The business behind the dividend
| Measure | NSC | Median | Formula |
|---|---|---|---|
| Return on equity | 18.5% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 13.3% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $2.06bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $2.16bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 35.8% | 15.0% | Operating income ÷ revenue |
| Net margin | 23.6% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.10x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 5.50x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.85x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.52x | 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 | 18.5% | 18.3% | 14.3% | 25.7% | 22.0% | 13.6% | 17.9% | 17.4% | 33.0% | 13.4% | 17.9% |
| Return on capital employed | 13.3% | 12.9% | 9.5% | 17.2% | 16.2% | 11.2% | 14.7% | 15.3% | 13.5% | 13.4% | 13.4% |
| Operating margin | 35.8% | 33.6% | 23.5% | 37.7% | 39.9% | 30.7% | 35.3% | 34.6% | 33.4% | 30.4% | 33.6% |
| Net margin | 23.6% | 21.6% | 15.0% | 25.7% | 27.0% | 20.6% | 24.1% | 23.3% | 51.2% | 16.9% | 23.3% |
| Debt to equity | 1.10x | 1.20x | 1.34x | 1.19x | 1.01x | 0.82x | 0.78x | 0.69x | 0.60x | 0.81x | 0.82x |
| Current ratio | 0.85x | 0.90x | 1.24x | 0.76x | 0.86x | 1.07x | 0.90x | 0.72x | 0.84x | 0.98x | 0.86x |
| Cash conversion | 1.52x | 1.55x | 1.74x | 1.29x | 1.42x | 1.81x | 1.43x | 1.40x | 0.60x | 1.82x | 1.43x |
How it compares in industrials
Among the 74 industrials companies here measured on free cash flow, Norfolk Southern pays out less than 9 of them. The median for that group is 28.1%, against this company’s 56.3%.
Closest on free cash flow
- Honeywell International (HON) 54.9%
- CSX (CSX) 56.8%
- Union Pacific (UNP) 58.8%
- Paccar (PCAR) 61.7%
Same sector and same denominator, so the figures are comparable. All 81 in industrials →