BMW Essay -- essays research papers

BMW and Audi, two German automobile manufacturers, have a temperament for making some of the best cars in the industry. Not only ar both(prenominal) companies first-class in their production, but their financial statements also signalize stability and efficiency. Looking at financial ratios, we will compare both companies on a basis of management efficiency and debt status. As a bank psychoanalyst, we will make a testimonial as to which partnership would be better to approve a loan for. A recommendation will also be made regarding management effectiveness and which go with would make a better investment.BMW has captured the attention of automobile drivers from all approximately the world with their Ultimate Driving Machine. The BMW Company was originally established in Germany and has extended nationally r distributivelying over 12 countries. With Germany and the United States world the top two target countries, BMW has established their products as a combining of luxury, s afety, and comfort with product lines to suit all styles of living. Revenues have been increasing each year since before 1996 with profits coming from product line of automobiles and motorcycles. In 2001, BMW came out with a smart product group, the Mini. The Mini also contributed to the revenue enhancement increase in 2001. BMW has current developments in their sports cars, the Z8. BMW has created a trustworthy attain for the automobiles they produce and has all the potential to continue their success in the future.Audi, unity of Germanys first automobile producers, has been designing and building cars since August Horch, its founder, accomplished 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 include companies to alleviate international operations, part manufacturers, a vehicle customization company, a technology investigate company, and Lamborghini Corp, a successful spo rts car manufacturer. Audis current developments include its dimension the EU Seal of Environmental Protection, and a number of technological advancements, including new car designs and a seeing car technology that has been nominated for the German Future award for Technology and Innovation.      BMW     AudiProfitability Ratios          Return on fair-mindedness ... ...reflects this. This again shows BMWs less in force(p) cost management than Audi. done Dupont analysis, we have been able to see the specific strengths and weaknesses of BMW and Audis management. BMWs note profit margin and asset turnover indicate less efficient cost management and asset management. Their debt multiplier indicates that theyre taking expediency of debt, but the benefit of this isnt realized because of their problems with cost and asset management. cod to Audis more efficient use of their assets, and better cost efficiency, it lot be said that their management has performed better than BMWs over the past(a) year. BMW and Audi both build cars that have a reputation for security, reliability and quality. These traits go along into their financial statements, making both of them a good investment due 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 exercise for equity investment, Audi is clearly a better investment. This is primarily due to its superior asset management, debt allocation, and inventory management.