Norfolk Southern (STU:NFS) ROCE % : 2.38% (As of Mar. 2024)

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What is Norfolk Southern ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Norfolk Southern's annualized ROCE % for the quarter that ended in Mar. 2024 was 2.38%.

Norfolk Southern ROCE % Historical Data

The historical data trend for Norfolk Southern's ROCE % 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.

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Norfolk Southern ROCE % Chart

Norfolk Southern Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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11.96

8.44

13.07

13.79

7.97

Norfolk Southern Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															8.41	6.93	8.66	8.71	2.38

Norfolk Southern ROCE % Calculation

Norfolk Southern's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	2789.514	/	( ( (36707.44 - 2500.656)	+	(38194.884 - 2413.544) )	/ 2 )
	=	2789.514	/	( (34206.784	+	35781.34)	/ 2 )
	=	2789.514	/	34994.062
	=	7.97 %

Norfolk Southern's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	850.08	/	( ( (38194.884 - 2413.544)	+	(38757.76 - 3171.24) )	/ 2 )
	=	850.08	/	( ( 35781.34	+	35586.52 )	/ 2 )
	=	850.08	/	35683.93
	=	2.38 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Norfolk Southern (STU:NFS) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Norfolk Southern ROCE % Related Terms

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Norfolk Southern (STU:NFS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Norfolk Southern Corp (STU:NFS) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NSC:USA NSC:Mexico NFS:Germany NFS:Germany N1SC34:Brazil NSCO:Austria

Address

650 West Peachtree Street NW, Atlanta, GA, USA, 30308

Website

http://www.norfolksouthern.com

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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