Financial Ratio Analysis: Daimler Group and Bmw Group
To: Board Directors of Daimler Group
2012
Financial Analysis: A comparison between Daimler Group and BMW Group
Abstract
In this report, we calculate and compare the financial performance between Daimler Group and BMW Group in two financial years 2010-2011. The objective is to analyse the financial performance of both groups and identify our company’s position, thus suggesting the potential areas for improvement for our company.
I) Introduction
In this report, we analyse and compare the financial performance between BMW Group and Daimler Group in 2010 and 2011 using financial ratios analysis. The BMW Group and Daimler Group are two of Germany’s largest industrial companies and are among the most successful car and motorcycle manufacturers in the world. By doing comparisons, we will be able to identify the financial position and the potential areas of improvement for our firm.
All the figures were taken from the firms’ annual reports.
II) Financial Ratio Analysis
Financial ratios for BMW Group and Daimler Group are provided below.
| Ratios | BMW | Daimler Group | | | 2011 | 2010 | 2011 | 2010 | Profitability | Return on Capital Employed (ROCE) (%) | 10.5 | 7.3 | 9.4 | 8.8 | | Return on Equity (ROE) (%) | 18.1 | 13.5 | 14.6 | 12.3 | | Net Profit Margin (NPM) (%) | 11.7 | 8.5 | 8.2 | 7.4 | | Gross Profit Margin (GPM) (%) | 21.1 | 18.1 | 24 | 23.3 | Efficiency | Sales Revenues to Capital Employed | 0.9 | 0.86 | 1.14 | 1.18 | | Sales Revenues to non-Current Assets | 0.92 | 0.9 | 1.22 | 1.24 | | Sales Revenues to Working Capital | 38.42 | 20.0 | 17.0 | 25.3 | | Inventory Turnover Period (days) | 65 | 57 | 77 | 71 | | Trade receivables settlement period (days) | 17 | 14 | 27 | 27 | | Trade payables settlement period (days) | 36 | 31 | 43 | 37 | | The Operating Cycle (days) | 46 | 40 | 61 | 61 | Liquidity | Current Ratio | 1.04 | 1.08 | 1.11 | 1.07 | | Acid Test Ratio | 0.83 | 0.88 | 0.8 | 0.8 | |
2012
Financial Analysis: A comparison between Daimler Group and BMW Group
Abstract
In this report, we calculate and compare the financial performance between Daimler Group and BMW Group in two financial years 2010-2011. The objective is to analyse the financial performance of both groups and identify our company’s position, thus suggesting the potential areas for improvement for our company.
I) Introduction
In this report, we analyse and compare the financial performance between BMW Group and Daimler Group in 2010 and 2011 using financial ratios analysis. The BMW Group and Daimler Group are two of Germany’s largest industrial companies and are among the most successful car and motorcycle manufacturers in the world. By doing comparisons, we will be able to identify the financial position and the potential areas of improvement for our firm.
All the figures were taken from the firms’ annual reports.
II) Financial Ratio Analysis
Financial ratios for BMW Group and Daimler Group are provided below.
| Ratios | BMW | Daimler Group | | | 2011 | 2010 | 2011 | 2010 | Profitability | Return on Capital Employed (ROCE) (%) | 10.5 | 7.3 | 9.4 | 8.8 | | Return on Equity (ROE) (%) | 18.1 | 13.5 | 14.6 | 12.3 | | Net Profit Margin (NPM) (%) | 11.7 | 8.5 | 8.2 | 7.4 | | Gross Profit Margin (GPM) (%) | 21.1 | 18.1 | 24 | 23.3 | Efficiency | Sales Revenues to Capital Employed | 0.9 | 0.86 | 1.14 | 1.18 | | Sales Revenues to non-Current Assets | 0.92 | 0.9 | 1.22 | 1.24 | | Sales Revenues to Working Capital | 38.42 | 20.0 | 17.0 | 25.3 | | Inventory Turnover Period (days) | 65 | 57 | 77 | 71 | | Trade receivables settlement period (days) | 17 | 14 | 27 | 27 | | Trade payables settlement period (days) | 36 | 31 | 43 | 37 | | The Operating Cycle (days) | 46 | 40 | 61 | 61 | Liquidity | Current Ratio | 1.04 | 1.08 | 1.11 | 1.07 | | Acid Test Ratio | 0.83 | 0.88 | 0.8 | 0.8 | |