Adjusted Financial Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Norfolk Southern Corp., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Activity Ratio
Total Asset Turnover
Reported	0.29	0.26	0.30	0.32	0.30
Adjusted	0.29	0.26	0.30	0.31	0.29
Liquidity Ratio
Current Ratio
Reported	0.86	1.07	0.90	0.72	0.84
Adjusted	0.86	1.08	0.91	0.72	0.85
Solvency Ratios
Debt to Equity
Reported	1.01	0.86	0.80	0.73	0.60
Adjusted	0.68	0.60	0.58	0.54	0.46
Debt to Capital
Reported	0.50	0.46	0.45	0.42	0.38
Adjusted	0.41	0.38	0.37	0.35	0.31
Financial Leverage
Reported	2.82	2.57	2.50	2.36	2.18
Adjusted	1.85	1.75	1.72	1.69	1.60
Profitability Ratios
Net Profit Margin
Reported	26.97%	20.56%	24.10%	23.27%	51.22%
Adjusted	30.36%	20.93%	27.67%	23.74%	25.39%
Return on Equity (ROE)
Reported	22.03%	13.61%	17.93%	17.35%	33.03%
Adjusted	16.25%	9.43%	14.20%	12.46%	11.81%
Return on Assets (ROA)
Reported	7.81%	5.30%	7.18%	7.36%	15.13%
Adjusted	8.79%	5.40%	8.24%	7.39%	7.40%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Norfolk Southern Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Norfolk Southern Corp. adjusted current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Norfolk Southern Corp. adjusted debt-to-equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Norfolk Southern Corp. adjusted debt-to-capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Norfolk Southern Corp. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Norfolk Southern Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Norfolk Southern Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Norfolk Southern Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Norfolk Southern Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Railway operating revenues	11,142)	9,789)	11,296)	11,458)	10,551)
Total assets	38,493)	37,962)	37,923)	36,239)	35,711)
Activity Ratio
Total asset turnover¹	0.29	0.26	0.30	0.32	0.30
Adjusted
Selected Financial Data (US$ in millions)
Railway operating revenues	11,142)	9,789)	11,296)	11,458)	10,551)
Adjusted total assets²	38,501)	37,968)	37,932)	36,813)	36,218)
Activity Ratio
Adjusted total asset turnover³	0.29	0.26	0.30	0.31	0.29

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
Total asset turnover = Railway operating revenues ÷ Total assets
= 11,142 ÷ 38,493 = 0.29

² Adjusted total assets. See details »

³ 2021 Calculation
Adjusted total asset turnover = Railway operating revenues ÷ Adjusted total assets
= 11,142 ÷ 38,501 = 0.29

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Norfolk Southern Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Current assets	2,167)	2,318)	2,081)	1,862)	2,149)
Current liabilities	2,521)	2,160)	2,300)	2,591)	2,545)
Liquidity Ratio
Current ratio¹	0.86	1.07	0.90	0.72	0.84
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets²	2,175)	2,324)	2,090)	1,869)	2,156)
Current liabilities	2,521)	2,160)	2,300)	2,591)	2,545)
Liquidity Ratio
Adjusted current ratio³	0.86	1.08	0.91	0.72	0.85

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
Current ratio = Current assets ÷ Current liabilities
= 2,167 ÷ 2,521 = 0.86

² Adjusted current assets. See details »

³ 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 2,175 ÷ 2,521 = 0.86

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Norfolk Southern Corp. adjusted current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt	13,840)	12,681)	12,196)	11,145)	9,836)
Stockholders’ equity	13,641)	14,791)	15,184)	15,362)	16,359)
Solvency Ratio
Debt to equity¹	1.01	0.86	0.80	0.73	0.60
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt²	14,253)	13,114)	12,734)	11,712)	10,336)
Adjusted stockholders’ equity³	20,814)	21,719)	22,008)	21,829)	22,690)
Solvency Ratio
Adjusted debt to equity⁴	0.68	0.60	0.58	0.54	0.46

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
Debt to equity = Total debt ÷ Stockholders’ equity
= 13,840 ÷ 13,641 = 1.01

² Adjusted total debt. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 14,253 ÷ 20,814 = 0.68

