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

French Total company - Research Paper Example16,075,861debt proportionality0.1310187480.1022744440.09628153The supra trend shows an emergence in the debt balance, this means that companies creditworthiness is improving but this increase in the ratio indicates a reduction in the usage of assets.Debt faithfulness ratioThe debt blondness ratio indicates whether a company pecuniary resource more using debts or equity, this is an important ratio in that it helps in last making whereby a company may want to raise more capital either by means of 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 debt equity ratio2007 declination2006 December2005 DecemberLong Term Debt21,910,86018,790,51016,075,861Total shareholder Equity66,071,34894,908,44586,526,342debt ratio0.3316242310.1979856480.185791525From the above table it is evident that the debt equity ratio has change magnitude over the socia l classs, this ratio shows 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.Gross profit gross profit marginThe gross profit margin 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 costs of goods sold excluding opposite 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 may 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 manifestation 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 purpose efficiency. The gross profit margin has declined 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.