The debt to equity ratio increased greatly. However in both years it was smaller than the industry’s gearing ratio. This increased because the company borrowed a loan of 300m. Blacksea therefore becomes more indebted in relation to it’s worth in 2010. However it is better than the industry’s gearing level which is at 30%. Therefore the company got into a more risky position.
Price earnings ratio:
This ratio decreased in 2010. This is because the stock price decreased and the company lost popularity. The investor’s expectations about the company’s future prospects is shown by PER.