The following financial information (in millions) is for two major corporations for the three fiscal years ended December 31 as follows:

Instructions
(a) Calculate return on assets and return on equity for each company for 2011 and 2010. Comment on whether their ratios have improved or deteriorated.
(b) Compare Canadian Pacific's ratios with Canadian National's.
(c) The industry average for return on equity in 2011 was 5.33%. Compare the two companies' performance with the industry average.
Taking It Further
Using your findings in this question to illustrate, explain why it is important to use comparisons in evaluating ratios.

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2011 2010 2009 Canadian Pacific Railway Limited Profit Shareholders' equity Total assets $ 570 4,649 14,110 $ 651 4,824 13,676 550 4,658 14,155 Canadian National Railway Company Profit Shareholders' equity Total assets 2,457 10,680 26,026 S 2,104 11,284 25,206 1,854 11,233 25,176