“Canadian National Railway” Annual Report 2017 and 2016 a) Discuss each of the ratios for two years and explain their implications for the company by

“Canadian National Railway” Annual Report 2017 and 2016 a) Discuss each of the ratios for two years and explain their implications for the company by using graphs, charts in your analysis. : R
Profit margin=(Net income/Revenue)*100
2017
2016
(5484/13041)*100 3640/12037)*100 fixed asset turnover=net sales/average fixed asset
2017
2016
42.05
30.24
13041
12037/34950
(35439+34950)/2
Return on assets=Net income/Total asset
0.37
5484/37629
3640/37057
0.34
0.15
Total asset turnover-net sales/average total asset
0.10
13041
12037/37057
Return on equity=Net income/Shareholder’s equity
5484/16656
(37629+37057)/2
3640/14841
10
0.35
0.32
0.33
0.25
11
Current Asset=Current asset/current liability
12
Receivable turnover-Net credit sales/average receivable
2190/3793
2107/3008
(36.225*365) (33.436*365)/875
(984+875)/2
13
0.58
0.70
14
14.22
13.95
Quick Ratio=(current asset-inventory)current liability
(2190-424)/3793 (2107-363)/3008
15
16
0.47
0.58
Avg collection period=Avg account receivable/avg credit sales per day
17
(984+875)/36.225
875/33.436
Debt total asset-DTotal debt/total asset
10828/37629
10937/37057
18
27.16
26.17
0.29
0.30
19
20
Inventory turnover=net sales/average inventory
13041
12037/363 Times interest earned=Interest before interest & taxes/Interest
5558/481
5312/480
21
(424+363)/2
11.56
11.07
22
33.14
33.16
23
Fixed charge coverage=income before fixed charges & taxes/fixed charges
5089/964
4927/776
24
Note-for 2016 opening data is not given so its considered as 0 for calculating average.
5.28
6.35
25 : Railroud Statisties Canadian National Railway7
Data in million ($)
2016
2012
Net income
5,484
3,640
Total sales Revenues
13,041
1293又
Total assets
33,629
→ タ3,05又
Stockholdery equity
>14,841
>
16,656 –
A cCounts receivable
> 825
984
->
Ang.
daily credit sales
>36.225
>33.436
Inventory
7363
424
Fixed assets
» 35,439
ラ 34950
Currend assets
>2,190
2,102
Curnent liabilities
→ 3,ヌ88
73,008
Total debt
10,828
→
10,93ス
Ineome before interest
5,558
5,312
and taxes
481
480
Interest
Income befne fixed
5,089
> 492又
Charges and taxes
Fixed Chorges
964
ラヌヌ6