The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 27.90% in 2019 to 25.35% in 2023.
The average EBIT Margin for the period under analysis was 41.87%, with 2023 and 2021 performing the worst and best,
In the current year, CSX was able to cover its interest liabilities 1.18 times in the current year- compared to 2019 when it was 0.98 times.
In the current year, CSX was able to cover its interest liabilities 6.87 times in the current year- compared to 2019 when it was 6.74times.
Profitability
The revenue of CSX has fluctuated year on year. The revenue increased by 34% between 2019 and 2020 and a further 18.62% increase was recorded between 2021 and 2022. There also occurred an decrease of 1.32% between 2022 and 2023 (the current period).
CSX’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks poor, as current ratio decreased from 1.52:1 to 1.05:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
CSX is both equity and debt financed.
The debt-to-equity (D/E) ratio has been depreciating year on year. The gearing position of the company appears to be low as it stood at 2.50 in the current year.
