Volkswagen and Mercedes Benz Essay Example | Topics and Well Written Essays - 2000 words

Volkswagen and Mercedes Benz - Essay Example For the third quarter the company posted net profit of â‚ ¬7.146 billion which is three times higher than the profit figure in the same quarter of the last year. The astounding company results are attributed to its investment in new products, manufacturing operations in the emerging markets like China. The company plans to invest heavily in developing markets simultaneously consolidating its position in developed regions such as Europe and Americas. (IHS global 2011) The following table represents year wise consolidated income statement of the company. Figures in Millions of Euros Items Dec 31, 2007 Dec 31, 2008 Dec 31, 2009 Dec 31, 2010 Total Revenues 108,897.0 113,808.0 105,187.0 126,875.0 Cost of Goods Sold 83,593.0 87,862.0 81,899.0 94,050.0 Gross Profit 16,399.0 16,250.0 12,733.0 20,742.0 Operating Expenses, Total 10,142.0 11,431.0 12,648.0 13,868.0 Operating Income 6,257.0 4,819.0 85.0 6,874.0 Net Interest Expense 413.0 344.0 -781.0 -626.0 EBT, Excluding Unusual Items 7,665. 0 6,688.0 863.0 7,956.0 Income Tax Expense 2,421.0 1,920.0 349.0 1,767.0 Net Income 4,120.0 4,753.0 960.0 6,835.0 Source: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=VOW:GR Balance Sheet of Volkswagen Figures in Millions of Euros Assets Dec 31, 2007 Dec 31, 2008 Dec 31, 2009 Dec 31, 2010 Total Cash And Short Term Investments 15,638.0 11,394.0 21,890.0 22,794.0 Total Receivables 8,902.0 11,372.0 10,871.0 12,811.0 Total Current Assets 68,516.0 76,163.0 77,776.0 85,936.0 Plant And Equipment 25,689.0 30,030.0 31,745.0 34,550.0 Total Assets 145,357.0 167,919.0 177,178.0 199,393.0 Figures in Millions of Euros Liabilities Dec 31, 2007 Dec 31, 2008 Dec 31, 2009 Dec 31, 2010 Accounts Payable 8,202.0 9,085.0 9,734.0 11,628.0 Other Current Liabilities, Total 14,620.0 15,330.0 14,911.0 17,043.0 Total Current Liabilities 56,068.0 64,802.0 69,534.0 76,899.0 Long-Term Debt 3,645.0 2,240.0 9,272.0 8,989.0 Pension & Other Post-Retirement Benefits 12,481.0 12,82 9.0 13,793.0 15,265.0 Deferred Tax Liability Non-Current 2,637.0 3,654.0 2,224.0 1,669.0 Other Non-Current Liabilities 12,775.0 15,863.0 17,061.0 19,522.0 Total Liabilities 113,419.0 130,531.0 139,748.0 150,681.0 Total Common Equity 31,875.0 35,011.0 35,281.0 45,978.0 Total Liabilities & Equity 145,357.0 167,919.0 177,178.0 199,393.0 Source: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=VOW:GR&dataset=balanceSheet&period=A¤cy=native Cash Flow Statement (Figures in Millions of Euros) Details Dec 31, 2007 Dec 31, 2008 Dec 31, 2009 Dec 31, 2010 Net Income 4,120.0 4,753.0 960.0 6,835.0 Depreciation & Amortization, Total 6,427.0 6,738.0 4,900.0 5,058.0 Cash From Operations 15,662.0 2,702.0 12,741.0 11,455.0 Cash From Investing -15,812.0 -11,183.0 -9,675.0 -11,048.0 Total Debt Issued 9,609.0 17,477.0 16,998.0 7,910.0 Total Debt Repaid -8,524.0 -8,485.0 -10,225.0 -12,069.0 Total Dividend Paid -497.0 -720.0 -779.0 -755.0 Cash From Financing 787.0 8 ,123.0 5,536.0 -852.0 Net Change in Cash 547.0 -471.0 8,792.0 -8.0 Source: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=VOW:GR&dataset=cashFlow&period=A¤cy=native Financial Analysis It will be interesting to analyze the company’s financials from stakeholder’s point of view as the company’s progress in last few years has been exemplary and how the stakeholders can see the Key

(Continuous Uncertainty) Assignment Example | Topics and Well Written Essays - 750 words - 1

(Continuous Uncertainty) - Assignment Example However, some idealistic assumptions with some faith are also incorporated while formulating forecasted cash flows as the future is unpredictable and things can move onto the right desired track as well. In the current Dhahran Roads project, while formulating the assumptions, special care has been taken in respect of the assumptions on which the cash flows are forecasted. However, in the following paragraphs, the rationales for setting out these assumptions are outlined. Negotiations with the Transportation Ministry of the municipality of Dhahran have been finalized. According to the terms and conditions set out with the Ministry, 80% of the billing amount would be paid by the ministry as soon as the bill received by the ministry. So the element of potential delay in the payment schedule is kept minimized. Still there is a risk involved if delays come across in the payments made by the government resulting in adverse movement in the forecasted Net Present Value. So far as likelihood of overrun cost is concerned, it has been assured that the best possible estimates of overheads and other expenses are maintained. Since there seems to be â€Å"no unusual challenges† to be faced during the project life, therefore the possibility of cost overrun will likely to be at its minimum. Loss of retention looks to be one of the most critical assumption as there is exactly no surety whether the accumulated retention fund payments would be made at the end of 1997 and 1998 respectively into two equal installments by the ministry or not. The reason behind this uncertainty is that after the completion of the project, if the ministry is not satisfied with quality of project, this accumulated retention fund can be revoked by the ministry. This is kind of a negative reinforcement measure that can be taken against SADE in order to maintain the minimum requirement for quality assurance of the project. In case if the loss of retention arises, it would certainly