CSX Current Ratio vs. Working Capital
| CSX Stock | USD 34.01 0.94 2.84% |
Current Ratio | First Reported 2010-12-31 | Previous Quarter 1.04962779 | Current Value 0.82 | Quarterly Volatility 0.37987114 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.31 | 0.3865 |
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| Net Profit Margin | 0.27 | 0.2535 |
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| Operating Profit Margin | 0.4 | 0.3772 |
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| Pretax Profit Margin | 0.35 | 0.3337 |
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| Return On Assets | 0.0908 | 0.0865 |
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| Return On Equity | 0.32 | 0.3063 |
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For CSX profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CSX to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CSX Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CSX's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CSX Corporation over time as well as its relative position and ranking within its peers.
CSX |
CSX's Revenue Breakdown by Earning Segment
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Is CSX's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CSX. If investors know CSX will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CSX listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.05) | Dividend Share 0.45 | Earnings Share 1.88 | Revenue Per Share 7.375 | Quarterly Revenue Growth (0.01) |
The market value of CSX Corporation is measured differently than its book value, which is the value of CSX that is recorded on the company's balance sheet. Investors also form their own opinion of CSX's value that differs from its market value or its book value, called intrinsic value, which is CSX's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CSX's market value can be influenced by many factors that don't directly affect CSX's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CSX's value and its price as these two are different measures arrived at by different means. Investors typically determine if CSX is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CSX's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
CSX Corporation Working Capital vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CSX's current stock value. Our valuation model uses many indicators to compare CSX value to that of its competitors to determine the firm's financial worth. CSX Corporation is rated fourth in current ratio category among related companies. It is rated fourth in working capital category among related companies reporting about 93,023,256 of Working Capital per Current Ratio. At this time, CSX's Current Ratio is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value CSX by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CSX's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CSX's earnings, one of the primary drivers of an investment's value.CSX Working Capital vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
CSX |
| = | 1.72 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
CSX |
| = | 160 M |
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
CSX Working Capital Comparison
CSX is currently under evaluation in working capital category among related companies.
CSX Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CSX, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CSX will eventually generate negative long term returns. The profitability progress is the general direction of CSX's change in net profit over the period of time. It can combine multiple indicators of CSX, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 379 M | 397.9 M | |
| Operating Income | 5.5 B | 5.8 B | |
| Income Before Tax | 4.9 B | 5.1 B | |
| Total Other Income Expense Net | -638 M | -606.1 M | |
| Net Income | 3.7 B | 3.9 B | |
| Income Tax Expense | 1.2 B | 1.2 B | |
| Net Income Applicable To Common Shares | 4.8 B | 5 B | |
| Net Income From Continuing Ops | 3.8 B | 3.1 B | |
| Non Operating Income Net Other | 152.9 M | 160.6 M | |
| Interest Income | 79 M | 69.9 M | |
| Net Interest Income | -762 M | -800.1 M | |
| Change To Netincome | -124.2 M | -130.4 M | |
| Net Income Per Share | 1.85 | 1.94 | |
| Income Quality | 1.49 | 1.42 | |
| Net Income Per E B T | 0.76 | 0.50 |
CSX Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CSX. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CSX position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CSX's important profitability drivers and their relationship over time.
Use CSX in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CSX position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CSX will appreciate offsetting losses from the drop in the long position's value.CSX Pair Trading
CSX Corporation Pair Trading Analysis
The ability to find closely correlated positions to CSX could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CSX when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CSX - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CSX Corporation to buy it.
The correlation of CSX is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CSX moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CSX Corporation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CSX can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your CSX position
In addition to having CSX in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Business Supplies Thematic Idea Now
Business Supplies
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Supplies theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Supplies Theme or any other thematic opportunities.
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Check out Trending Equities. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Complementary Tools for CSX Stock analysis
When running CSX's price analysis, check to measure CSX's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CSX is operating at the current time. Most of CSX's value examination focuses on studying past and present price action to predict the probability of CSX's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CSX's price. Additionally, you may evaluate how the addition of CSX to your portfolios can decrease your overall portfolio volatility.
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To fully project CSX's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CSX Corporation at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CSX's income statement, its balance sheet, and the statement of cash flows.