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Vale S.A. (VALE) | Profitability Analysis

Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).


Ratios (Summary)

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Vale S.A., profitability ratios

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Return on Sales
chart Gross profit margin % % % % %
chart Operating profit margin % % % % %
chart Net profit margin % % % % %
  Return on Investment
chart Return on equity (ROE) % % % % %
chart Return on assets (ROA) % % % % %

Source: Based on data from Vale S.A. Annual Reports

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Vale S.A.'s gross profit margin improved from 2009 to 2010 and from 2010 to 2011.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Vale S.A.'s operating profit margin improved from 2009 to 2010 and from 2010 to 2011.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Vale S.A.'s net profit margin improved from 2009 to 2010 and from 2010 to 2011.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Vale S.A.'s ROE improved from 2009 to 2010 and from 2010 to 2011.
ROA A profitability ratio calculated as net income divided by total assets. Vale S.A.'s ROA improved from 2009 to 2010 and from 2010 to 2011.

Gross Profit Margin

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Gross profit
chart Operating revenues, net of discounts, returns and allowances
   
chart Gross profit margin1 % % % % %

Source: Based on data from Vale S.A. Annual Reports

2011 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Operating revenues, net of discounts, returns and allowances
= 100 × ÷ = %

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Vale S.A.'s gross profit margin improved from 2009 to 2010 and from 2010 to 2011.

Operating Profit Margin

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Operating income
chart Operating revenues, net of discounts, returns and allowances
  Operating Profit Margin, Comparison to Industry
chart Vale S.A.1 % % % % %
  Industry, Basic Materials % % % % %

Source: Based on data from Vale S.A. Annual Reports

2011 Calculations

1 Operating profit margin = 100 × Operating income ÷ Operating revenues, net of discounts, returns and allowances
= 100 × ÷ = %

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Vale S.A.'s operating profit margin improved from 2009 to 2010 and from 2010 to 2011.

Net Profit Margin

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Net income attributable to the Company’s stockholders
chart Operating revenues, net of discounts, returns and allowances
  Net Profit Margin, Comparison to Industry
chart Vale S.A.1 % % % % %
  Industry, Basic Materials % % % % %

Source: Based on data from Vale S.A. Annual Reports

2011 Calculations

1 Net profit margin = 100 × Net income attributable to the Company’s stockholders ÷ Operating revenues, net of discounts, returns and allowances
= 100 × ÷ = %

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Vale S.A.'s net profit margin improved from 2009 to 2010 and from 2010 to 2011.

Return on Equity (ROE)

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Net income attributable to the Company’s stockholders
chart Company stockholders’ equity
  ROE, Comparison to Industry
chart Vale S.A.1 % % % % %
  Industry, Basic Materials % % % % %

Source: Based on data from Vale S.A. Annual Reports

2011 Calculations

1 ROE = 100 × Net income attributable to the Company’s stockholders ÷ Company stockholders’ equity
= 100 × ÷ = %

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Vale S.A.'s ROE improved from 2009 to 2010 and from 2010 to 2011.

Return on Assets (ROA)

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Net income attributable to the Company’s stockholders
chart Total assets
  ROA, Comparison to Industry
chart Vale S.A.1 % % % % %
  Industry, Basic Materials % % % % %

Source: Based on data from Vale S.A. Annual Reports

2011 Calculations

1 ROA = 100 × Net income attributable to the Company’s stockholders ÷ Total assets
= 100 × ÷ = %

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Vale S.A.'s ROA improved from 2009 to 2010 and from 2010 to 2011.

May 21, 2012

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