Air Liquide SA

par simplesoul » 02 sept. 2012 07:35

Air Liquide SA is a France-based company engaged in the supply of oxygen, nitrogen, hydrogen and other gases. The Company classifies its activities as follows: Gas and Services, Engineering and Construction and Other Activities. Gas and Services activities are divided by customer segments: large industries, which manages major production units for customers in the steel, chemicals and refining industries; industrial merchants, which supplies gases and services to industries of all sizes requiring variable quantotoes; healthcare, which supplies medical gases, hygiene products, equipment and services to hospitals and patients; and electronics, which supplies gas and services for the production of semi-conductors, flat panels and photovoltaic panels. Engineering and Construction activities includes the construction of production units (air separation units (ASUs), hydrogen production units), and Other Activities includes the welding an cutting, specialty chemicals and diving businesses.

Year over year, L'Air Liquide SA has been able to grow revenues from €13.5B to €14.5B. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 18.11% to 17.59%. This was a driver that led to a bottom line growth from €1.4B to €1.5B.

Although debt as a percent of total capital decreased at L'Air Liquide SA over the last fiscal year to 41.51%, it is still in-line with the Chemicals industry's norm. Additionally, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Accounts Receivable are typical for the industry, with 68.43 days worth of sales outstanding. Last, inventories seem to be well managed as the Inventory Processing Period is typical for the industry, at 48.33 days.

ROA 6.50%
ROE 17.30%