Formulas

Current Assets
Current Ratio
Current Liabilites
Liquidity Ratio
Current Assets−Invetories
Acid Test
Current Liabilites
Total Debt
Debt to Equity
Shareholders Equity

Financial Leverage Total Debt

Debt to Total Asset
Ratio Total Assets
Long Term Debt
Total Capitalization Total Capitalization
Total Capitalization = Long Term Debt + Equity
EBIT
Coverage Ratios Interest Coverage
Interest Charges
Annual Net Credit Sales
Receivable Turnover
Reciveables
Average Collection Days∈Year
Period Reciveable Turnover
Annual Credit Purchases
Payable Turnover
Accounts Payable
Activity Ratios
Days∈Year
PT in Days
Payable Turnover
Cost of Goods Sold
Inventory Turnover
Inventory
Total Assets Net Sales
Turnover Total Assets
Gross Profit
Gross Profit Margin
Net Sales
Net Profit after Taxes
Net Profit Margin
Net Sales
Profitable Ratios
Net Profit after Taxes
Return on Investment
Total Assets
Net Profit after Taxes
Return on Equity
Shareholders Equity

Volkswagen Group
Values 2008 2009
Current Assets 76,163  77,776
Current Liabilities  64,802  69,534
Inventories’  17,816  14,124
Total Debt  167,919 177,178 
Shareholders’ Equity  35,011 35,281 
Total Assets  167,919 177,178 
Long Term Debt  65,729 70,215 
EBIT  12,108 8,005 
Interest Charges  3,879 3,928 
Annual Net Credit Sales  0 0 
Receivables  31,855 33,174
Annual Credit Purchases  0 0 
Accounts Payable  9,676 10,225 
Cost of Goods Sold  96,612 91,608 
Net sales  113,808 105,187 
Gross Profit  13,579 17,196 
Net Profit after Taxes  911 4,688 

Daimler Chrysler Group

Values 2008 2009
Current Assets 55,389  54,280 
Current Liabilities 52,128  47,538 
Inventories’ 2,717  4,232 
Total Debt 132,225  128,821 
Shareholders’ Equity 31,222  30,261 
Total Assets 132,225  128,821 
Long Term Debt 47,313  49,456 
EBIT 2,730  -1,513 
Interest Charges 65  -785 
Annual Net Credit Sales  0 0 
Receivables 5,285  6,999 
Annual Credit Purchases  0 0 
Accounts Payable 6,478  5,622 
Cost of Goods Sold 76,910  65,567 
Net sales 98,469  78,924 
Gross Profit 21,559  13,357 
Net Profit after Taxes 1,704  -2,644 

BMW Group
Values 2008 2009
Current Assets 16,619  17,571 
Current Liabilities 7,974  8,347 
Inventories 2,586  2,620 
Total Debt 23,316  24,647 
Shareholders’ Equity 1,991  2,001 
Total Assets 23,316  24,647 
Long Term Debt 10,004  10,946 
EBIT 395  605 
Interest Charges 0  0 
Annual Net Credit Sales 0  0 
Receivables 7,703  7,769 
Annual Credit Purchases 0  0 
Accounts Payable 1,276  1,548 
Cost of Goods Sold 37,833  32,676 
Net sales 44,313  37,980 
Gross Profit 6,480  5,301 
Net Profit after Taxes 384  202 

Toyota Group
Values million ¥ 2008 2009
Current Assets 12,086,227  11,298,929 
Current Liabilities 11,940,742  10,589,293 
Inventories 1,825,716  1,459,394 
Total Debt 32,458,320  29,062,037 
Shareholders’ Equity 11,869,527  10,061,207 
Total Assets 32,458,320  29,062,037 
Long Term Debt 7,991,384  7,872,007 
EBIT 70,229  -102,180 
Interest Charges 4,419  2,004 
Annual Net Credit Sales 0  0 
Receivables  4,301,142 3,891,406 
Annual Credit Purchases  0 0 
Accounts Payable  2,212,773 1,299,455 
Cost of Goods Sold  20,452,338 17,468,416 
Net sales  24,820,510 19,173,720 
Gross Profit  4,368,172 1,705,304 
Net Profit after Taxes  45,995 -68,388 

