BHP Billiton

Executive Summary This financial say contains an analysis of BHP Billiton and its important competitor Rio Tinto. This report is also analysis the companies by figure mingled ratios including grocery store, leverage, advantageability, liquidity, and efficiency from the collective data in both(prenominal) beaus annual reports. This information is used as a tool of comparison in the decision making method of finding out whether BHP Billiton is a sound arrangement choice. As the analysis in this report shows, BHP has had increasing operational turn a profit margins since 2001-2004. BHP Billiton have produced excellent results of this period as both the operational profit margin and return of Shareholders shop have been increasing every year since 2001. Moreover, BHP Financial stage has also been strengthening as debt has been decreasing in conjure up of assets. BHP Billiton has made it a policy to pay back debt frankincense bring down its leverage. From our an alysis and research, the uptrend and increase financial movement of BHP Billiton have is callable to the up cycle in the commodities commercialize with demand coming mainly from mainland China, India, and the United States.

We recommend clients to garb in BHP Billiton for a decent return on shares collectable to the following factors: Strong Financial Performance and Position hale conk on Shareholders Funds analyse with BHP bimestrial term prospects are intact as China is forecasted to kindle at 8% annual growth for the beside decade. increase Cash flow from operations pull up stakes fit to more(prenominal) upside in dividend payouts. Recommendation! s are made on the flatbed coat of analyzing and comparing ratios for both BHP Billiton and Rio Tinto. It is lightheaded that both companies are benefiting from this cyclical up cycle in commodities prices and dependable global growth; however we believe BHP Billiton will provide more upside potential, with limited downside risk, as our report will give further detail regarding our analysis.If you want to blend in a full essay, order it on our website: OrderCustomPaper.com

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