Valuation of Bmw

6083 WordsDec 4, 201025 Pages
| Valuation BMW Group | BUSM31 – Strategic Financial Management | 2010-10-27 | Group 14 | | | Tutor: Authors: Måns Kjellsson Daniel Hedevåg Jonas Karlsson Mathias Ljungberg Jakob Tuvehjelm Background BMW is one of the ten largest automobile manufacturers in the world, with an annual production of 1.3 million cars (2009). It is furthermore one of the leading manufacturers in the premium car segment. BMW Group brand portfolio includes in addition to the BMW brand itself the Mini and Rolls Royce motorcars. The Mini brand is a remain from 1994 when BMW bought Rover and Rolls Royce was acquired in 1998 after a few years of engine cooperation. Besides the production of automobiles BMW is a well…show more content…
Worth noticing is how Toyota outperforms most competitors until 2009 when they instead showed the poorest operating margin. For all compared companies, 2009 is the worst year and only VW and BMW are able to generate a positive OM. Operating Margin | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | BMW | 8,4% | 8,1% | 8,3% | 7,5% | 1,7% | 0,6% | Daimler | 2,7% | 1,5% | 1,4% | 7,9% | 5,4% | -1,9% | Volkswagen | 1,8% | 2,9% | 1,9% | 5,6% | 5,6% | 1,8% | Toyota | 9,6% | 9,0% | 8,9% | 9,3% | 8,6% | -2,2% | When comparing the Inventory Turnover, Toyota is outstanding in its performance just as known to be. BMW had the second highest inventory turnover in 2009, which has improved continuously throughout the measured time (worst in 2004). For Daimler and Volkswagen the trend is instead negative. Inventory Turnover | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | BMW | 5,60 | 5,54 | 5,65 | 6,20 | 6,06 | 6,55 | Daimler | 7,22 | 6,86 | 8,80 | 4,73 | 7,82 | 4,41 | Volkswagen | 6,80 | 6,86 | 7,26 | 7,00 | 6,07 | 5,74 | Toyota | 13,14 | 12,51 | 11,62 | 11,21 | 11,82 | 11,28 | The cash-conversion cycle within the industry is extremely volatile. Toyota, known for its excellent logistics, has been able to outperform most competitors. For BMW the figure is bleak although Daimler is in serious trouble with 117 days in its conversion cycle. Cash-conversion-cycle | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | BMW | 47,20 | 46,46 | 45,63 | 44,60 | 52,18 |
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