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Canadian National Railway Co (TSX:CNR) Current Ratio : 0.64 (As of Sep. 2024)


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What is Canadian National Railway Co Current Ratio?

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Canadian National Railway Co's current ratio for the quarter that ended in Sep. 2024 was 0.64.

Canadian National Railway Co has a current ratio of 0.64. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Canadian National Railway Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

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

TSX:CNR' s Current Ratio Range Over the Past 10 Years
Min: 0.55   Med: 0.75   Max: 1.39
Current: 0.64

During the past 13 years, Canadian National Railway Co's highest Current Ratio was 1.39. The lowest was 0.55. And the median was 0.75.

TSX:CNR's Current Ratio is ranked worse than
87.81% of 968 companies
in the Transportation industry
Industry Median: 1.41 vs TSX:CNR: 0.64

Canadian National Railway Co Current Ratio Historical Data

The historical data trend for Canadian National Railway Co's Current Ratio 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 Current Ratio Chart

Canadian National Railway Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.66 0.95 1.10 0.84 0.61

Canadian National Railway Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Current Ratio Get a 7-Day Free Trial 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 0.72 0.61 0.60 0.63 0.64

Competitive Comparison of Canadian National Railway Co's Current Ratio

For the Railroads subindustry, Canadian National Railway Co's Current Ratio, along with its competitors' market caps and Current Ratio 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's Current Ratio Distribution in the Transportation Industry

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

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



Canadian National Railway Co Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Canadian National Railway Co's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Current Ratio (A: Dec. 2023 )=Total Current Assets (A: Dec. 2023 )/Total Current Liabilities (A: Dec. 2023 )
=3089/5035
=0.61

Canadian National Railway Co's Current Ratio for the quarter that ended in Sep. 2024 is calculated as

Current Ratio (Q: Sep. 2024 )=Total Current Assets (Q: Sep. 2024 )/Total Current Liabilities (Q: Sep. 2024 )
=3043/4719
=0.64

* 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.


Canadian National Railway Co  (TSX:CNR) Current Ratio Explanation

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.

Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.

The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.


Canadian National Railway Co Current Ratio Related Terms

Thank you for viewing the detailed overview of Canadian National Railway Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Canadian National Railway Co Business Description

Traded in Other Exchanges
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 2023, CN generated CAD 16.8 billion in revenue by hauling intermodal containers (23% of consolidated revenue), petroleum and chemicals (19%), grain and fertilizers (19%), forest products (12%), metals and minerals (12%), automotive shipments (6%), and coal (6%). Other items constitute the remaining revenue.
Executives
Tracy Robinson Director, Senior Officer
Ghislain Houle Senior Officer
Margaret Anne Mckenzie Director
Albert Monaco Director
Shauneen Elizabeth Bruder Director
Olivier Pierre-alix Chouc Senior Officer
Janet Drysdale Senior Officer
Donald K Reardon Senior Officer
Derek Michael Taylor Senior Officer
Michel Letellier Director
David Lund Freeman Director
Dorothea Gisela Klein Senior Officer
Douglas Allan Macdonald Senior Officer
Robert L. Phillips Director
William Henry Iii Gates 10% Security Holder

Canadian National Railway Co Headlines

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