French Total company Research Paper Example | Topics and Well Written Essays - 1250 words

French Total confede ration - Research Paper Example16,075,861debt ratio0.1310187480.1022744440.09628153The higher up trend builds an increase in the debt ratio, this means that companies creditworthiness is improving but this increase in the ratio indicates a reduction in the usage of assets.Debt equity ratioThe debt equity ratio indicates whether a company finances more using debts or equity, this is an important ratio in that it helps in decision making whereby a company may penury to raise more capital either through debt or equity, the debt equity ratio is calculated by dividing positive debt by total equity, the following is a summary of the debt equity ratio debt equity ratio2007 December2006 December2005 DecemberLong Term Debt21,910,86018,790,51016,075,861Total Stockholder Equity66,071,34894,908,44586,526,342debt ratio0.3316242310.1979856480.185791525From the above table it is evident that the debt equity ratio has increased over the years, this ratio fork ups that the company finances more through equity than debts, the trend also show that there has been a reduction in finance through equity and an increase in debt financing. porcine make security depositThe gross profit bank is a financial ratio that indicates the gross profit earned on sales, this ratio is calculated by dividing gross profits by sales, this ratio considers the be of goods sold excluding other cost, the following table summarises the company gross profit margingross profit margin2007 December2006 December2005 DecemberGross Profit72,197,13940,102,79258,740,318Total Revenue233,825,821175,189,287145,228,759gross profit margin0.3087646120.2289112120.404467534For the year 2007 the gross profit margin was 0.3038 which is an increase compared to the 2006 ratio. This ratio shows the proportion of gross profit in... The debt-equity ratio indicates whether a company finances more using debts or equity, this is an important ratio in that it helps in decision making whereby a company m ay want to raise more capital either through debt or equity, the debt equity ratio is calculated by dividing total debt by total equity, the following is a summary of the debt equity ratio. It is evident that the company fiancs more suing equity, this is evident from the debt equity ratio, however, the trend of this ratio over the years show that the company equity level is declining and an increase in debts. The other observation is that the return on equity has improved over the years and this shows that this return ratio will increase in future. The other observation is that the return on assets has improved and shows an improvement in asset utilisation efficiency. The gross profit margin has castigated over the years this ratio was highest in 2005, declined in 2006 and slightly increased in 2007. This shows that the profitability of the company is expected to rise although the trend shows a decline in profitability.