Volkswagen Group
2008 2009

Liquidity Ratio Current Ratio 1.17 1.11

 Acid Test 0.90 0.915

Debt to Equity 4.79 5.02

Financial Leverage Ratio

Debt to Total Asset 1 1

Total Capitalization 0.65 0.66

Coverage Ratios Interest Coverage 3.12 2.03

Receivable Turnover 0 0

Average Collection Period 0 0

Payable Turnover 0 0
Activity Ratios
PT in Days 0 0

Inventory Turnover 5.4 6.4

Total Assets Turnover 0.67 0.59

Gross Profit Margin 0.11 0.16

Net Profit Margin 0.008 0.044

Profitable Ratios
Return on Investment 0.005 0.026

Return on Equity 0.02 0.13

Daimler Chrysler Group

2008 2009

Liquidity Ratio Current Ratio 1.06 1.14

 Acid Test 1.00 1.05

Debt to Equity 4.23 4.25

Financial Leverage Ratio

Debt to Total Asset 1 1

Total Capitalization 0.60 0.62

Coverage Ratios Interest Coverage 42 -1.92

Receivable Turnover 0 0

Average Collection Period 0 0

Payable Turnover 0 0
Activity Ratios
PT in Days 0 0

Inventory Turnover 28.3 15.4

Total Assets Turnover 0.74 0.61

Gross Profit Margin 0.21 0.17

Net Profit Margin 0.02 -0.33

Profitable Ratios
Return on Investment 0.01 -0.02

Return on Equity 0.05 -0.8

BMW Group
2008 2009

Liquidity Ratio Current Ratio 2.08 2.10

 Acid Test 1.75 1.79

Debt to Equity 11.71 12.32

Financial Leverage Ratio

Debt to Total Asset 1 1

Total Capitalization 0.83 0.84

Coverage Ratios Interest Coverage 0 0

Receivable Turnover 0 0

Average Collection Period 0 0

Payable Turnover 0 0
Activity Ratios
PT in Days 0 0

Inventory Turnover 14.6 12.47

Total Assets Turnover 1.90 1.54

Gross Profit Margin 14.63 12.47

Net Profit Margin 1.90 1.54

Profitable Ratios
Return on Investment 0.016 0.008

Return on Equity 0.19 0.10

Toyota Group
2008 2009

Liquidity Ratio Current Ratio 1.01 1.06

 Acid Test 0.85 0.92

Debt to Equity 2.73 2.88

Financial Leverage Ratio

Debt to Total Asset 1 1

Total Capitalization 0.40 0.43

Coverage Ratios Interest Coverage 15.89 -50.98

Receivable Turnover 0 0

Average Collection Period 0 0

Payable Turnover 0 0
Activity Ratios
PT in Days 0 0

Inventory Turnover 11.20 11.96

Total Assets Turnover 0.76 0.65

Gross Profit Margin 0.17 0.08

Net Profit Margin 0.001 -0.003

Profitable Ratios
Return on Investment 0.001 -0.002

Return on Equity 0.003 -0.006

Contents
Sr.No Chapters Topics Page. No
What is Financial Analysis
01 Introduction Importance
History
02 Industry for Analysis Automobile
Economic condition (World Wide)
 Economic condition (Pakistan)
Growth of Industry (World Wide and Pakistan)
Companies (BMW, Daimler Chrysler, Volkswagen, Toyota)
Offices in Pakistan
Formulas
Analysis of BMW for year 2008, 2009.
Graphs for BMW Analysis.
Analysis of Daimler Chrysler for year 2008, 2009.
03 Financial Analysis Graphs for Daimler Chrysler Analysis.
Analysis of Volkswagen Group for year 2008, 2009.
Graphs for Volkswagen Group Analysis.
Analysis of Toyota for year 2008, 2009.
Graphs for Toyota Analysis.
Growth of BMW in 2009 w.r.f 2008.
Growth of Daimler Chrysler in 2009 w.r.f 2008.
04 Growth
Growth of Volkswagen Group in 2009 w.r.f 2008.
Growth of Toyota in 2009 w.r.f 2008.
Comparison 2009
Comparison 2008
05 Comparison
Graphs 2009
Graphs 2008
Critical Analysis of companies Ratios
06 Report Future Expectations
Best Company

i. References
ii. Appendix
 Financial Analysis of Automobile Industry 2009
Volkswagen Daimler Chrysler BMW Toyota

