Stock Analysis on Net

Norfolk Southern Corp. (NYSE:NSC)

This company has been moved to the archive! The financial data has not been updated since April 27, 2022.

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Norfolk Southern Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 11.58 10.05 10.98 13.61 10.15
Receivables turnover 11.42 11.54 12.28 11.36 11.05
Payables turnover 1.87 2.19 1.88 1.87 1.61
Working capital turnover 61.96
Average No. Days
Average inventory processing period 32 36 33 27 36
Add: Average receivable collection period 32 32 30 32 33
Operating cycle 64 68 63 59 69
Less: Average payables payment period 195 167 195 195 227
Cash conversion cycle -131 -99 -132 -136 -158

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

Microsoft Excel
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

Norfolk Southern Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
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

Norfolk Southern Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
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

Norfolk Southern Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
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

Norfolk Southern Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
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

Norfolk Southern Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
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

Norfolk Southern Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
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

Norfolk Southern Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
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

Norfolk Southern Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
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 + 32195 = -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.