Financial Analysis of Mitsui & CO - Essay Example

Summary

It can be seen clearly that group revenues have increased steadily from 2004 to 2007. Year 2007 has seen the largest increase of 17.6%. But rate of growth of NIAT has declined by half from 2004 to 2007. The total assets of the company have increased substantially over the years, while long term liabilities have also decreased substantially.
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Subject: Miscellaneous
Type: Essay
Level: Undergraduate
Pages: 3 (750 words)
Downloads: 2
Author: duncan62

Extract of sample "Financial Analysis of Mitsui & CO"

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The company seems to be well managed. The profitability assessments are mostly positive, the liquidity position of the company is also steady and the operational efficiency is also relatively good. But the capital structure shows weaknesses. The company needs to reduce its leverage for it to be viable in the longrun. The ratings provided by the above organizations show that the company is well trusted in the market and shows strength. Appendix1. Return on Investment (ROI) = {Profit before interest and tax (PBIT) / Investment (total assets - current liabilities)}2007: (2798 / 50,874) x 100; 2006: (2164 / 43270) x 1002.

Gross Profit Ratio = (Gross Profit) / Revenue2007: (2798 / 41,363) x 100; 2006: (2164 / 29741) x 100 3. Return on Equity (ROE) = {Profit after interest and tax / Equity }x 1002007: (1347 / 17,884) x 100; 2006: (1066 / 14,341) x 1004. Earnings per share (given as income per share)5. Working Capital = Current assets - Current liabilities 2007: (42,998 - 32,290) ; 2006: (40,571 - 30,008)6. Current Ratio = Current assets : Current liabilities2007: ((42,998 / 32,290) ; 2006: (40,571 / 30,008)7.

Acid Test (or Quick) Ratio = Quick Assets : Current liabilities (Quick assets = current assets - stocks) 2007: (42,998 - 2155) / 32,290 ; 2006: (40,571 - 2736) / 30,0088. Total Asset Turnover = Revenue / Total assets (fixed + current) (times)2007: (41,363 / 83,164) ; 2006: (35,175 / 73,278)9. Fixed Asset Turnover = Revenue / Fixed Assets (times)2007: (41,363 / 8365) ; 2006: (35,175 / 6378)10. Cash Turnover Ratio = Revenue / Average Cash Balances (times) 2007: {41,363 / [(6780 + 5958)/ 2] }; 2006: {35,175 / [(5958 + 7400) / 2]} 11.

Gearing ratio = {Total debt capital / (Total debt capital + Equity funds) }x 100 2007: {(5583 + 3151) / [5583 + 3151 + 17,884] ] x 100; 2006: {(4622 + 3019) / [4622 + 3019 + 14,341] } x 100 12. Debt-Equity ratio = (Debt capital / Equity capital ) x 1002007: {(5583 + 3151) / 17,884 }x 100; 2006: {(4622 + 3019) / 14,341} x 10013. Debt Ratio = (Total Debt Finance / Total Assets) x1002007: {(5583 + 3151) / 83,164}x 100; 2006: {(4622 + 3019) / 73,278}x 100ReferencesAnnual Report 2007: Mitsui & Co, Ltd.

[Online]www.mitsui.co.jp.Annual Report 2006: Mitsui & Co, Ltd. [Online]www.mitsui.co.jp.Annual Report 2005: Mitsui & Co, Ltd. [Online]www.mitsui.co.jp.Annual Report 2004: Mitsui & Co, Ltd. [Online]www.mitsui.co.jp."Financial Information: Credit Ratings." www.mitsui.co.jp."Mitsui &

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