Canadian National Railway Co (TSX:CNR) Inventory Turnover : 3.43 (As of Mar. 2024)

View and export this data going back to 1995. Start your Free Trial

What is Canadian National Railway Co Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Canadian National Railway Co's Cost of Goods Sold for the three months ended in Mar. 2024 was C$2,540 Mil. Canadian National Railway Co's Average Total Inventories for the quarter that ended in Mar. 2024 was C$741 Mil. Canadian National Railway Co's Inventory Turnover for the quarter that ended in Mar. 2024 was 3.43.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Canadian National Railway Co's Days Inventory for the three months ended in Mar. 2024 was 26.62.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Canadian National Railway Co's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.17.

Canadian National Railway Co Inventory Turnover Historical Data

The historical data trend for Canadian National Railway Co's Inventory Turnover 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 Inventory Turnover Chart

Canadian National Railway Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

Get a 7-Day Free Trial

15.12

13.48

14.35

15.16

13.91

Canadian National Railway Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															3.43	3.07	3.08	3.43	3.43

Canadian National Railway Co Inventory Turnover Calculation

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

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	9677	/ (	(692	+	699)	/	2 )
=	9677	/	695.5
=	13.91

Canadian National Railway Co's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	2540	/ (	(699	+	783)	/	2 )
=	2540	/	741
=	3.43

Canadian National Railway Co (TSX:CNR) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Canadian National Railway Co's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	741	/	2540	*	365 / 4
	=	26.62

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Canadian National Railway Co's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	741	/	4249
	=	0.17

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Canadian National Railway Co Inventory Turnover Related Terms

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

Canadian National Railway Co (TSX:CNR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Canadian National Railway Co (TSX:CNR) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

CNI:USA CNI:Mexico CY2:Germany CNIC34:Brazil

Address

935 de La Gauchetiere Street West, Montreal, QC, CAN, H3B 2M9

Website

https://www.cn.ca

Canadian National's railway spans Canada from coast to coast and extends through Chicago to the Gulf of Mexico. In 2022, CN generated roughly CAD 17.1 billion in revenue by hauling intermodal containers (29% of consolidated revenue), petroleum and chemicals (19%), grain and fertilizers (16%), forest products (12%), metals and mining (11%), automotive shipments (5%), and coal (5%). Other items constitute the remaining revenue.