Ratios report Essay Example | Topics and Well Written Essays - 1000 words

Ratios report - sample ExampleThis shows that the company has been aggressive in financing its growth through debts. Investors may be expert at this dimension because benefits of win are spread to the same number of stockholders and there is no take away to add in new investors. However, analysts feels that a high debt financing may result to unstable earnings because of high interest that can be too much for the company to handle (Investopedia) The total debt to honor ratio of 115% shown in Table 1 is an analysis done by stock brokers that is higher(prenominal) than the sector average (Table 1 attached) A high ratio is generally accepted to capital intense industry that tends to have a higher ratio, according to Investopedia2. Financial analysis of the companys make accounts over a volt (5) year period (most recent) including wampumability and liquidity ratios and analyzed with graph for severally ratio are presented in annexed tables and charts.Gross Profit ratio. As of 2008, La Farge has a gross bread ratio of 27.86% which is slightly lower than 27.89% of 2007. Its gross profit ratio does not differ much in previous years performances as shown in Table 1 and Chart 1. (Reuters Financial Statement)Net profit ratio. The sales turnover of 2008 provided 8.40% net profit ratio for the company which is lower than its net profit ratio of 2007 that is 10.8% Table 2 and Chart 2 show Net Profit Ratio of the company for five years.Return on Shareholders. In 2008, La Farge gave the shareholders a return on their investment of 18%. This practice is very much lower than the 25.39% ROS in 2007. Table 3 and Chart 3 show fluctuate ROS, with 2007 as having the highest, followed by 2004.Share price of La Farge as of November 20, 2009 is 56.83. From the chart it showed significant upward style from July to October. The share price movement is an indication of investors confidence to the companys performance or a response toeconomic problems. Stock