The Second Largest Global Manufacturer of Escalators and Elevators - Schindler Free Essay Example, 2500 words

The downward trend from 2004 to 2005 has been reversed from 2005 up to 2008 (Exhibit 2). Since 2005, this ratio is increasing over the years. Schindler Holding has made its total assets work harder in order to generate revenue, as apparent in the upward trend of the ratio. Schindler Holding utilises both equity and debt in financing its operations. The company uses 72% of debt in financing its operations in 2004, 69% in 2005, 70% in 2006, 71% in 2007 and 70% in 2008 (Table 1). This debt policy is relatively stable for the company over the years, which is illustrated by the relatively flat trend for the company's debt ratio. In order to measure the company's profitability, four ratios are used for the analysis the operating profit margin on sales, the net profit margin on sales, the return on total assets, and the return on equity. In 2004, the company's operating profit margin is 6% of sales, 7% in 2005, 7% in 2006, 6% in 2007 and 6% in 2008 (Table 1). The trend for this ratio has been relatively flat over the years (Exhibit 4). We will write a custom essay sample on The Second Largest Global Manufacturer of Escalators and Elevators - Schindler or any topic specifically for you Only $17.96 $11.86/page