Norfolk Southern is a railway transport provider that mainly deals with transporting coal, agriculture, automobiles, and chemicals.
Major Competitors include CSX Corporation and Union Pacific Corporation.
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Revenue and Net Income both dropped in year 2015:
- Revenue over assessed years: $11,245m, $11,624m, $10,511m
- Net Income over assessed years: $1,910m, $2,000m, $1,556m
Cause for this decline is likely due to recent government restrictions regarding burning of coal.
Historical Ratios for Norfolk Southern remained stable during this assessment, which leads to the conclusion that an outside force is negatively impacting revenues.
The fuel consumption expense on the balance sheet has fallen over this term: $1,613m, $1,574m, $934m
Although revenues are falling, they are projected to steadily rise once again
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Total Assets and Total Liabilities and Stockholder's Equity increased over the assessed years.
- Of these figures, Properties currently account for 84.62% of the company's total assets
- On January 2015, Norfolk Southern announced that they will begin streamligning management processes and selling off un-neneded property. This will free up capital, and allow them to invest in the company's future.
Current Maturities of Long Term Debt have carried over the assessed years: $445m, $2m, $500m
This means that Norfolk Southern has long term debts that are maturing to be paid off. 2014 was simply a very low year for maturing debt.
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Competitor Income Statements and Balance Sheets
Norfolk Southern compares well to the chosen competitors.
Both competitors have endured the same decrease in revenue over the assessed years, which further suggests that external factors are the cause for the decline in coal transport.
Properties also account for the majority of total assets for the competitors as well.
Total Assets and Total Liabilities and Stockholders' Equity also increased over the assessed years for the competitors.
Ratios for the competitors remained stable over the assessed years, with eh exception of Union Pacific's accounts receivable turnover.
Union Pacific had a substancial decrease on this account for year end 2015: 33.69, 33.69, 16.09.
Revenue and Net Income are expected to further fall in 2016, but sanctions on the burning of coal are expected to be loosened in the foreseeable future.
Revitalization of transportation services offered by Norfolk Southern are expected to bring an increase in revenue and net income starting in 2017.