BMW Essay -- essays research papers

BMW and Audi, two German automobile manufacturers, have a reputation for making some of the best cars in the industry. Not sole(prenominal) are both companies superior in their production, but their financial statements in addition indicate stability and efficiency. Looking at financial ratios, we will equalize both companies on a basis of charge efficiency and debt status. As a bank analyst, we will make a recommendation as to which company would be better to approve a bring for. A recommendation will alike be made regarding prudence effectivity and which company would make a better investment funds.BMW has captured the attention of automobile drivers from completely around the world with their Ultimate Driving Machine. The BMW Company was originally realized in Germany and has extended nationally reaching all over 12 countries. With Germany and the joined States being the top two target countries, BMW has established their products as a combination of luxury, safety, and comfort with product agate lines to suit all styles of living. Revenues have been increase each year since before 1996 with profits coming from product line of automobiles and motorcycles. In 2001, BMW came out with a new product group, the Mini. The Mini also contributed to the revenue increase in 2001. BMW has current developments in their sports cars, the Z8. BMW has created a reliable name for the automobiles they produce and has all the potential to continue their success in the future.Audi, one of Germanys first automobile producers, has been designing and building cars since prideful Horch, its founder, completed his first car in 1901. Over the years following, a series of innovations and mergers have led Audi to the position it is in today. Audis subsidiaries imply companies to facilitate international operations, part manufacturers, a vehicle customization company, a technology research company, and Lamborghini Corp, a successful sports car manufacturer. Audis current developments include its holding the EU Seal of Environmental Protection, and a number of technical advancements, including new car designs and a seeing car technology that has been put forward for the German Future award for Technology and Innovation. BMWAudiProfitability RatiosReturn on Equity... ...reflects this. This again shows BMWs little efficient apostrophize management than Audi. Through Dupont analysis, we have been able to see the specific strengths and weaknesses of BMW and Audis management. BMWs lower profit margin and summation turnover indicate less efficient cost management and asset management. Their debt multiplier indicates that theyre winning advantage of debt, but the benefit of this isnt realized because of their problems with cost and asset management. Due to Audis more efficient use of their assets, and better cost efficiency, it can be said that their management has performed better than BMWs over the past year. BMW and Audi both build cars that have a reputation for security, dependableness and quality. These traits transcend into their financial statements, making both of them a good investment ascribable to their debt status, and management effectiveness. Our recommendation as a bank loan analyst would be for BMW due to its superior liquidity and low risk. When evaluating management performance for equity investment, Audi is clearly a better investment. This is primarily due to its superior asset management, debt allocation, and inventory management.