | 18,047) | 16,366) | 16,705) | 16,238) | 14,757) | |
| Current operating lease liabilities (recorded in Other current liabilities) | 69) | 64) | 45) | 57) | —) | |
| Long-term operating lease liability | 488) | 478) | 455) | 493) | —) | |
| Total debt (including operating lease liability) | 18,604) | 16,908) | 17,205) | 16,788) | 14,757) | |
| Total assets | 41,912) | 40,531) | 39,793) | 38,257) | 36,729) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.44 | 0.42 | 0.43 | 0.44 | 0.40 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 0.43 | 0.44 | — | — | — | |
| Uber Technologies Inc. | 0.36 | 0.29 | — | — | — | |
| Union Pacific Corp. | 0.53 | 0.50 | — | — | — | |
| United Airlines Holdings Inc. | 0.55 | 0.60 | — | — | — | |
| United Parcel Service Inc. | 0.33 | 0.37 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.45 | 0.45 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.34 | 0.34 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 18,604 ÷ 41,912 = 0.44
2 Click competitor name to see calculations.
The solvency profile over the five-year period from 2018 to 2022 reflects a general expansion of the balance sheet, characterized by simultaneous growth in total assets and debt obligations. The overall leverage position remained relatively stable after an initial increase in 2019.
- Total Debt Obligations
- Total debt, including operating lease liabilities, exhibited an upward trend, rising from US$ 14,757 million in 2018 to US$ 18,604 million in 2022. While a slight contraction occurred in 2021, where debt decreased to US$ 16,908 million from the previous year's US$ 17,205 million, the trajectory resumed an upward climb in 2022, reaching the highest level in the observed period.
- Total Asset Growth
- A consistent year-over-year increase in total assets is observed. The asset base grew from US$ 36,729 million in 2018 to US$ 41,912 million in 2022. This steady growth suggests a continuous expansion of the company's resource base over the five-year duration.
- Debt to Assets Ratio
- The debt-to-assets ratio increased from 0.40 in 2018 to 0.44 in 2019. For the remainder of the period, the ratio remained stable, fluctuating within a narrow range between 0.42 and 0.44. The return to 0.44 in 2022 indicates that the growth in total debt has paced similarly to the growth in total assets, maintaining a consistent solvency proportion.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Financial Leverage
CSX Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 41,912) | 40,531) | 39,793) | 38,257) | 36,729) | |
| Shareholders’ equity, attributable to CSX | 12,615) | 13,490) | 13,101) | 11,848) | 12,563) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.32 | 3.00 | 3.04 | 3.23 | 2.92 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| FedEx Corp. | 3.45 | 3.43 | — | — | — | |
| Uber Technologies Inc. | 4.37 | 2.68 | — | — | — | |
| Union Pacific Corp. | 5.38 | 4.49 | — | — | — | |
| United Airlines Holdings Inc. | 9.77 | 13.56 | — | — | — | |
| United Parcel Service Inc. | 3.59 | 4.87 | — | — | — | |
| Financial Leverage, Sector | ||||||
| Transportation | 4.53 | 4.48 | — | — | — | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.65 | 4.52 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity, attributable to CSX
= 41,912 ÷ 12,615 = 3.32
2 Click competitor name to see calculations.
The financial position between 2018 and 2022 is characterized by a consistent expansion of the total asset base contrasted with fluctuating levels of shareholders' equity, resulting in a variable financial leverage profile.
- Total Asset Expansion
- A steady upward trend is observed in total assets, which grew from US$ 36,729 million in 2018 to US$ 41,912 million by the end of 2022. This represents uninterrupted year-over-year growth, indicating a sustained increase in the company's overall resource base over the five-year period.
- Shareholders' Equity Fluctuations
- Equity attributable to shareholders did not follow a linear trajectory. A decline was noted in 2019, falling to US$ 11,848 million, followed by a recovery period that peaked at US$ 13,490 million in 2021. However, a subsequent decrease occurred in 2022, bringing the equity level to US$ 12,615 million. This lack of steady growth in equity suggests a disconnect between asset acquisition and retained earnings or capital contributions.
- Financial Leverage Analysis
- The financial leverage ratio demonstrated volatility, ending the period at 3.32 in 2022, which is higher than the 2.92 recorded in 2018. After an initial increase to 3.23 in 2019, the ratio moderated for two years, reaching a low of 3.00 in 2021. The sharp increase to 3.32 in 2022 is attributable to the simultaneous increase in total assets and the contraction of shareholders' equity, indicating a heightened reliance on external financing to support the asset base by the end of the observed period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Interest Coverage
CSX Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 4,166) | 3,781) | 2,765) | 3,331) | 3,309) | |
| Add: Income tax expense | 1,248) | 1,170) | 862) | 985) | 995) | |
| Add: Interest expense | 742) | 722) | 754) | 737) | 639) | |
| Earnings before interest and tax (EBIT) | 6,156) | 5,673) | 4,381) | 5,053) | 4,943) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 8.30 | 7.86 | 5.81 | 6.86 | 7.74 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| FedEx Corp. | 8.11 | 9.42 | — | — | — | |
| Uber Technologies Inc. | -15.49 | -1.20 | — | — | — | |
| Union Pacific Corp. | 8.14 | 8.33 | — | — | — | |
| United Airlines Holdings Inc. | 1.59 | -0.62 | — | — | — | |
| United Parcel Service Inc. | 22.06 | 24.91 | — | — | — | |
| Interest Coverage, Sector | ||||||
| Transportation | 5.17 | 6.98 | — | — | — | |
| Interest Coverage, Industry | ||||||
| Industrials | 4.98 | 5.14 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,156 ÷ 742 = 8.30
