FACTS - SHIPPING COMPANIES THE PROFIT RATIO The profit ratio shows, how big a part of the net turnover that turns into profit, when all costs except the financial costs are subtracted. It has been calculated as the profit from operations divided by the net turnover multiplied by 100. A profit ratio of for example 4.6 per cent shows that 4.6 per cent of the net turnover is left, when all costs except the financial costs are subtracted. Seven of the companies have had a decreasing profit ratio compared to 2014, while 11 have achieved a larger profit ratio than in 2014. Two companies have exactly the same profit ratio. Torm is one of the shipping companies that has had a significant increasing profit ratio, as the operating profit increased from 23.6 million USD in 2014 to 218.5 million USD in 2015. The growth is due to the increased demand within product tank, which has been present in 2015. Scandlines has also had a significant increasing profit ratio. The 2015 result is, however, to a high degree positively influenced by the sale of the ferry route Helsingør-Helsingborg.
THE RATE OF RETURN The rate of return has been calculated as the profit from operations divided by the total volume of assets on average multiplied by 100. This key figure tells, how big a profit the company is able to generate when taken into comparison how much money is tied up in assets. Or in other words, it shows the company’s ability to pay interest on the total volume of assets. In 2015, 11 shipowners had a lower rate of return than in 2014, while nine shipowners on the other hand had a higher rate of return. Scandlines has had a large growth in the rate of return, but it is only due to the fact that the 2015 result was positively impacted by the sale of the ferry route Helsingør-Helsingborg. Stena Weco has had a rate of return, which increased from 18.2 per cent in 2014 to 69 per cent in 2015.
THE SOLVENCY RATIO The solvency ratio, which is also called the equity ratio, shows, how big a part of the total volume of assets that is financed by the equity. This key figure has been calculated as the equity divided by the balance sheet total multiplied by 100. Here, the difference between the companies is also very evident. In 2015, 12 shipowners have had a larger solvency ratio than in 2014, while eight shipowners on the other hand had a smaller solvency ratio. Generally, the shipping companies that have had a decreasing solvency ratio have also been impacted by tough market conditions such as A.P. Møller-Mærsk, Norden, and J. Lauritzen.
THE GEARING In this analysis, the gearing is included, and it has here been calculated as the total debt divided by the equity, which shows the ratio of debt to equity. The key figure shows, how many times the debt is bigger than the equity. Generally, a number of shipping companies have a low gearing, for example Norden, which inspite of loss at the bottom line in 2015 had a gearing of 0.9. On the contrary, a number of shipping companies have a relatively high gearing. Thorco Shipping has for example the highest gearing – 24.4. This shipping company, which has a fleet of multipurpose vessels, has gone through big problems, which has made it necessary for the owner of the shipping company to put in more capital in order to re-establish the equity. The euity was as of 31 December 2015, 1.2 million USD, which is extremely low, but on the other hand much better than the year before, where the equity was negative, -4.2 million USD. The very low equity is the reason that the gearing is high and the solvency ratio correspondingly low.
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