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.
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.
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.
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