Final accounting project

Canadian National Railway Company

Annual report: TSX_CNR.TO_2020.pdf (annualreports.com)

Canadian National Railway Company: In terms of income and infrastructure, the Canadian National

Railway Company is the largest railway service in Canada. The Canadian National Railway Company has

32,831 kilometres of track. In 2019, the Canadian National Railway Corporation's total revenue was

CA$14.912 billion, with a net income of CA$4.216 billion. Currently, the organization employs over

24,000 people. C.N. is a true backbone of the economy whose team of approximately 24,000 railroaders

transports more than C$250 billion worth of goods annually for a wide range of business sectors, ranging

from resource products to manufactured products to consumer goods, across a rail network of

approximately 20,000 route-miles spanning Canada and mid-America. Canadian National Railway

Company, together with its subsidiaries, engages in the rail and related transportation business. Its

portfolio of goods includes petroleum and chemicals, grain and fertilizers, coal, metals and minerals,

forest products, intermodal, and automotive products serving exporters, importers, retailers, farmers, and

manufacturers. The company operates a network of 19,500 route miles of track spanning Canada and the

United States. It also provides vessels and docks, transporting and distribution, automotive logistics,

freight forwarding and transportation management services. The company was founded in 1919 and is

headquartered in Montreal, Canada.

Analysis of accounting ratios of Canadian National railway company.

Current Ratio/Working Capital Ratio: This ratio explains the relationship between a business's current

assets and current liabilities. The formula for calculating the ratio. The latest Current Ratio of the

Canadian National Railway Company is 0.9475, which is an outstanding and sound current ratio.
Debt Equity Ratio: The debt-to-equity ratio indicates the connection between long-term loans and the

cash held by shareholders. It shows the percentage

of money gained through long-term borrowings

compared to shareholder money. This ratio is used to

determine if a company long-term financial practices

are solid. Canadian National Railway Company's

current debt-equity ratio is 0.6568. A 2:1

debt-to-equity ratio is good. This is the Canadian

National Railway Company's debt-equity ratio.

Return on Investment, or R.O.I., is a metric that

measures a company's entire profitability. It is

computed by dividing the profit earned by the

amount of capital used to earn it. This ratio is also

known as 'Rate of Return' or 'Return on Capital

Employed.' It is commonly expressed as a

percentage. Canadian National Railway Company's

current return on investment is 11.2554. The Canadian National Railway Company's investment is

spectacular and successful.

Financial Comparison with Canadian Pacific Railway:

C.N.'s Trailing 12 - month revenue and Free cash flow were nearly $15 Billion and about $2 Billion,

Respectively. Whereas Canadian Pacific Railways trailing 12 - month revenue and free cash flow were

more than $7.6 Billion and $1.1 Billion, respectively. CN Rail Trades at a price-to-earnings ratio of

approximately 18.7, Whereas CP Rail trades at roughly 17.6. Investing in the Share of Canadian National

Railways company is a good option for earning stable and Good returns. The company has a sound

financial position and has a good track record of Announcing a good amount of dividends. Indian
National Railways Company has a dividend track record for increasing its dividend for 23 consecutive

years with a 15 - year dividend growth rate of 17.3%.

The historic success of the Canadian national railway and a forecast of its future:

In the 1950s and 1960s, C.N. was modernized under the dynamic presidency of Donald Gordon, who

rationalized (or reorganized) 80 subsidiary companies down to 30. Gordon also directed the conversion to

diesel locomotives and electronic signalling and moved the head office to Montréal. By the end of the

1970s, C.N. had merged its own system of telecommunications with that of Canadian Pacific (creating

CNCP Telecommunications) and had completed

construction of the C.N. Tower in Toronto. C.N. Real

Estate redeveloped company-owned downtown

properties in several cities, including the Toronto

Convention Centre Complex. In 1981, C.N. Exploration

was formed to develop CN-owned mineral rights in

western Canada. Canadian National amalgamated all its

trucking subsidiaries on the highway into CNX/CN

Trucking; their trailers carried over long distances on

piggy-back rail cars. According to the Canadian railway

historical and current success, the Canadian railway will

continue its success in the future and will become

stronger financially and economically due to their strategic plan that will change the future of

transportation in Canada.

The conclusion would be that it is safe and encouraging investing in the company, as according to its

financial statements, it ensures profitability and high return rate, the administration and the system is also

stable, so there is no worry about any crisis that would happen to the company. According to its liquidity

and profitability rates, the company is also financially stable, so I think it is a good idea to invest in it.
Resources:

National Railway, Canada. Investors, 2018, www.cn.ca/en/investors/.

report, annual. “Canadian National Railway Company.” AnnualReports.com, 2020,

www.annualreports.com/Company/canadian-national-railway-company.

report, annual. “Canadian Pacific Railway Limited.” AnnualReports.com, 2020,

www.annualreports.com/Company/Canadian-Pacific-Railway.

National, Railway. “Reports and Archives.” Reports and Archives, 2016,

www.cn.ca/en/investors/reports-and-archives.
Pacific Railway, Canadian. “Financials.” Canadian Pacific - Financials, 2019,

investor.cpr.ca/financials/default.aspx.

National Railway, Canada. “Financial Results.” CN, 2019, www.cn.ca/en/investors/financial-results.

Railway, Canada N. “2020 CN Annual Report.” CN IPO25 Commemorative Brochure, 2020,

epub.cn.ca/avqf/tuqc/#p=1.