The historical rank and industry rank for Norfolk Southern's Gross Margin % or its related term are showing as below:
NSC'
s Gross Margin % Range Over the Past 10 Years
Min: 32.26 Med: 37.11 Max: 42.58
Current: 35.23
During the past 13 years, the highestGross Margin % of Norfolk Southern was 42.58%. The lowest was 32.26%. And the median was 37.11%.
NSC's Gross Margin % is ranked better than 78.73% of 945
companies
in the Transportation industry
Industry Median: 20.03
vs NSC: 35.23
Norfolk Southern had a gross margin of 33.99% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Norfolk Southern was 0.50% per year.
Norfolk Southern Gross Margin % Historical Data
The historical data trend for Norfolk Southern's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Norfolk Southern's Gross Margin %
For the Railroads subindustry, Norfolk Southern's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Norfolk Southern's Gross Margin % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Norfolk Southern's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Norfolk Southern's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Norfolk Southern had a gross margin of 33.99% for the quarter that ended in Mar. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Norfolk Southern Gross Margin % Related Terms
Thank you for viewing the detailed overview of Norfolk Southern's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Norfolk Southern (Norfolk Southern) Business Description
Class-I railroad Norfolk Southern operates in the Eastern United States. On more than 20,000 miles of track, the firm hauls shipments of coal, intermodal traffic, and a diverse mix of automobile, agriculture, metal, chemical, and forest products.
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