Current Ratio 1.11 1.14 2.10 1.06

Liquidity Ratio
Acid Test 0.915 1.05 1.79 0.92

Debt to Equity 5.02 4.25 12.32 2.88

Financial Leverage Ratio

Debt to Total Asset 1 1 1 1

Total Capitalization 0.66 0.62 0.84 0.43

Coverage Ratios Interest Coverage 2.03 -1.92 0 -50.98

Receivable Turnover 0 0 0 0

Average Collection Period 0 0 0 0

Activity Ratios
Payable Turnover 0 0 0 0

PT in Days 0 0 0 0
 Inventory Turnover 6.4 15.4 12.47 11.96

Total Assets Turnover 0.59 0.61 1.54 0.65

Gross Profit Margin 0.16 0.17 12.47 0.08

Net Profit Margin 0.044 -0.33 1.54 -0.003

Profitable Ratios
Return on Investment 0.026 -0.02 0.008 -0.002

Return on Equity 0.13 -0.8 0.10 -0.006

 Financial Analysis of Automobile Industry 2008
Volkswagen Daimler Chrysler BMW Toyota

Current Ratio 1.17 1.06 2.08 1.01

Liquidity Ratio
Acid Test 0.90 1.00 1.75 0.85

Debt to Equity 4.79 4.23 11.71 2.73

Financial Leverage Ratio

Debt to Total Asset 1 1 1 1

Total Capitalization 0.65 0.60 0.83 0.40

Coverage Ratios Interest Coverage 3.12 42 0 15.89

Receivable Turnover 0 0 0 0

Average Collection Period 0 0 0 0

Activity Ratios Payable Turnover 0 0 0 0

PT in Days 0 0 0 0

Inventory Turnover 5.4 28.3 14.6 11.20

 Total Assets Turnover 0.67 0.74 1.90 0.76

Gross Profit Margin 0.11 0.21 14.63 0.17

Net Profit Margin 0.008 0.02 1.90 0.001

Profitable Ratios
Return on Investment 0.005 0.01 0.016 0.001

Return on Equity 0.02 0.05 0.19 0.003

7

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 Toyota Group Analysis
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Financial Analysis of Automobile Industry for year 2009

-60
 Financial Analysis of Automobile Indutry for 2008
45

40

35

30

25

20

15

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Volkswagen Daimler Chrysler BMW Toyota

 Formulas
Current Ratio Current Assets / Current Liabilities
Liquidity Ratio
Acid Test (Current Assets – Inventories) / Liabilities
Debt to Equity Total Debt / Shareholder’s Equity
Financial Leverage
Debt to Total Asset Total Debt / Total Assets
Ratio
Total Capitalization Long Term Debt / Long Term Debt + Equity

Coverage Ratios Interest Coverage EBIT / Interest Charges

Receivable Turnover Annual Net Credit Sales / Receivables

Average Collection
Days in Year / Receivable Turnover
Period
Activity Ratios Payable Turnover
PT in Days
Inventory Turnover
Total Assets Turnover
Gross Profit Margin

Net Profit Margin

Profitable Ratios
Return on Investment

Return on Equity
 Formulas
Current Assets
Current Ratio
Current Liabilites
Liquidity Ratio
Current Assets−Inventories
Acid Test
Current Liabilites
Total Debt
Debt to Equity
Shareholders Equity

Financial Leverage Total Debt

Debt to Total Asset
Ratio Total Assets
Long Term Debt
Total Capitalization Total Capitalization
Total Capitalization = Long Term Debt + Equity
EBIT
Coverage Ratios Interest Coverage
Interest Charges
Annual Net Credit Sales
Receivable Turnover
Reciveables
Average Collection Days∈Year
Period Reciveable Turnover
Annual Credit Purchases
Payable Turnover
Accounts Payable
Activity Ratios
Days∈Year
PT in Days
Payable Turnover
Cost of Goods Sold
Inventory Turnover
Inventory
Total Assets Net Sales
Turnover Total Assets
Gross Profit
Gross Profit Margin
Net Sales
Net Profit after Taxes
Net Profit Margin
Net Sales
Profitable Ratios
Net Profit after Taxes
Return on Investment
Total Assets
Net Profit after Taxes
Return on Equity
Shareholders Equity