Financial Leverage Ratio
It measures the relationship between total assets and the stockholders’ equity that finances the assets.
Both company shows pretty high financial leverage
High financial leverage means they are highly
dependent on debt when financing assets.
Total Asset Turnover Ratio
Total Asset Turnover measures the sale generated
per
Chart 4. is a graph that shows 7 foreign and domestic oil refining companies's Financial Leverage percentage.
Royal dutch shell and Chevron show more attractive ratios than other companies.
Financial Leverage percentage is related to ROE and ROA, so the graph’s shape is so similar. BP shows very high percentages for 3 years, but it keeps decreasing. And that difference is getting bigger and
financial statement and information, less dynamic, stable industries were chosen from each country so that there are fewer aberrations. The paper initially evaluates different ratios representing short-term solvency, asset utilization/turnover, long-term solvency or financial leverage, profitability and market values for companies in the same industry within same country. Then, the paper further
Afterwards, we had to choose for Nongshim and choose Ottogi as the main competitor of Nongshim. one company and competitive company in the industry and we made the final decision to make the consulting report . In this consulting report , we want to research the financial structure and the financial problem of Nongshim and furthermore, we want to find the effective solution to the problem.