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

Instructions
(a) Calculate return on assets and return on equity for each company for 2014 and 2013. Comment on whether their ratios have improved or deteriorated.
(b) Compare Canadian Pacific's ratios with Canadian National's.
(c) The five-year industry average for return on equity is 11.14%. 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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2014 2013 2012 Canadian Pacific Railway Limited Profit S 484 Shareholders' equity Total assets $1,476 5,610 16,640 $ 875 7,097 17,060 5,097 14,727 Canadian National Railway Company Profit Shareholders' equity Total assets 3,167 13,470 31,792 $ 2,612 12,953 30,163 $2,680 11,018 26,659