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5% low cost on dwelling enchancment projects for Army and First Responders. Debt to equity ratio of Atul auto has been reducing constantly from 1.27 in 2008 to zero in 2014 as the corporate is using the money generated from income to pay off its debt. Reducing debt levels scale back interest costs and thereby enhance the profitability of the corporate. In case you revisit the profitability table above, Atul auto’s internet profit margin increased from 4% (2010) to 7% (2014), which is the direct result of decrease in debt of the corporate.

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