3rd ICAI 2024

International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

3. Analysis of Selected Financial Indicators of Volkswagen Group, Tesla and Toyota Motor Corporation The analysis of selected financial indicators of Volkswagen Group, Tesla, and Toyota Motor Corporation presents selected metrics crucial for evaluating the financial health and performance of these automotive giants. By focusing on a diverse range of financial indicators, this subchapter aims to provide a nuanced understanding of each company’s financial standing within the competitive automotive industry. Through examination and comparison of these indicators over a specified period, insights into the relative strengths, weaknesses, and strategic positioning of Volkswagen Group, Tesla, and Toyota Motor Corporation will be elucidated. The operating profit margin, a fundamental financial metric, provides insight into the operational efficiency and profitability of a company. It is calculated by dividing the operating income (or operating profit) by the total revenue and expressed as a percentage. This metric reflects the proportion of revenue that translates into operating profit after accounting for the cost of goods sold and operating expenses. Analyzing the operating profit margin of selected companies over the last ten years (see Figure 1) offers a longitudinal perspective on their ability to generate profits from core business operations. Fluctuations in the operating profit margin can indicate changes in cost structures, pricing strategies, efficiency improvements, or shifts in market conditions. A consistent or improving margin suggests effective cost management and operational performance, while a declining margin may signal challenges such as rising expenses, pricing pressures, or declining sales volumes. By examining trends in the operating profit margin of Volkswagen Group (with the exception of 2016 attributable to Dieselgate) and Toyota Motor Corporation over the past decade, we see positive and relatively stable development, whereas by Tesla the business model has been stabilizing over time by reaching and maintaining operating profitability from 2020 onwards.

Figure 1: Operating profit margin of selected companies in the last ten years

Source: Authors’ calculations based on Macrotrends (2024a, 2024b, 2024c) The assets turnover ratio is a key financial metric used to assess how efficiently a company utilizes its assets to generate revenue. It is calculated by dividing the total revenue by the average total assets and is typically expressed as a ratio or percentage. This ratio indicates the company’s ability to generate sales from its investments in assets

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