Rio Tinto Plc: Company Profile and SWOT Analysis

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					Rio Tinto Plc

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Rio Tinto Plc                                                               Financial Snapshot

                                                                            Operating Performance
Fast Facts
                                     2 Eastbourne Terrace, London, W2       The company reported revenue of US$55,171.00
Headquarters Address
                                     6LG,United Kingdom                     million during the fiscal year 2010 (2010). The
                                                                            company's revenue grew at a CAGR of 25.18%
Telephone                            + 44 20 77812000
                                                                            during 2006–2010, with an annual growth of 31.91%
                                                                            over 2009. In 2010, the company recorded an
Fax                                  + 44 20 77811800                       operating margin of 35.54%, as against 17.95% in
                                                                            2009.
Website                              www.riotinto.com

                                     RIO, London Stock Exchange (LON)RIO,   Revenue and Margins
Ticker Symbol, Stock Exchange
                                     TSX Venture Exchange

Number of Employees                  101,994

Fiscal Year End                      December

Revenue (in US$ million)             55,171.00




SWOT Analysis

Strengths                            Weaknesses
                                                                            Return on Equity
Declined in Debt                     Increase in Operating Cost
                                                                            The company recorded a return on equity (ROE) of
                                                                            24.44% for 2010, as compared to its peers, Vale S.A.
Strong Market Position               Production Cutbacks                    (Ticker: VALE5), BHP Billiton (Ticker: BHP) and Anglo
                                                                            American plc (Ticker: AAL), which recorded ROEs of
Wide Product Range                                                          26.99%, 26.22% and 19.11% respectively. The
                                                                            company reported a net profit margin of 35.54% in
                                                                            2010.
Opportunities                        Threats
                                     Declining Demand for Iron Ore          Return on Equity
Contract with Baoshan Iron & Steel
                                     Products

Focus on Capacity Expansion          Increased Regulations

Surging Demand for Gold              Slump in Demand for Steel




                                                                            Liquidity Position

                                                                            The company reported a current ratio of 1.80 in 2010,
                                                                            as compared to its peers, Vale S.A., BHP Billiton and
                                                                            Anglo American plc, which recorded current ratios of
                                                                            1.73, 1.93 and 1.82 respectively. As of December
                                                                            2010, the company recorded cash and short-term
                                                                            investments of worth US$10,469.00 million, against
                                                                            US$2,144.00 million current debt. The company
                                                                            reported a debt to equity ratio of 0.26 in 2010 as
                                                                            compared to its peers, Vale S.A., BHP Billiton and
                                                                            Anglo American plc, which recorded debt to equity
                                                                            ratios of 0.39, 0.34 and 0.39 respectively.




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Rio Tinto Plc - SWOT Profile                                                                                       Page 1
Rio Tinto Plc

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Operational Efficiency ......................................................................................................................................12
      2.2.4       Solvency ..........................................................................................................................................................13
      2.2.5       Valuation ..........................................................................................................................................................14
    2.3       Competitive Benchmarking ..................................................................................................................................15
      2.3.1       Market Capitalization .......................................................................................................................................15
      2.3.2       Efficiency ..........................................................................................................................................................16
      2.3.3       Capital Expenditure ..........................................................................................................................................17
      2.3.4       Valuation ..........................................................................................................................................................18
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................19
      2.3.6       Liquidity ............................................................................................................................................................20
3     Mergers & Acquisitions and Partnerships ........................................................................................... 21
    3.1       M&A and Partnerships Strategy ...........................................................................................................................21
Recent Developments ................................................................................................................................... 22
4     SWOT Analysis .........................................................
				
DOCUMENT INFO
Description: ICD Research's "Rio Tinto Plc: Company Profile and SWOT Analysis" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, SWOT analysis, key facts, Competitive benchmarking, information on products and services, financial ratios, plus information on key news events affecting the company.
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