Market Cap : 73.49 B | Enterprise Value : 90.25 B | PE Ratio : 35.62 | PB Ratio : 2.71 |
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Canadian Pacific Railway has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.Canadian Pacific Railway's Interest Coverage for the quarter that ended in Jun. 2022 was 5.61. Canadian Pacific Railway's debt to revenue ratio for the quarter that ended in Jun. 2022 was 2.28. As of today, Canadian Pacific Railway's Altman Z-Score is 2.16.
For the Railroads subindustry, Canadian Pacific Railway's Financial Strength, along with its competitors' market caps and Financial Strength 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.
For the Transportation industry and Industrials sector, Canadian Pacific Railway's Financial Strength distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Railway's Financial Strength falls into.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Canadian Pacific Railway's Interest Expense for the months ended in Jun. 2022 was $-125 Mil. Its Operating Income for the months ended in Jun. 2022 was $701 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $14,349 Mil.
Canadian Pacific Railway's Interest Coverage for the quarter that ended in Jun. 2022 is
Interest Coverage | = | -1 | * | Operating Income (Q: Jun. 2022 ) | / | Interest Expense (Q: Jun. 2022 ) |
= | -1 | * | 701.34333020931 | / | -124.96094970322 | |
= | 5.61 |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Canadian Pacific Railway's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is
Debt to Revenue Ratio | = | Total Debt (Q: Jun. 2022 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (1326.1480787254 | + | 14348.641049672) | / | 6879.1002811621 | |
= | 2.28 |
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Canadian Pacific Railway has a Z-score of 2.16, indicating it is in Grey Zones. This implies that Canadian Pacific Railway is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.16 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
Canadian Pacific Railway has the Financial Strength Rank of 5.
Thank you for viewing the detailed overview of Canadian Pacific Railway's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Brooks John Kenneth | officer: SVP & Chief Marketing Officer | 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
Clements James Dominic Luther | officer: VP Planning & Transportation | 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
Foran Mike | officer: VP Network Transportation | 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
Trafton Gordon T. Ii | director | 2632 SUTTON CIRCLE NAPERVILLE IL 60564 |
Peverett Jane L | director | 1489 MARINE DRIVE, SUITE 802 WEST VANCOUVER A1 V7T 1B8 |
Derry John E | officer: Vice-President Human Resources | 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
Johnson Robert Allen | officer: Executive VP Operations | 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
Denham Gillian H | director | C/O CANADIAN PACIFIC RAILWAY LIMITED 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
Fatt William R. | director | 129 ROCHESTER AVENUE TORONTO A6 M4N 1N9 |
Velani Nadeem | officer: Interim VP and CFO | 7550 OGDEN DALE ROAD S. E. CALGARY A0 T2C 4X9 |
Paull Matthew H | director | MCDONALDS CORP 2915 JORIE BLVD OAK BROOK IL 60523 |
Reardon Andrew Fitzpatrick | director | C/O CANADIAN PACIFIC RAILWAY LIMITED 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
Melman Anthony Ronald | director | 150 BLOOR STREET WEST TORONTO A6 M5S 2X9 |
Pitz Laird Joseph | officer: VP & Chief Risk Officer | 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
Edwards Peter John | officer: VP HR & Labour Relations | 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9 |
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