Canadian National Railway Co (Canadian National Railway Co) ROCE %

: 17.50% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Canadian National Railway Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 17.50%.

Canadian National Railway Co ROCE % Historical Data

The historical data trend for Canadian National Railway Co's ROCE % 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.

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Canadian National Railway Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

15.61

12.70

16.00

15.39

15.36

Canadian National Railway Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																17.03	15.26	14.91	13.68	17.50

Canadian National Railway Co ROCE % Calculation

Canadian National Railway Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	5374.18	/	( ( (37292.602 - 2828.119)	+	(39256.112 - 3752.982) )	/ 2 )
	=	5374.18	/	( (34464.483	+	35503.13)	/ 2 )
	=	5374.18	/	34983.8065
	=	15.36 %

Canadian National Railway Co's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	6174.716	/	( ( (38496.046 - 3440.987)	+	(39256.112 - 3752.982) )	/ 2 )
	=	6174.716	/	( ( 35055.059	+	35503.13 )	/ 2 )
	=	6174.716	/	35279.0945
	=	17.50 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Canadian National Railway Co (NYSE:CNI) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Canadian National Railway Co ROCE % Related Terms

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Canadian National Railway Co (Canadian National Railway Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Canadian National Railway Co (NYSE:CNI) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CNI:Mexico CY2:Germany CY2:Germany CNR:Canada 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.