2 Click competitor name to see calculations.
The financial capacity to service interest obligations demonstrated a U-shaped trajectory between 2018 and 2022, characterized by an initial decline followed by a strong recovery. The interest coverage ratio reached a five-year low in 2020 before climbing to its highest point in 2022, indicating a strengthened solvency position and an increased margin of safety.
- Earnings Before Interest and Tax (EBIT) Trends
- EBIT exhibited a general upward trend over the five-year period, rising from US$ 4,943 million in 2018 to US$ 6,156 million in 2022. A significant contraction occurred in 2020, with earnings dropping to US$ 4,381 million. This decline was followed by a robust recovery in 2021 and 2022, with the final year recording the highest earnings in the analyzed timeframe.
- Interest Expense Dynamics
- Interest expenses remained relatively stable following an initial increase. Costs rose from US$ 639 million in 2018 to US$ 737 million in 2019, after which they fluctuated within a narrow range between US$ 722 million and US$ 754 million through 2022. The consistency of these expenses suggests that the cost of debt remained steady despite variations in operational performance.
- Interest Coverage Ratio Interpretation
- The interest coverage ratio decreased from 7.74 in 2018 to 5.81 in 2020, a result of declining EBIT paired with rising interest costs. However, a sharp reversal occurred in 2021 and 2022, with the ratio reaching 8.30 by the end of 2022. This improvement was driven almost exclusively by the growth in EBIT, as interest expenses remained flat, signifying that the company significantly enhanced its ability to cover its interest obligations through operational profitability.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Fixed Charge Coverage
CSX Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 4,166) | 3,781) | 2,765) | 3,331) | 3,309) | |
| Add: Income tax expense | 1,248) | 1,170) | 862) | 985) | 995) | |
| Add: Interest expense | 742) | 722) | 754) | 737) | 639) | |
| Earnings before interest and tax (EBIT) | 6,156) | 5,673) | 4,381) | 5,053) | 4,943) | |
| Add: Rent expense on operating leases | 109) | 89) | 82) | 84) | 66) | |
| Earnings before fixed charges and tax | 6,265) | 5,762) | 4,463) | 5,137) | 5,009) | |
| Interest expense | 742) | 722) | 754) | 737) | 639) | |
| Rent expense on operating leases | 109) | 89) | 82) | 84) | 66) | |
| Fixed charges | 851) | 811) | 836) | 821) | 705) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 7.36 | 7.10 | 5.34 | 6.26 | 7.10 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| FedEx Corp. | 2.29 | 2.83 | — | — | — | |
| Uber Technologies Inc. | -9.72 | -0.36 | — | — | — | |
| Union Pacific Corp. | 6.64 | 6.81 | — | — | — | |
| United Airlines Holdings Inc. | 1.38 | -0.01 | — | — | — | |
| United Parcel Service Inc. | 11.30 | 12.66 | — | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Transportation | 2.98 | 3.86 | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.30 | 3.44 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,265 ÷ 851 = 7.36
2 Click competitor name to see calculations.
The solvency profile of the organization, specifically regarding its ability to meet fixed obligations, exhibited a period of volatility followed by a strong recovery between 2018 and 2022. The fixed charge coverage ratio remained high throughout the observed period, indicating a consistent capacity to service fixed charges despite fluctuations in earnings.
- Earnings Before Fixed Charges and Tax Trends
- Earnings demonstrated a general upward trajectory, increasing from 5,009 million USD in 2018 to 6,265 million USD in 2022. A notable contraction occurred in 2020, where earnings declined to 4,463 million USD, representing the lowest point in the five-year period. This was followed by a significant recovery in 2021 and continued growth into 2022.
- Fixed Charge Stability
- Fixed charges increased from 705 million USD in 2018 to 851 million USD in 2022. Following an initial rise between 2018 and 2019, these charges remained relatively stable, fluctuating within a tight range between 811 million USD and 851 million USD from 2019 through 2022.
- Fixed Charge Coverage Ratio Dynamics
- The coverage ratio followed a V-shaped pattern, declining from 7.10 in 2018 to a minimum of 5.34 in 2020. This decline was primarily driven by the reduction in earnings during 2020 while fixed charges remained elevated. A subsequent recovery saw the ratio return to 7.10 in 2021 and reach a period high of 7.36 in 2022, suggesting an enhanced margin of safety and improved solvency strength at the end of the analyzed period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?