Financial Ratio Analysis

User Generated

Fjrrgzvmmrf

Business Finance

Description

Calculate and analyze the following ratios for your selected company for the last two years from the SEC Form 10-K:

  • Gross Profit Margin
  • Net Profit Margin

Compare and contrast the company's ratios to industry and competitor standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or other Internet sources, and provide a detailed answer and analysis as to why your company's ratios are different than the industry/competitor standard.

Prepare your analysis in a minimum of 220 words in Microsoft® Word. The use of Microsoft®Word tables is encouraged.

Cite the source of the industry/competitor ratio information.

Format your assignment consistent with APA guidelines.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Kindly see attached file.I've also included an excel file with the calculations and a plagiarism report in case you're requested to present any of them.

US Steel

Gross
profit
(2015)
Net profit
(2015)
Revenue
(2015)
Gross
profit
margin
(2015)
Net profit
margin
(2015)
Gross
profit
(2016)
Net profit
(2016)
Revenue
(2016)
Gross
profit
margin
(2016)
Net profit
margin
(2016)

AK Steel

Carpenter Commerci
Technolog al Metals Nucor
y
Company

Steel
ArcelorMit
Dynamics tal

433

660.9

255.9

676.8

1,113.90

731.7 -1,618.00

-1,604.00

-509

11.3

99.1

80.7

-130.3 -8,925.00

11,574.00

6,692.90

1,813.40

5,988.60 16,439.30

7,594.40 63,578.00

3.74%

9.87%

14.11%

11.30%

6.78%

9.63%

-2.54%

-13.86%

-7.61%

0.62%

1.65%

0.49%

-1.72%

-14.04%

638

817.8

284.3

636

2,025.90

1,334.90

6,363.00

-342

-7.8

47

72.5

796.3

382.1

2,349.00

10,261.00

5,882.50

1,797.60

6.22%

13.90%

15.82%

14.59%

12.50%

17.16%

11.20%

-3.33%

-0.13%

2.61%

1.66%

4.91%

4.91%

4.14%

4,360.50 16,208.10

7,777.10 56,791.00


Running head: THE US STEEL CORPORATION AND THE STEEL INDUSTRY

The US Steel Corporation and the Steel Industry
Financial Analysis
(Name)
(Course)
(Date)

1

THE US STEEL CORPORATION AND THE STEEL INDUSTRY

2

Evolution of the gross profit margin and net prof it margin of United States Steel
Corporation
The gross profit margin and the net profit margin are calculated by dividing either the
gross profit or the net profit by the revenues of the company. Taking this into account, table 1
shows the gross profit, net profit, revenue, gross profit margin and net profit margin of US Steel
Corporation over the last two years according to the information obtained from the respective
SEC 10K fillings (United States Steel Corporation, n.d.).
Table 1. Calculation of the gross profit margin and the net profit margin for the US Steel
Corporation (absolute quantities expressed in million $)

Gross profit
Net profit
Revenue
Gross profit margin
Net profit margin

2015
433.0
-1,604.0
11,574.0
3.74%
-13.86%

2016
638.0
-342.0
10,261.0
6.22%
-3.33%

As can be observed from the data presented in the table, the US Steel Corporation had an
overall negative net profit margin on both 2015 and 2016. Interestingly, both the gross profit and
the net profit had increased from 2015 to 2016 despite the decreased overall revenue. As a result,
the gross profit margin and the net profit margin have increased in 2016.
Comparison of the gross profit margin and net profit margin with those of the main
competitors
The US manufacturing steel industry is characterized by the presence of a few big steel
manufacturing companies which can be either headquartered in the United States or in Europe.
In this regard, the main competitors of the US Steel Corporation are AK Steel, the Carpenter

THE US STEEL CORPORATION AND THE STEEL INDUSTRY

3

Technology Corporation, Commercial Metals Company, Nucor, Steel Dynamics and
ArcelorMittal. Table 2 compares the gross profit margin and net profit margin for each of these
companies in the last two years.
Table 2. Calculated gross profit margin and net profit margin for the different ...


Anonymous
Very useful material for studying!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags