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)
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
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 | — | — | |
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 | 3.87 | 3.61 | 3.94 | — | — |
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
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 | — | — | |
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 | 7.60 | 7.49 | 7.67 | — | — |
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
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
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 | — | — | |
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 | 7.74 | 7.44 | 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
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
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 | — | — | |
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 | 6.90 | 4.47 | 10.00 | — | — |
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
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 | — | — | |
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 | 101 | 93 | — | — |
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
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 | — | — | |
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
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 | — | — | |
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 | 150 | 141 | — | — |
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
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 | — | — | |
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 | 47 | 49 | 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
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 | — | — | |
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 | 95 | 101 | 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
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. |