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Solvency ratio	Description	The company
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Norfolk Southern Corp. adjusted debt-to-equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt	13,840)	12,681)	12,196)	11,145)	9,836)
Total capital	27,481)	27,472)	27,380)	26,507)	26,195)
Solvency Ratio
Debt to capital¹	0.50	0.46	0.45	0.42	0.38
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt²	14,253)	13,114)	12,734)	11,712)	10,336)
Adjusted total capital³	35,067)	34,833)	34,742)	33,541)	33,026)
Solvency Ratio
Adjusted debt to capital⁴	0.41	0.38	0.37	0.35	0.31

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
Debt to capital = Total debt ÷ Total capital
= 13,840 ÷ 27,481 = 0.50

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 14,253 ÷ 35,067 = 0.41

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Solvency ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Norfolk Southern Corp. adjusted debt-to-capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total assets	38,493)	37,962)	37,923)	36,239)	35,711)
Stockholders’ equity	13,641)	14,791)	15,184)	15,362)	16,359)
Solvency Ratio
Financial leverage¹	2.82	2.57	2.50	2.36	2.18
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets²	38,501)	37,968)	37,932)	36,813)	36,218)
Adjusted stockholders’ equity³	20,814)	21,719)	22,008)	21,829)	22,690)
Solvency Ratio
Adjusted financial leverage⁴	1.85	1.75	1.72	1.69	1.60

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
Financial leverage = Total assets ÷ Stockholders’ equity
= 38,493 ÷ 13,641 = 2.82

² Adjusted total assets. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 38,501 ÷ 20,814 = 1.85

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Norfolk Southern Corp. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income	3,005)	2,013)	2,722)	2,666)	5,404)
Railway operating revenues	11,142)	9,789)	11,296)	11,458)	10,551)
Profitability Ratio
Net profit margin¹	26.97%	20.56%	24.10%	23.27%	51.22%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income²	3,383)	2,049)	3,126)	2,720)	2,679)
Railway operating revenues	11,142)	9,789)	11,296)	11,458)	10,551)
Profitability Ratio
Adjusted net profit margin³	30.36%	20.93%	27.67%	23.74%	25.39%

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
Net profit margin = 100 × Net income ÷ Railway operating revenues
= 100 × 3,005 ÷ 11,142 = 26.97%

² Adjusted net income. See details »

³ 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Railway operating revenues
= 100 × 3,383 ÷ 11,142 = 30.36%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Norfolk Southern Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income	3,005)	2,013)	2,722)	2,666)	5,404)
Stockholders’ equity	13,641)	14,791)	15,184)	15,362)	16,359)
Profitability Ratio
ROE¹	22.03%	13.61%	17.93%	17.35%	33.03%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income²	3,383)	2,049)	3,126)	2,720)	2,679)
Adjusted stockholders’ equity³	20,814)	21,719)	22,008)	21,829)	22,690)
Profitability Ratio
Adjusted ROE⁴	16.25%	9.43%	14.20%	12.46%	11.81%

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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 3,005 ÷ 13,641 = 22.03%

² Adjusted net income. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2021 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 3,383 ÷ 20,814 = 16.25%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Norfolk Southern Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income	3,005)	2,013)	2,722)	2,666)	5,404)
Total assets	38,493)	37,962)	37,923)	36,239)	35,711)
Profitability Ratio
ROA¹	7.81%	5.30%	7.18%	7.36%	15.13%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income²	3,383)	2,049)	3,126)	2,720)	2,679)
Adjusted total assets³	38,501)	37,968)	37,932)	36,813)	36,218)
Profitability Ratio
Adjusted ROA⁴	8.79%	5.40%	8.24%	7.39%	7.40%

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
ROA = 100 × Net income ÷ Total assets
= 100 × 3,005 ÷ 38,493 = 7.81%

² Adjusted net income. See details »

³ Adjusted total assets. See details »

⁴ 2021 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 3,383 ÷ 38,501 = 8.79%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Norfolk Southern Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Norfolk Southern Corp. (NYSE:NSC)

Adjusted Financial Ratios

Adjusted Financial Ratios (Summary)

Norfolk Southern Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)