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Bmw Ag

In: Business and Management

Submitted By ahasan1
Words 2127
Pages 9
2015

BMW AG
FINANCIAL MANAGEMENT

Company Background
Bayerische Motoren Werke Aktiengesellschaft (BMW Group) is a worldwide manufacturer of automobile and motorcycles headquartered in Munich, Germany. Having been established in 1916,
BMW group has diversified its portfolio of offerings, currently divided into three segments: Automotive,
Motorcycles and Financial Services. The automotive segment, the largest of the three, manufactures, assembles and sells vehicles under the BMW, Mini and Rolls Royce brands. With being a worldwide operator, having 22 production and assembly plants, 34 sales subsidiaries and extensive Research and
Development Networks, BMW group has been benefiting from increased sales quantities over the previous years in addition to an upward sloping trend in its share price and dividend payouts.

Analysis of Financial Statements

*figures expressed in millions of USD

BMW Group, in 2014, has reported a 7.9% increase in sales volume over the previous year, with a total 2,117,965 units sold throughout the period. Revenues as of 2014 is $85,202.5m, a 5.7% increase over the previous year ($80,601.2m), and a total increase in revenues since 2011
($72,931m) of 16.83%. Although BMW may appear to have considerably high financial risk, as the current ratio remains at about 1 throughout the years, and the quick ratio ranges from a high of
0.843 in 2012 to a low of 0.775 in 2014, BMW Group’s operating profits, remaining in the steady 10 percentile range over the years, is adequate enough to cover BMW’s short-term liabilities and obligations. The fixed asset turnover, measuring the efficiency in utilizing assets to generate sales, is seen to increase between 2011 and 2012 (going from 6.43 to 7.16), however decreases in the more recent 2 years (5.15 and 4.77 respectively), implying that a previous $1 of fixed assets provided a…...

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