Auto Industry Financial Analysis

Financial Accounting Industry Analysis Major rise car Manufacturers In this analysis we will comp be the undermentioned 5 companies: Volkswagen AG, Toyota Motor Co., Ford Motor, Daimler AG, and Tata Motors. instrument panel 1 supplys the revenues (in USD thousands) for the last threesome socio-economic classs. Toyota leads the pack with sales of 209 billion dollars during fiscal course 2009, followed by VW with 163.6 billion. Please none that Toyota and Tata Motors’ fiscal year ends in process 31, whereas Ford, Daimler and VW end their fiscal year in December 31. Table 1: Total Revenues (USD, 000’s) {draw: mannikin} {draw: close in} {draw: adjoin} {draw:frame} If we look at the companies’ liquidity ratios, we will first throwaway that Tata Motors and Ford’s current ratios are well shriek 1.00. Apparently they are having a severe liquidity problem. In the case of Tata motors, this faeces be attri howevered to the acquisition of Jaguar and Landrover. dissolute ratios also show very low numbers, but this reading is still not ample to assess the companies’ liquidity. Ford’s fund disorder rate (13.57) shows that they have managed to maintain a very low inventory level (27 days), which improves to some consummation their liquidity problem, but this is not the case for Tata, with a overthrow just below 7.

Daimler and VW also had low inventory turnover ratios compared to Toyota and Ford – these last both companies having the better Supply strand Management practices like clean in Time. {draw:frame} Finally, looking at the companies& rsquo; income tax return on equity, we chi! t-chat interesting trends. Toyota has experienced its first year with negative profits, but its world-class manufacturing system (TPS) has been strong enough to improve their plaza during the most recent quarter results. Toyota had the outdo profit margins of the 5 companies during 2007 and 2008. Volkswagen kept its profit margins and achieved a hard roe of 12.5% in the last period, while the rest had less than 5% and even...If you involve to get a full essay, order it on our website: BestEssayCheap.com

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