Canadian National Railway Company
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Canadian National Railway Financial Snapshot
Company Operating Performance
Fast Facts The company reported revenue of US$9,119 million
during the fiscal year 2011 (2011). The company's
Headquarters Address
935 de La Gauchetiere St. West, Montreal, revenue grew at a CAGR of 5.43% during 2007–
H3B 2M9,Canada 2011, with an annual growth of 13.21% over 2010. In
2011, the company recorded an operating margin of
Telephone + 1 514 3997091
36.51%, as against 36.45% in 2010.
Fax + 1 514 3993779
Revenue and Margins
Website www.cn.ca
Ticker Symbol, Stock Exchange CNR, Toronto Stock Exchange
Number of Employees 23,610
Fiscal Year End December
Revenue (in US$ million) 9,119
SWOT Analysis Return on Equity
Strengths Weaknesses The company recorded a return on equity (ROE) of
23.01% for the fiscal year 2011, as compared to its
Diversified product handling peers, CSX Corporation (Ticker: CSX), Norfolk
Technical snags and derailments
capabilities Southern Corporation (Ticker: NSC) and Canadian
Pacific Railway Limited (Ticker: CP), which recorded
Strong financial performance Weakening solvency position ROEs of 21.55%, 19.33% and 12.26% respectively.
Furthermore, the company reported an operating
Strong operational network margin of 36.51% in 2011.
Opportunities Threats Return on Equity
Capital investments Competitive pressures
Growing freight transportation industry Increase in crude oil prices
Locomotive acquisition program Regulations
Liquidity Position
The company reported a current ratio of 1.08 in 2011,
as compared to its peers, CSX Corporation, Norfolk
Southern Corporation and Canadian Pacific Railway
Limited, which recorded current ratios of 1.09, 1.03
and 0.71 respectively. As of December 2011, the
company recorded cash and short-term investments
of worth US$102 million, against US$136 million
current debt. The company reported a debt to equity
ratio of 0.62 in 2011 as compared to its peers, CSX
Corporation, Norfolk Southern Corporation and
Canadian Pacific Railway Limited, which recorded
debt to equity ratios of 1.09, 0.76 and 1.03
respectively.
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Canadian National Railway Company - SWOT Profile Page 1
Canadian National Railway Company
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ......................................................................................................................................... 5
1.2 Business Description ....................................................................................................................................... 5
1.3 Major Products and Services ........................................................................................................................... 7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 8
2.2 Key Financial Performance Indicators ............................................................................................................ 11
2.2.1 Revenue and Operating Profit.................................................................................................................... 11
2.2.2 Asset and Liabilities ................................................................................................................................... 12
2.2.3 Net Debt vs. Gearing Ratio ........................................................................................................................ 13
2.2.4 Solvency ................................................................................................................................................... 14
2.2.5 Valuation ................................................................................................................................................... 15
2.3 Competitive Benchmarking ............................................................................................................................ 16
2.3.1 Market Capitalization ................................................................................................................................. 16
2.3.2 Efficiency................................................................................................................................................... 17
2.3.3 Turnover – Inventory and Asset ................................................................................................................. 18
2.3.4 Liquidity..................................................................................................................................................... 19
3 SWOT Analysis ...................................................................................................................................... 20
3.1 SWOT Analysis - Overview ............................................................................................................................ 20
3.2 Strengths ....................................................................................................................................................... 20
3.3 Weaknesses .................................................................................................................................................. 20
3.4 Opportunities ................................................................................................................................................. 21
3.5 Threats .......................................................................................................................................................... 21
4 History .................................................................................................................................................... 22
5 Key Employees ...................................................................................................................................... 24
6 Key Employee Biographies ................................................................................................................... 26
7 Appendix ................................................................................................................................................ 27
7.1 Methodology .................................................................................................................................................. 27
7.2 Ratio Definitions ............................................................................................................................................ 27
7.3 Disclaimer ..................................................................................................................................................... 31
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Canadian National Railway Company - SWOT Profile Page 2
Canadian National Railway Company
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List of Tables
Table 1: Major Products and Services ............................................................................................................................ 7
Table 2: Key Ratios - Annual ........................................................................................................................................... 8
Table 3: Key Ratios - Interim ......................................................................................................................................... 10
Table 4: Key Capital Market Indicators .......................................................................................................................... 10
Table 5: History ...........................................................................................................