Volkswagen Group Financial Performance from Time to Time

Volkswagen Financial Performance from Time to Time- Volkswagen Group is a holding automotive company that has numerous brands of cars and motorcycles with has broad market around the world. Historically, this company was founded in Berlin, Germany on May 28th, 1937. As of now, this company has miscellaneous brands. These brands are Audi, Bentley, Cupra, Lamborghini, Porsche, SEAT, Škoda, and Volkswagen. Most of the brands are well-known brands and many people recognize their brands. Nowadays, the company has its central office in Wolfsburg, Germany

Along with the business development of Volkswagen Group, this company in 2021 can sell 8.5 million cars around the world. The Asia Pacific and Europe still become the main market, with 3.7 million sales of vehicles in Europe and the Asia Pacific with 3.5 million vehicles. Based on the Workforce, the company employs around 313,010 people. Based on the business line, this group has two main divisions, namely the Automotive division, and financial service. The automotive division produces manufacture, and sell passenger and commercial vehicle (cars, trucks, motorcycles) engineering business, vehicle software, and spare part for the vehicle. Meanwhile, the financial service division comprises dealer and customer financing, leasing of vehicles, insurance, and mobility service.

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The Assets, Liabilities, and Equities of Volkswagen Group

Years	Assets	Liabilities	Equities
	Million Euro	Million Euro	Million Euro
2009	177,178	139,748	37,430
2010	199,393	150,681	48,712
2011	253,769	190,415	63,354
2012	309,644	227,819	81,825
2013	324,333	234,296	90,037
2014	351,209	261,011	90,198
2015	381,935	293,665	88,270
2016	409,732	316,822	92,910
2017	422,193	313,116	109,077
2018	458,156	340,814	117,342
2019	488,071	3644,20	123,651
2020	497,411	368,628	128,783
2021	528,609	382,455	146,154
Source : Volkswagen Group Annual Report, 2010-2022

Based on the financial structure of the company, in the balance sheet performance from 2009 to 2021. This company has grown in assets and equities. The assets of the company in 2009 is just 177,178 million euros and in 2021, it becomes 528,609 million Euro. In the other variable, the equities of the company are also in the positive pathway. The equities of the company in 2009 is 37,430 million euros, and it grows to 146,154 million euros.

Based on the financial ratio of Debt-to-Equity ratio and Debt to asset ratio, the ratio between liabilities and assets is 0,74. It means that the percentage of liabilities is 74% of assets and the rest of it is equities. Meanwhile, the ratio between debt and equity ratio is about 3.0. It means that the debts/liabilities are three times more than the equities.

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The Revenue and Net Income of Volkswagen Group

Years	Revenue	Net Income
	Million Euro	Million Euro
2009	105,875	911
2010	126,875	7,226
2011	159,337	15,799
2012	192,676	21,884
2013	197,007	9,145
2014	202,458	11,068
2015	213,292	-1,361
2016	217,267	5,379
2017	229,500	11,463
2018	235,849	12,153
2019	252,632	14,029
2020	222,884	8,824
2021	250,200	15,428
Source : Volkswagen Group Annual Report, 2010-2022

Based on the financial and business performance, the company has had positive performance around in two decades from 2009 to 2021. The revenue in 2009 is just 105 billion Euro and becomes 250 billion euro. Meanwhile, the net income of the company is also a tremendous performance. In 2009, the net income is just 911 million Euros and grows to 15.4 billion Euro. From 2009 to 2021, Volkswagen group experience loss conditions in 2015 with 1.3 billion Euro. For the rest of the years, except 2015, the Volkswagen group experienced positive performance with gaining the profit/ net income.

Based on the Net profit margin (NPM), the ratio between revenue and net income is about 5%. It means that the revenue of the company becomes profit is about 5%. In other interpretations, 1 Euro of Revenue can become a net income of around 0.05 Euro. Meanwhile, based on the Return of Assets (ROA), the average value of ROA is 2 %. Meanwhile, the Return of Equity (ROE), the average value of the company, is about 11.2%. This NPM, ROA, and ROE can describe the efficiency of a company doing its business. The more value of the Ratio of them, the more efficient of the company in generating the net income/profit.

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Bibliography of Volkswagen Financial Performance from Time to Time

Wikipedia. 2022. Volkswagen Group. Accessed via https://en.wikipedia.org/wiki/Volkswagen  on April 22nd, 2022

Volkswagen AG.2022. Annual Reports. Accessed via https://www.volkswagenag.com/en/InvestorRelations/news-and-publications/Annual_Reports.html  

on April 23rd, 2022