Who is Stronger? German Stock Exchange Xetra or BMW? – The Case of 2014

Abstract

The automobile industry today is the most lucrative industry. In this paper, we ask whether the BMW, one of the automaker giant, could retain its’ profitability in 2014. The results are extremely robust to alternative model specifications. It also affected by the recession but cannot lose the profitability in 2014. This interesting thing inspires me to conduct research on the financial performance of BMW AG. Xetra is gowing up and down in 2014. In the beginning of my paper I give an overview on the BMW. Later I analyze the net profit, sales revenue, costs and assets base of the corporation for the Q1 in 2014. Then I go for ratio analysis to judge the financial health of the organization. In ratio analysis I use Return of Assets (ROA), Return on Equity (ROE), Basic Earning Power (BEP), Liquidity ratio, Profitability Ratio, Divided Payout (DP) Ratio and Du Pont Chart to conduct my analysis. The findings on the analysis are discussed along with the respective chapter, besides making separate chapter for it.

Keywords: Stock Prices, Xetra, BMW