Posted: September 10th, 2023

Initial Financial Analysis for Daimler Group

Financial Analysis for Daimler Group
The revenues of the company are obtained from the sale of premium cars globally. In 2016: 2024 – Do my homework – Help write my assignment online, the company was able to generate EUR155bn in total revenues. The main division of the company was Mercedes-Benz which accounts for 56% of the overall revenues in 2016: 2024 – Do my homework – Help write my assignment online. It is one of the largest manufacturers of commercial trucks in the world. The revenues from the sale of commercial trucks account for 20% of the overall revenues, while vans and businesses and financial services account for 11% and 14% of the revenues respectively (Ketschau, 2013). From 2007, the total revenues of the company from the sale of cars have been increasingly gradually, and the revenue trend is expected to continue for the next three years.
Daimler Group was developing innovative programs which were critical. The company invested in the development of new vehicle designs which are fuel efficient and environmentally friendly. The new developments were also focused on creating new safety technology and digital networking of the manufactured products (Zeff, 2013). Among all the developments, the projects for new Mercedes-Benz car models were useful including new SUVs, and modern compact cars. They also sought to develop low emission car engineers and innovative safety technology. For example, in 2015 – Research Paper Writing Help Service, the company invest EUR4.7bn on research development on Mercedes-Benz.
The developments were keen on producing new heavy and medium duty engineers to improve on the existing car products. Other expenditures of the company were on vans that sought to promote the continuous product enhancement measures, and the creation of new mid-size pickups (Jermakowicz, Reinstein, & Churyk, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay). Finally, Daimler Group invested its resources in developing the existing buses including the fulfillment of emissions guidelines and standards and drive systems.
The capital for the development of the products was coming from credit loans and investment refinancing activities. From 2013, the company relied on an EUR9bn syndicated credit loan with international banks with around five years. The credit loan was useful and offered a high level of flexibility. In 2015 – Research Paper Writing Help Service, the company was able to extend the credit facility which is useful for financing the developments. Most importantly, Daimler Group used short and long term credit loans amounting around EUR 17.5bn (Ketschau, 2013). Other sources of capital for the developments in the company includes the notes and bonds, commercial paper, and deposit from direct banking businesses.
As indicated in the consolidated report, the performance activity and investor communication show the financial performance of the company. For example, it shows that recently, the revenues of the company grew by 3.7%. It was a decline in revenue growth compared to 15/1% revenue growth in 2015 – Research Paper Writing Help Service. The earnings per share of the company also reduced from EUR28.3 per share to EUR6.4 per share. However, the gross profit margin ratio of the company remained fairly the same at 21.3% (Jermakowicz et al., 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay). In terms of liquidity, the investor communication presents a balance sheet analysis report indicating that the networking capital of the company improved from EUR 1,066 to EUR 2,271. It indicates that the ability of the company to pay its current debt improved significantly over the last one years.
The report also shows the stock analysis and performance of the company stocks in the last few years. The stock price has remained fairly the same over the last three years. It shows that the company is yet to expand and gain significant investor confidence. Based on the stock analysis, it recommends that the investors should buy Daimler stocks at around EUR67.65 per share (Zeff, 2013). The report also presents clear communication about the financial and stock performance of the company. As a result, the investor communication is critical in presented detailed analysis of the financial aspects of the company.

References
Jermakowicz, E. K., Reinstein, A., & Churyk, N. T. (2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay). IFRS framework-based case study: DaimlerChrysler–Adopting IFRS accounting policies. Journal of Accounting Education, 32(3), 288-304.
Ketschau, T. (2013). Mercedes Benz Cars Germany-Market Analysis. Munich: GRIN Verlag.
Zeff, S. A. (2013). The objectives of financial reporting: a historical survey and analysis. Accounting and Business Research, 43(4), 262-327.

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