Norfolk Southern (Norfolk Southern) Inventory Turnover : 7.43 (As of Mar. 2024)

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What is Norfolk Southern Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Norfolk Southern's Cost of Goods Sold for the three months ended in Mar. 2024 was $1,983 Mil. Norfolk Southern's Average Total Inventories for the quarter that ended in Mar. 2024 was $267 Mil. Norfolk Southern's Inventory Turnover for the quarter that ended in Mar. 2024 was 7.43.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Norfolk Southern's Days Inventory for the three months ended in Mar. 2024 was 12.29.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Norfolk Southern's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.09.

Norfolk Southern Inventory Turnover Historical Data

The historical data trend for Norfolk Southern's Inventory Turnover 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 Inventory Turnover Chart

Norfolk Southern Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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30.57

25.91

29.15

31.87

29.87

Norfolk Southern Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															7.43	7.01	6.75	7.04	7.43

Norfolk Southern Inventory Turnover Calculation

Norfolk Southern's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	7721	/ (	(253	+	264)	/	2 )
=	7721	/	258.5
=	29.87

Norfolk Southern's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	1983	/ (	(264	+	270)	/	2 )
=	1983	/	267
=	7.43

Norfolk Southern (NYSE:NSC) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Norfolk Southern's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	267	/	1983	*	365 / 4
	=	12.29

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Norfolk Southern's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	267	/	3004
	=	0.09

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Norfolk Southern Inventory Turnover Related Terms

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Norfolk Southern (Norfolk Southern) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Norfolk Southern Corp (NYSE:NSC) » Definitions » Inventory Turnover

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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.

Executives

Phillip S Davidson	director	825 TOWN & COUNTRY LANE, SUITE 1500, HOUSTON TX 77024
Francesca A. Debiase	director	MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Alan H. Shaw	officer: EVP & Chief Marketing Officer	650 W PEACHTREE ST NW, ATLANTA GA 30308
Paul B Duncan	officer: EVP & Chief Operating Officer	650 W PEACHTREE ST NW, ATLANTA GA 30308
James A Squires	officer: Sr. V.P. - Law	650 W PEACHTREE ST NW, ATLANTA GA 30308
Steven F Leer	director	USG CORPORATION, 125 SOUTH FRANKLIN STREET, CHICAGO IL 60606
Nabanita C Nag	officer: SVP and Chief Legal Officer	650 W PEACHTREE ST NW, ATLANTA GA 30308
Claiborne L Moore	officer: Vice President and Controller	650 W PEACHTREE ST NW, ATLANTA GA 30308
Lorri J Kleine	officer: SVP & Chief Legal Officer	650 W PEACHTREE ST NW, ATLANTA GA 30308
Claude E Elkins	officer: EVP & Chief Marketing Officer	650 W. PEACHTREE ST, NW, ATLANTA GA 30308
Allison Clyde H Jr	officer: Vice President and Controller	650 W PEACHTREE ST NW, ATLANTA GA 30308
Ann A Adams	officer: EVP-Chief Transform. Officer	650 W PEACHTREE ST NW, ATLANTA GA 30308
Cynthia M Sanborn	officer: EVP & Chief Operating Officer	650 W PEACHTREE ST NW, ATLANTA GA 30308
Michael Joseph Wheeler	officer: Sr. Vice President Operations	THREE COMMERCIAL PLACE, 13TH FLOOR, NORFOLK VA 23510
Christopher T Jones	director	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042