FINM 221 Assignment 1 Part 5 Figure 1 Table of Du Pont Analysis Ratios FLM is the ratio of a company's finance purchase of assets, either through equity or debt. A high equity multiplier indicates that a larger portion of assets financing in being done through debt. It is also an indicator of potential threats a company may face from economic conditions that affect the debt-equity mix. (Equity Multiplier) From 2012 to 2013 the FLM increased. This means that a larger portion of assets financing is being done though debt. If economic conditions change, the company is likely to be more vulnerable because of its increased debt. ROA is an indicator of how profitable a company is relative to its assets. An ROA gives an idea as to how efficient …show more content…
This ratio gives insight as to how much profit is being produced per Rand of sales. An increasing ROS indicates an increase in the efficiency of the company growth. (Return On Sales - ROS)From 2012 to 2013 the ROS decreased further from an already negative value. This indicates possible financial troubles. ATR is the amount of sales or revenues generated per Rand of assets. The ATR is an indicator of the efficiency with which a company is deploying its assets. The higher the ratio is, the more revenues per Rand of assets generated by the company. (Asset Turnover Ratio)From 2012 to 2013 the ATR has increased; a higher income is being generated per Rand of …show more content…
(n.d.). Retrieved August 28, 2014, from Investopedia.com: http://www.investopedia.com/terms/a/assetturnover.asp Decoding DuPont Analysis. (n.d.). Retrieved August 28, 2014, from Investopedia.com: http://www.investopedia.com/articles/fundamental-analysis/08/dupont-analysis.asp Equity Multiplier. (n.d.). Retrieved August 28, 2014, from Investopedia.com: http://www.investopedia.com/terms/e/equitymultiplier.asp Negative Return. (n.d.). Retrieved August 28, 2014, from Investorpedia.com: www.investopedia.com/terms/n/negative-return.asp Return On Assets - ROA. (n.d.). Retrieved August 28, 2014, from Investopedia.com: http://www.investopedia.com/terms/r/returnonassets.asp Return On Sales - ROS. (n.d.). Retrieved August 28, 2014, from Investopedia.com: Return On Assets - ROA Arcelormittal-reports.com, (2014). ArcelorMittal South Africa Integrated Annual Report 2013 - Summary consolidated statement of comprehensive income. [online] Available at: http://www.arcelormittal-reports.com/reports/ar_2013/integrated/fin-ci.php [Accessed 28 Aug.