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 Pacific Railway's quick ratio for the quarter that ended in Jun. 2022 was 0.42.
Canadian Pacific Railway has a quick ratio of 0.42. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Canadian Pacific Railway's Quick Ratio or its related term are showing as below:
CP'
s Quick Ratio Range Over the Past 10 Years
Min: 0.33 Med: 0.68 Max: 1.47
Current: 0.42
During the past 13 years, Canadian Pacific Railway's highest Quick Ratio was 1.47. The lowest was 0.33. And the median was 0.68.
CP's Quick Ratio is ranked worse than 91.58% of 926
companies
in the Transportation industry
Industry Median: 1.23
vs CP: 0.42
Canadian Pacific Railway Quick Ratio Historical Data
The historical data trend for Canadian Pacific Railway'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 Pacific Railway Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Quick Ratio
0.57
0.48
0.45
0.42
0.35
Canadian Pacific Railway Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Quick Ratio
0.63
0.33
0.35
0.36
0.42
Competitive Comparison
For the Railroads subindustry, Canadian Pacific Railway'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 Pacific Railway Quick Ratio Distribution
For the Transportation industry and Industrials sector, Canadian Pacific Railway's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Railway's Quick Ratio falls into.
Canadian Pacific Railway 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 Pacific Railway's Quick Ratio for the fiscal year that ended in Dec. 2021 is calculated as
* 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 Pacific Railway (NYSE:CP) 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 Pacific Railway Quick Ratio Related Terms
Thank you for viewing the detailed overview of Canadian Pacific Railway's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Canadian Pacific is a CAD 8 billion Class-1 railroads operating on more than 12,500 miles of track across most of Canada and into parts of the Midwestern and Northeastern United States. It is the second-smallest Class I railroad by revenue and route miles. In 2021, CP hauled shipments of grain (22% of freight revenue), intermodal containers (22%), energy products (like crude and frac sand), chemicals, and plastics (20%) coal (8%), fertilizer and potash (10%), automotive products (5%), and a diverse mix of other merchandise.
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