3rd ICAI 2024

International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

The Financial Performance of Leading Global Automobile Manufacturers Romana Čižinská 1 , Tomáš Krabec 2 Škoda Auto University 1, 2 Department of Finance and Accounting Na Karmeli 1457, Mladá Boleslav, 293 01 Czech Republic e-mail: romana.cizinska@savs.cz 1 , tomas.krabec@savs.cz 2

Abstract The paper aims to compare the financial performance of the world’s leading automobile manufacturers using publicly available data, with a primary focus on annual reports. The core methodology employed involves interpreting selected financial ratios that represent various aspects of financial health. The main objective is to identify key differences in these companies’ financial performance over time, analyze the underlying causes, and interpret the findings. The results not only shed light on the current financial status of these major players in the global automotive industry but also offer insights into their operational strengths and weaknesses. This study contributes a valuable piece to the mosaic of crucial information necessary for investors, stakeholders, and industry analysts to understand the financial dynamics and competitive landscape of the automotive sector. Keywords: automotive industry, comparative study, financial performance, ratio analysis JEL Classification: 3-5 G32, L62, M41 1. Introduction In a world that is constantly evolving and adapting to new technologies and global challenges, the automotive industry stands at the forefront of innovation and change. Automakers are now under intense scrutiny as they navigate an environment filled with regulations, technological advancements, and growing demands for more sustainable transportation solutions. Historical development indicates a fascinating shift in financial and innovation power – from the dominance of the United States at the dawn of the automotive era, through the rise of Europe (especially Germany) with its emphasis on engineering and design, to the current rapid ascent of China as a key player in the automotive industry. On a global scale, China holds the position as the foremost automobile market, excelling in both the creation and consumption of vehicles. According to Statista (2024a), Mainland China has recently the highest revenue in the automotive industry. China’s automobile registrations climbed to approximately 25.8 million units in 2023 (followed by the United States with 15,5 million units and by Europe with 12.85 million units of new car registrations). This shift is a consequence of China embracing its role as a leading innovator in electromobility and smart technologies, affecting global markets and competitive dynamics. According

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