Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Norfolk Southern Corp., profitability 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).
| 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. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Norfolk Southern Corp. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Norfolk Southern Corp. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Norfolk Southern Corp. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Norfolk Southern Corp. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Gross Profit Margin
Norfolk Southern Corp., gross profit margin 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) | ||||||
| Gross profit | 8,617) | 7,567) | 8,618) | 8,641) | 8,297) | |
| Railway operating revenues | 11,142) | 9,789) | 11,296) | 11,458) | 10,551) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 77.34% | 77.30% | 76.29% | 75.41% | 78.64% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Uber Technologies Inc. | 46.43% | 53.73% | — | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Railway operating revenues
= 100 × 8,617 ÷ 11,142 = 77.34%
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. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Operating Profit Margin
Norfolk Southern Corp., operating profit margin 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) | ||||||
| Income from railway operations | 4,447) | 3,002) | 3,989) | 3,959) | 3,586) | |
| Railway operating revenues | 11,142) | 9,789) | 11,296) | 11,458) | 10,551) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 39.91% | 30.67% | 35.31% | 34.55% | 33.99% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 6.98% | 3.49% | 6.41% | — | — | |
| Uber Technologies Inc. | -21.97% | -43.66% | — | — | — | |
| Union Pacific Corp. | 42.83% | 40.11% | — | — | — | |
| United Airlines Holdings Inc. | -4.15% | -41.41% | 9.94% | — | — | |
| United Parcel Service Inc. | 13.17% | 9.08% | 10.52% | — | — | |
| Operating Profit Margin, Sector | ||||||
| Transportation | 9.44% | 3.36% | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.36% | 3.31% | — | — | — | |
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
Operating profit margin = 100 × Income from railway operations ÷ Railway operating revenues
= 100 × 4,447 ÷ 11,142 = 39.91%
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. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Profit Margin
Norfolk Southern Corp., net profit margin 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) | ||||||
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 6.23% | 1.86% | 0.77% | — | — | |
| Uber Technologies Inc. | -2.84% | -60.76% | — | — | — | |
| Union Pacific Corp. | 29.92% | 27.38% | — | — | — | |
| United Airlines Holdings Inc. | -7.97% | -46.04% | 6.96% | — | — | |
| United Parcel Service Inc. | 13.25% | 1.59% | 5.99% | — | — | |
| Net Profit Margin, Sector | ||||||
| Transportation | 9.05% | -2.93% | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 5.96% | 0.25% | — | — | — | |
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 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. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Equity (ROE)
Norfolk Southern Corp., ROE 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) | ||||||
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| FedEx Corp. | 21.64% | 7.03% | 3.04% | — | — | |
| Uber Technologies Inc. | -3.43% | -55.18% | — | — | — | |
| Union Pacific Corp. | 46.06% | 31.54% | — | — | — | |
| United Airlines Holdings Inc. | -39.05% | -118.61% | 26.09% | — | — | |
| United Parcel Service Inc. | 90.44% | 204.41% | 135.90% | — | — | |
| ROE, Sector | ||||||
| Transportation | 30.78% | -10.82% | — | — | — | |
| ROE, Industry | ||||||
| Industrials | 15.61% | 0.67% | — | — | — | |
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 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. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Assets (ROA)
Norfolk Southern Corp., ROA 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) | ||||||
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| FedEx Corp. | 6.32% | 1.75% | 0.99% | — | — | |
| Uber Technologies Inc. | -1.28% | -20.35% | — | — | — | |
| Union Pacific Corp. | 10.27% | 8.57% | — | — | — | |
| United Airlines Holdings Inc. | -2.88% | -11.87% | 5.72% | — | — | |
| United Parcel Service Inc. | 18.57% | 2.15% | 7.67% | — | — | |
| ROA, Sector | ||||||
| Transportation | 6.88% | -2.01% | — | — | — | |
| ROA, Industry | ||||||
| Industrials | 3.48% | 0.12% | — | — | — | |
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 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. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |