Canadian Retained Earnings vs Long Term Debt Analysis

CP Stock

USD 75.19 1.66 2.26%

Canadian Pacific financial indicator trend analysis is way more than just evaluating Canadian Pacific Railway prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Canadian Pacific Railway is a good investment. Please check the relationship between Canadian Pacific Retained Earnings and its Long Term Debt accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Retained Earnings vs Long Term Debt

Retained Earnings vs Long Term Debt Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Canadian Pacific Railway Retained Earnings account and Long Term Debt. At this time, the significance of the direction appears to have almost identical trend.

The correlation between Canadian Pacific's Retained Earnings and Long Term Debt is 0.9. Overlapping area represents the amount of variation of Retained Earnings that can explain the historical movement of Long Term Debt in the same time period over historical financial statements of Canadian Pacific Railway, assuming nothing else is changed. The correlation between historical values of Canadian Pacific's Retained Earnings and Long Term Debt is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Retained Earnings of Canadian Pacific Railway are associated (or correlated) with its Long Term Debt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Long Term Debt has no effect on the direction of Retained Earnings i.e., Canadian Pacific's Retained Earnings and Long Term Debt go up and down completely randomly.

Correlation Coefficient

0.9

Relationship Direction	Positive
Relationship Strength	Very Strong

View All Relationships

Retained Earnings

The cumulative amount of net income that a company retains for reinvestment in its operations, rather than distributing it to shareholders as dividends.

Long Term Debt

Long-term debt is a debt that Canadian Pacific Railway has held for over one year. Long-term debt appears on Canadian Pacific Railway balance sheet and also includes long-term leases. The most common forms of long term debt are bonds payable, long-term notes payable, mortgage payable, pension liabilities, and lease liabilities. In the corporate world, long-term debt is generally used to fund big-ticket items, such as machinery, buildings, and land. The total of long-term debt reported on Canadian Pacific Railway balance sheet is the sum of the balances of all categories of long-term debt. Debt that is not due within the current year and is often considered to be financing activities that are to be repaid over several years.

Most indicators from Canadian Pacific's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Canadian Pacific Railway current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

At this time, Canadian Pacific's Selling General Administrative is relatively stable compared to the past year. As of 11/22/2024, Sales General And Administrative To Revenue is likely to grow to 0.20, though Tax Provision is likely to grow to (6.8 B).

	2021	2022	2023	2024 (projected)
Gross Profit	4.4B	4.6B	6.4B	3.6B
Total Revenue	8.0B	8.8B	12.6B	13.2B

