The business behind the dividend
| Measure | CSX | Median | Formula |
|---|---|---|---|
| Return on equity | 22.0% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 14.4% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.67bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.71bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 32.1% | 15.0% | Operating income ÷ revenue |
| Net margin | 20.5% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.38x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 5.36x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.81x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.60x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 22.0% | 27.7% | 30.6% | 33.0% | 28.1% | 21.1% | 28.1% | 26.3% | 37.2% | 14.7% | 27.7% |
| Return on capital employed | 14.4% | 17.3% | 18.4% | 19.6% | 18.9% | 14.8% | 17.8% | 17.8% | 14.0% | 15.1% | 17.3% |
| Operating margin | 32.1% | 36.1% | 37.5% | 40.1% | 44.7% | 41.2% | 41.6% | 39.7% | 32.6% | 30.8% | 37.5% |
| Net margin | 20.5% | 23.9% | 25.0% | 27.7% | 30.2% | 26.1% | 27.9% | 27.0% | 48.0% | 15.5% | 26.1% |
| Debt to equity | 1.38x | 1.43x | 1.50x | 1.44x | 1.20x | 1.24x | 1.35x | 1.17x | 0.80x | 0.94x | 1.24x |
| Current ratio | 0.81x | 0.86x | 1.04x | 1.56x | 1.73x | 2.20x | 1.52x | 1.34x | 1.01x | 1.22x | 1.22x |
| Cash conversion | 1.60x | 1.51x | 1.50x | 1.34x | 1.35x | 1.54x | 1.46x | 1.40x | 0.63x | 1.77x | 1.46x |
How it compares in industrials
Among the 74 industrials companies here measured on free cash flow, CSX pays out less than 8 of them. The median for that group is 28.1%, against this company’s 56.8%.
Closest on free cash flow
- Honeywell International (HON) 54.9%
- Norfolk Southern (NSC) 56.3%
- Union Pacific (UNP) 58.8%
- Paccar (PCAR) 61.7%
Same sector and same denominator, so the figures are comparable. All 81 in industrials →