Sunoco, Inc Financial Analysis Report

Sunoco , Inc

There is currently a high demand in energy in the market , so what better way to take advantage of the situation than invest in an energy company For this study , I chose Sunoco , Inc . Sunoco refines and markets petroleum . The company has a refining capacity of 910 ,000 barrels per day from five refineries and also has around 4 ,700 retail sites . Sunoco also manufactures petrochemicals that are used in making fibers plastics , film and resins . The company also manufactures metallurgical-grade coke that is used by the steel industry . With

br headquarters in Philadelphia , Sunoco 's petroleum and petrochemicals operations are done mainly in the eastern part of the country . Its cokemaking facilities are located in Virginia , Indiana , Ohio and Brazil The company 's shares trade at the New York Stock Exchange under the symbol SUN

The good thing about Sunoco is that it has a very comprehensive company website and it is a public company . Being a public company , its financial statements can be accessed through the website of the U .S Securities and Exchange Commission . From the data obtained in the company 's financial statements , revenues for the year ended 2007 went up to 44 .73 billion from 38 .72 billion in 2006 . Due to an increase in the price of crude oil , costs and expenses also went up 43 .32 billion in 2007 compared to 37 .14 billion in 2006 . As result , net income for the year ended 2007 went down to 891 million from 979 million in 2006 . The company 's balance sheet showed that as of Dec . 31 , 2007 , was 12 .4 billion while a shareholders ' equity of 2 .5 billion

In terms of profitability , the company only had a profit margin of 2 Return on assets for 2007 was 8 while return on equity was 39 . For the year ended 2007 , the company was illiquid with a current ratio of 0 .82 and quick ratio of 0 .62 . Working capital to negative 0 .08

Doing computations further showed that the company had a shareholders equity ratio of 0 .20 . The ratio of current assets to 0 .63 while debt ratio was 0 .59 . In relation to asset management , Sunoco had 6 .32 and receivables turnover of 15 .66 . The company 's financial statement also showed that it had a free cash flow of 191 million Return on investment using the DuPont formula was 7

Additionally , the company 's stocks are trading at a little more above 50 . This is actually a drop considering that the company 's shares traded at around 80 in the middle of 2007

So , should I start investing in this company ? Based on the results as well as the financial analysis made , I would say that the best judgment would be to hold buying stocks and see what happens during the first two quarters of 2008 . Although initially thought of as a good investment the findings show that the company had trouble recouping expenses due to the increase in...