Rio de janeiro Tinto is known as a global and diversified miner and is divided into five item groups (Rio Tinto, 2012). And relating to Rio Tinto (2012), they are the aluminum product group, the copper product group, the diamonds & minerals product group, the energy merchandise group plus the iron ore product group. According to the chairman of the organization, Rio Morapio has got a great grade this summer, despite the long lasting economic crisis and fluctuation of the world (Rio Colorato, 2012). In addition, from the main executive's affirmation, it can be found that the company has set up a clear objective that aims to control cost and increase efficiency. The following document analyses some financial and non-financial problems to decide whether or not to invest the corporation.
Here is a desk about the financial situation of Rio Colorato. Figure you: Key Monetary Data of Rio Verniciato (2010-2011)
| 2010 as well as US$ million| 2011 / US$ mil
Net income before tax| 20, 491| 13, 214
Net income after tax| 15, 098| 6, 765
Total thorough income| of sixteen, 492| 5, 365
Sales| 59, 214| 65, 622
Total assets| 112, 773| 119, 545
Current assets| 21, 459| 21, 898
Current liabilities| -12, 876| -14, 966
Cash flow via operating activities| 23, 530| 27, 388
Net earnings from working activities| 18, 277| 20, 030| (Sources: )
The table over includes many financial info which can be accustomed to analyze the financial situation in the miner. First of all, net profit before taxes compared to sales and total assets transformed respectively coming from 34. 6% to 20. 1% and 18. 2% to 11. 1% from 2010 to 2011, those percentages all lowered sharply and mean that the net profit margin and return on total assets every fell significantly. As a result, total comprehensive cash flow that involves net income and other items bypassing the net profits rather than net profit is more suitable for buyers to take into account...