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Canadian National Railway Co Quick Ratio

: 0.55 (As of Jun. 2022)
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The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Canadian National Railway Co's quick ratio for the quarter that ended in Jun. 2022 was 0.55.

Canadian National Railway Co has a quick ratio of 0.55. It indicates that the company cannot currently fully pay back its current liabilities.

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

CNI' s Quick Ratio Range Over the Past 10 Years
Min: 0.44   Med: 0.69   Max: 1.28
Current: 0.55

During the past 13 years, Canadian National Railway Co's highest Quick Ratio was 1.28. The lowest was 0.44. And the median was 0.69.

CNI's Quick Ratio is ranked worse than
87.69% of 926 companies
in the Transportation industry
Industry Median: 1.23 vs CNI: 0.55

Canadian National Railway Co Quick Ratio Historical Data

The historical data trend for Canadian National Railway Co's Quick 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.44 0.62 0.52 0.77 0.91

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
Quick Ratio 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 0.76 1.21 0.91 0.67 0.55

Competitive Comparison

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

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

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



Canadian National Railway Co Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Canadian National Railway Co's Quick Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Quick Ratio (A: Dec. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(2676.5625-460.15625)/2437.5
=0.91

Canadian National Railway Co's Quick Ratio for the quarter that ended in Jun. 2022 is calculated as

Quick Ratio (Q: Jun. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(2619.4939081537-570.91533895658)/3714.4642299281
=0.55

* 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  (NYSE:CNI) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


Canadian National Railway Co Quick Ratio 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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