Tronox Inc. (TROX)

[fuller11]

As posted by "The Street" website. Now I am starting to get it

"Highlights from the ratings report include: ? TRONOX LTD's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TRONOX LTD reported poor results of -$3.73 versus -$1.10 in the prior year.
? The company's net income has fallen into negative territory during the last reported quarter when compared with the same quarter a year earlier. However, since the company had zero dollars in a net income for the prior period, we are unable to calculate a percent change in order to compare its growth rate with that of its industry average.
? Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Chemicals industry and the overall market, TRONOX LTD's return on equity significantly trails that of both the industry average and the S&P 500.
? The gross profit margin for TRONOX LTD is rather low; currently it is at 16.37%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -19.28% is significantly below that of the industry average.
? The debt-to-equity ratio is very high at 2.30 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, TROX's quick ratio is somewhat strong at 1.22, demonstrating the ability to handle short-term liquidity needs."