Gross Profit Total Revenue

Canadian Pacific fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Total Equity	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Short Term Debt	Common Stock	Other Liab
Total Assets		0.98	0.7	0.91	1.0	0.84	0.77	0.98	0.94	0.09	1.0	0.81	0.23	0.75	0.12	0.07	0.99	0.91	0.75	-0.2	0.99	0.92	0.77	0.92	0.99	0.98
Short Long Term Debt Total	0.98		0.71	0.91	0.96	0.86	0.74	1.0	0.94	0.0	0.98	0.73	0.22	0.77	0.15	-0.05	0.99	0.9	0.68	-0.24	1.0	0.92	0.74	0.92	0.95	0.97
Other Current Liab	0.7	0.71		0.76	0.69	0.76	0.38	0.71	0.79	-0.04	0.7	0.71	0.33	0.76	0.38	0.02	0.69	0.75	0.49	-0.43	0.71	0.76	0.76	0.74	0.64	0.64
Total Current Liabilities	0.91	0.91	0.76		0.9	0.96	0.78	0.91	0.93	0.22	0.9	0.85	0.17	0.91	0.12	-0.06	0.87	0.97	0.81	-0.21	0.9	0.98	0.87	0.99	0.85	0.92
Total Stockholder Equity	1.0	0.96	0.69	0.9		0.82	0.77	0.96	0.93	0.14	1.0	0.84	0.23	0.74	0.1	0.12	0.97	0.91	0.77	-0.17	0.98	0.9	0.79	0.91	0.99	0.97
Property Plant And Equipment Net	0.84	0.86	0.76	0.96	0.82		0.8	0.86	0.91	0.07	0.83	0.79	0.25	0.97	0.11	-0.02	0.81	0.95	0.67	-0.18	0.84	0.99	0.88	0.95	0.76	0.85
Current Deferred Revenue	0.77	0.74	0.38	0.78	0.77	0.8		0.74	0.78	0.14	0.76	0.73	0.32	0.78	-0.11	0.27	0.72	0.83	0.57	0.04	0.74	0.82	0.74	0.77	0.72	0.78
Net Debt	0.98	1.0	0.71	0.91	0.96	0.86	0.74		0.93	0.0	0.98	0.72	0.2	0.77	0.14	-0.06	0.99	0.9	0.69	-0.23	1.0	0.92	0.72	0.92	0.95	0.98
Retained Earnings	0.94	0.94	0.79	0.93	0.93	0.91	0.78	0.93		-0.05	0.94	0.85	0.25	0.86	0.1	0.07	0.92	0.91	0.64	-0.17	0.93	0.95	0.82	0.95	0.88	0.93
Accounts Payable	0.09	0.0	-0.04	0.22	0.14	0.07	0.14	0.0	-0.05		0.09	0.3	-0.23	0.09	0.0	0.05	-0.01	0.25	0.66	0.0	0.02	0.1	0.18	0.17	0.16	0.12
Non Current Assets Total	1.0	0.98	0.7	0.9	1.0	0.83	0.76	0.98	0.94	0.09		0.8	0.22	0.75	0.12	0.06	0.99	0.91	0.75	-0.19	0.99	0.91	0.76	0.92	0.99	0.98
Non Currrent Assets Other	0.81	0.73	0.71	0.85	0.84	0.79	0.73	0.72	0.85	0.3	0.8		0.23	0.76	-0.01	0.31	0.72	0.87	0.78	-0.02	0.75	0.83	0.85	0.85	0.8	0.77
Cash And Short Term Investments	0.23	0.22	0.33	0.17	0.23	0.25	0.32	0.2	0.25	-0.23	0.22	0.23		0.26	0.42	0.53	0.22	0.27	-0.02	-0.35	0.22	0.25	0.52	0.17	0.19	0.09
Net Receivables	0.75	0.77	0.76	0.91	0.74	0.97	0.78	0.77	0.86	0.09	0.75	0.76	0.26		0.14	0.02	0.71	0.9	0.59	-0.21	0.75	0.94	0.87	0.89	0.67	0.76
Common Stock Total Equity	0.12	0.15	0.38	0.12	0.1	0.11	-0.11	0.14	0.1	0.0	0.12	-0.01	0.42	0.14		0.0	0.15	0.15	0.08	-0.96	0.14	0.1	0.25	0.11	0.09	0.11
Common Stock Shares Outstanding	0.07	-0.05	0.02	-0.06	0.12	-0.02	0.27	-0.06	0.07	0.05	0.06	0.31	0.53	0.02	0.0		0.0	0.07	-0.02	0.18	-0.01	0.02	0.24	-0.05	0.12	-0.05
Non Current Liabilities Total	0.99	0.99	0.69	0.87	0.97	0.81	0.72	0.99	0.92	-0.01	0.99	0.72	0.22	0.71	0.15	0.0		0.87	0.67	-0.23	1.0	0.88	0.7	0.89	0.96	0.97
Inventory	0.91	0.9	0.75	0.97	0.91	0.95	0.83	0.9	0.91	0.25	0.91	0.87	0.27	0.9	0.15	0.07	0.87		0.82	-0.22	0.9	0.97	0.9	0.95	0.87	0.9
Other Current Assets	0.75	0.68	0.49	0.81	0.77	0.67	0.57	0.69	0.64	0.66	0.75	0.78	-0.02	0.59	0.08	-0.02	0.67	0.82		-0.15	0.7	0.73	0.68	0.8	0.77	0.75
Other Stockholder Equity	-0.2	-0.24	-0.43	-0.21	-0.17	-0.18	0.04	-0.23	-0.17	0.0	-0.19	-0.02	-0.35	-0.21	-0.96	0.18	-0.23	-0.22	-0.15		-0.23	-0.18	-0.28	-0.2	-0.15	-0.2
Total Liab	0.99	1.0	0.71	0.9	0.98	0.84	0.74	1.0	0.93	0.02	0.99	0.75	0.22	0.75	0.14	-0.01	1.0	0.9	0.7	-0.23		0.91	0.73	0.91	0.96	0.98
Property Plant And Equipment Gross	0.92	0.92	0.76	0.98	0.9	0.99	0.82	0.92	0.95	0.1	0.91	0.83	0.25	0.94	0.1	0.02	0.88	0.97	0.73	-0.18	0.91		0.88	0.97	0.86	0.91
Total Current Assets	0.77	0.74	0.76	0.87	0.79	0.88	0.74	0.72	0.82	0.18	0.76	0.85	0.52	0.87	0.25	0.24	0.7	0.9	0.68	-0.28	0.73	0.88		0.85	0.73	0.71
Short Term Debt	0.92	0.92	0.74	0.99	0.91	0.95	0.77	0.92	0.95	0.17	0.92	0.85	0.17	0.89	0.11	-0.05	0.89	0.95	0.8	-0.2	0.91	0.97	0.85		0.87	0.93
Common Stock	0.99	0.95	0.64	0.85	0.99	0.76	0.72	0.95	0.88	0.16	0.99	0.8	0.19	0.67	0.09	0.12	0.96	0.87	0.77	-0.15	0.96	0.86	0.73	0.87		0.95
Other Liab	0.98	0.97	0.64	0.92	0.97	0.85	0.78	0.98	0.93	0.12	0.98	0.77	0.09	0.76	0.11	-0.05	0.97	0.9	0.75	-0.2	0.98	0.91	0.71	0.93	0.95

Click cells to compare fundamentals

Canadian Pacific Account Relationship Matchups

Canadian Pacific fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	22.4B	23.6B	68.2B	73.5B	79.9B	83.9B
Short Long Term Debt Total	8.8B	9.8B	20.1B	19.7B	22.8B	24.0B
Other Current Liab	1.1B	888M	954M	955M	1.5B	1.6B
Total Current Liabilities	2.3B	2.7B	3.2B	3.2B	5.7B	6.0B
Total Stockholder Equity	7.1B	7.3B	33.8B	38.9B	41.5B	43.6B
Property Plant And Equipment Net	19.2B	20.4B	21.2B	22.4B	50.3B	52.8B
Current Deferred Revenue	142M	38M	34M	1.7B	2.0B	2.1B
Net Debt	8.6B	9.6B	20.1B	19.2B	22.4B	23.5B
Retained Earnings	7.6B	8.1B	10.4B	13.2B	16.4B	17.2B
Accounts Payable	453M	401M	432M	503M	680M	574.3M
Non Current Assets Total	21.2B	22.3B	66.8B	71.6B	76.9B	80.7B
Non Currrent Assets Other	451M	438M	419M	3.5B	5.3B	5.6B
Cash And Short Term Investments	133M	147M	69M	451M	464M	282.7M
Net Receivables	805M	637M	594M	758M	1.5B	1.6B
Common Stock Shares Outstanding	696.5M	680M	682.8M	932.9M	933.7M	695.6M
Liabilities And Stockholders Equity	22.4B	23.6B	68.2B	73.5B	79.9B	83.9B
Non Current Liabilities Total	13.0B	13.7B	31.2B	31.4B	31.8B	33.4B
Inventory	182M	208M	235M	284M	400M	420M
Other Current Assets	90M	329M	454M	396M	642M	674.1M
Other Stockholder Equity	48M	55M	66M	78M	88M	83.6M
Total Liab	15.3B	16.3B	34.3B	34.6B	37.5B	39.4B
Property Plant And Equipment Gross	19.5B	20.7B	30.1B	31.9B	60.4B	63.4B
Total Current Assets	1.2B	1.3B	1.4B	1.9B	3.0B	3.2B
Accumulated Other Comprehensive Income	(2.5B)	(2.8B)	(2.1B)	91M	(618M)	(648.9M)
Short Term Debt	599M	1.2B	1.6B	1.6B	3.2B	3.4B
Common Stock	2.0B	2.0B	25.5B	25.5B	25.6B	26.9B
Other Liab	4.6B	4.8B	12.3B	13.1B	15.0B	15.8B
Net Tangible Assets	6.6B	7.0B	33.5B	38.5B	44.3B	46.5B
Cash	133M	147M	69M	451M	464M	305.8M
Other Assets	1.1B	22.1B	67.9B	71.1B	81.8B	85.9B
Long Term Debt	8.0B	8.6B	18.6B	18.1B	19.4B	20.3B
Long Term Investments	341M	199M	42.5B	45.3B	533M	506.4M
Short Long Term Debt	599M	1.2B	1.6B	1.5B	3.1B	3.3B
Property Plant Equipment	19.2B	20.4B	21.2B	22.7B	26.0B	14.2B
Long Term Debt Total	8.2B	8.2B	8.6B	18.6B	21.4B	10.8B

Pair Trading with Canadian Pacific

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canadian Pacific position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canadian Pacific will appreciate offsetting losses from the drop in the long position's value.

Moving against Canadian Stock

0.81	AAL	American Airlines Fiscal Year End 23rd of January 2025	Pair Corr
0.8	UAL	United Airlines Holdings Sell-off Trend	Pair Corr
0.78	SKYW	SkyWest	Pair Corr
0.76	B	Barnes Group	Pair Corr
0.75	CPA	Copa Holdings SA	Pair Corr

The ability to find closely correlated positions to Canadian Pacific could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Pacific when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canadian Pacific - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canadian Pacific Railway to buy it.

The correlation of Canadian Pacific is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canadian Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Pacific Railway moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Canadian Pacific can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional Tools for Canadian Stock Analysis

When running Canadian Pacific's price analysis, check to measure Canadian Pacific's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canadian Pacific is operating at the current time. Most of Canadian Pacific's value examination focuses on studying past and present price action to predict the probability of Canadian Pacific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Pacific's price. Additionally, you may evaluate how the addition of Canadian Pacific to your portfolios can decrease your overall portfolio volatility.

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC