Steel Corp

1. The join on on gross gross revenue is explained by the enlarge in units, Price or both? The increase in the sales delineate is explained in great measurement by the increase in bleak material prices, in particular in the nickel. This is link to the Real Estate bubble. Steel prices and by derivation nickel Prices went up in such a spoiled measure due to the big hold glide slope from Construction flora and car producers. Also the increase in demand from uphill markets mostly from China. The Chinese are the biggest consumers of steel in the world. 2. Peers? Biggest sinless Steel producers in rank: ArcelorMittal| The Netherlands| Acerinox| Spain| ThyssenKrupp unblemished| Germany| TISCO| China| POSCO| siemens Korea| Outokumpu| Finland| AK Steel| USA| NSSC| Japan| YUSCO| chinaware| INI Steel| south Korea| Allegheny| USA| 3. Is the positive trend of sales fully matched at the EBITDA train? When looking at the EBITDA level w e can chink it grew in 168% from 05 to 06 and hence diminished in 07 by -34%. sales grew 33% in 06 and 22% in 07. There is a gap in the growth advent from sales where income is scattered due to the increase in raw material prices and forecasted demand which led to an arsenal cut. 4. Which is the EBITDA margin?

| 05| 06| 07| EBITDA mete| 8.6%| 15.6%| 9.7%| 5. What method to quantify inventories (first in first out, average weightiness cost, last in first out) has been used? The increase in purchases is of 44% and 22% in 06 and 07 respectively. As to the sales the increase was of 34% and 18 %. We can conclude that they use FIFO becaus! e the inventory keep down increases through 06 in 65% and then decreases in 07 by -13%. The rise in prices in 2006 is the conclude why the inventory is more expensive because the increase in purchases was non as big as the increase in inventory price. If they used LIFO the inventory in 2006 would not have increased so much. The fall in the 07 number is due to the cut in inventory at devolve explained by the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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