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Canadian National Railway Co ROA %

: 10.81% (As of Jun. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Canadian National Railway Co's annualized Net Income for the quarter that ended in Jun. 2022 was $4,139 Mil. Canadian National Railway Co's average Total Assets over the quarter that ended in Jun. 2022 was $38,296 Mil. Therefore, Canadian National Railway Co's annualized ROA % for the quarter that ended in Jun. 2022 was 10.81%.

The historical rank and industry rank for Canadian National Railway Co's ROA % or its related term are showing as below:

CNI' s ROA % Range Over the Past 10 Years
Min: 8.04   Med: 10.21   Max: 14.69
Current: 10.68

During the past 13 years, Canadian National Railway Co's highest ROA % was 14.69%. The lowest was 8.04%. And the median was 10.21%.

CNI's ROA % is ranked better than
80.6% of 928 companies
in the Transportation industry
Industry Median: 3.37 vs CNI: 10.68

Canadian National Railway Co ROA % Historical Data

The historical data trend for Canadian National Railway Co's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Canadian National Railway Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.00 10.71 10.02 8.15 10.49

Canadian National Railway Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.21 14.08 9.91 7.63 10.81

Competitive Comparison

For the Railroads subindustry, Canadian National Railway Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Canadian National Railway Co ROA % Distribution

For the Transportation industry and Industrials sector, Canadian National Railway Co's ROA % distribution charts can be found below:

* The bar in red indicates where Canadian National Railway Co's ROA % falls into.



Canadian National Railway Co ROA % Calculation

Canadian National Railway Co's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=3821.875/( (34978.530720587+37920.3125)/ 2 )
=3821.875/36449.421610294
=10.49 %

Canadian National Railway Co's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=4139.3314589191/( (38101.105845182+38491.877538269)/ 2 )
=4139.3314589191/38296.491691725
=10.81 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2022) net income data. ROA % is displayed in the 30-year financial page.


Canadian National Railway Co  (NYSE:CNI) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2022 )
=Net Income/Total Assets
=4139.3314589191/38296.491691725
=(Net Income / Revenue)*(Revenue / Total Assets)
=(4139.3314589191 / 13570.759137769)*(13570.759137769 / 38296.491691725)
=Net Margin %*Asset Turnover
=30.5 %*0.3544
=10.81 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Canadian National Railway Co ROA % Related Terms

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Canadian National Railway Co Business Description

Canadian National Railway Co logo
Address
935 de La Gauchetiere Street West, Montreal, QC, CAN, H3B 2M9
Canadian National's railway spans Canada from coast to coast and extends through Chicago to the Gulf of Mexico. In 2019, CN delivered almost 6 million carloads over its 19,600 miles of track. CN generated roughly CAD 14 billion in total revenue by hauling intermodal containers (25% of consolidated revenue), petroleum and chemicals (21%), grain and fertilizers (16%), forest products (12%), metals and mining (11%), automotive shipments (6%), and coal (4%). Other items constitute the remaining revenue.

Canadian National Railway Co Headlines

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