Financial Performance of Norfolk Southern Corporation

Financial Performance of NS
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Financial Performance of NS
In 1982, two railway companies, namely Norfolk and Western and Southern Railway, merged to form Norfolk Southern Corporation (NS). Since its formation, NS had an excellent financial performance history and became the 4th largest Class I railroad company in North America. At that time, it controlled about 20,000 miles of track on the East Coast and eastern states and had 30,456 workers. In 2014, NS's operating revenues were $11.6 billion and generated $2 billion in income (Esty & Mayfield, 2017). However, in late 2014, things were not good for NS since the company started struggling financially. NS profits and revenues were plummeting and its relative cost position deteriorated.
In 2011, NS had an operating revenue of $11,172 million, which slightly decreased to $11,040 million in 2012. In 2013 and 2014, NS operating revenues increased to $11,245 million and $11,624 million, respectively (Esty & Mayfield, 2017). However, the firm’s financial performance deteriorated in 2015, which is why the operating revenues were reduced to $10,863 million. In 2011, NS had an operating income of $3,213 million, $3,124 million in 2012, $3,257 million in 2013, $3,575 million in 2014, and $3,133 in 2015. As can be seen, the operating income dropped by $442 million between 2014 and 2015. The revenue growth rate was -6.6% in 2015 from 3.4% in 2014 (Esty & Mayfield, 2017). Concisely, NS's financial performance was deteriorating in late 2014, which is marked by the decline in its operating revenues, incomes, and revenue growth rate.
When it comes to the total assets of NS, they have been increasing from 2011 to 2015. In particular, NS had $28,538 million in 2011, $32,483 million in 2013, $33,200 million in 2014, and $33,527 mi...