Professional Documents
Culture Documents
DETAIL
Content
Introduction
Body
-
Balance sheet
Common-size statement
PAGE
1
2-3
4-29
Page 1 of 45
Conclusion
4.0
References
30
5.0
Coursework
31-38
Page 1 of 45
Page 2 of 45
Hyundai
The Hyundai Motor Company is a South
Korean multinational automotive manufacturer headquartered in Seoul, South Korea.
The company was founded in 1967 and, along with its 32.8% owned subsidiary, Kia
Motors, together comprise the Hyundai Motor Group, which is the world's fifth largest
automaker based on annual vehicle sales in 2012. [needs update] In 2008, Hyundai
Motor (without Kia) was ranked as the eighth largest automaker. As of 2012, the
Company sold over 4.4 million vehicles worldwide in that year, and together with Kia
total sales were 7.12 million. Hyundai is currently the fourth largest vehicle
manufacturer in the world. Hyundai operates the world's largest integrated automobile
manufacturing facility in Ulsan, South Korea, which has an annual production capacity
of 1.6 million units. The company employs about 75,000 people worldwide. Hyundai
vehicles are sold in 193 countries through some 6,000 dealerships and showrooms.
Valksvagon
Volkswagen is a German automobile manufacturer headquartered in Wolfsburg, Lower
Saxony, Germany. Volkswagen is the top-selling and original marque of
Page 3 of 45
the Volkswagen Group, the biggest German automaker and the second largest
automaker in the world.
3.0 Body
3.1 Balance Sheet (1) Toyota
Page 4 of 45
Page 5 of 45
Page 6 of 45
(2) Honda
Page 7 of 45
Page 8 of 45
(3) Hyundai
Page 9 of 45
Page 10 of 45
Page 11 of 45
(4) Volkswagen AG
Page 12 of 45
Page 13 of 45
2010
ending
Balance sheet
Cash
1.87T
2011
6.2
%
2.08T
2012
7.0
1.68T
2013
5.5 %
1.72T
4.8 %
Page 14 of 45
Short-term
2.19T
7.2
1.43T
4.8
1.26T
4.1 %
1.55T
4.4 %
Investments
Total
6.46T
%
21.3
5.89T
%
19.8
6.52T
21.3
7.52T
21.2
current
receivable
Inventories
1.42T
4.7
1.3T
4.4
1.62T
5.3 %
1.72T
4.8 %
Other
1.14T
%
3.8%
1.12T
%
3.8
1.24T
4.0 %
1.28T
3.6 %
6.24T
20.4
6.85T
19.3
current
assets
Net
%
6.71T
Property,
22.1
6.31T
21.2
%
Plant &
Equipment
Total
4.14T
13.6
Investment
Long term
5.7
%
18.8
Note
Receivable
Other assets
608.38
2.0
542.98
1.8
368.99
1.2 %
469.62
1.3 %
Total asset
B
30.35T
%
100
B
29.82T
%
100
B
30.65T
100
B
35.48T
100%
10.69T
%
35.2
10.79T
%
36.2
11.78T
%
38.4
12.91T
36.4
Total
Current
5.4T
5.62T
18.1
5.97T
19.5
7.28T
20.5
%
18.8
5.66T
%
18.5
7T
%
19.7
Page 15 of 45
Liabilities
Long-Term
7.02T
23.1
Debt
Provision
678.68
%
2.2%
Charges
Deferred
690.6B
6.45T
59.2
668.02
%
2.2%
6.04T
19.7
708.4B
%
2.3%
B
2.3%
691.28
817.03
2.7%
1.29T
3.6%
0.6%
B
143.35
0.5%
308.08
0.9%
B
19.58T
63.9
B
22.71T
64.0
12.77T
%
36.0
35.48T
%
100%
225.32
0.7%
Liabilities
Total
B
19.42T
64.0
B
18.9T
63.4
Liabilities
Total Equity 10.93T
%
36.0
10.92T
%
36.6
11.07T
%
36.1
Liabilities
%
100
29.82T
%
100
30.65T
%
100%
766.11
%
2.2%
2.3%
B
179.78
&
20.7
Taxes
Other
30.35T
7.34T
Shareholder
s' Equity
Page 16 of 45
(2) Honda
Period
2010
2011
2012
2013
ending
Balance sheet
Cash
1.12T
9.6%
1.28T
11.1%
1.25T
10.%
1.21T
8.9%
Short-term
1.89B
0.02
1.7B
0.01%
3.74B
0.3%
3.1B
0.00
1.98T
%
17.0
2.25T
%
16.5
Investments
Total
current
1.92T
16.6%
1.89T
16%
receivable
Inventories
936.98
8.0%
900.6B
7.8%
1.04T
8.8%
1.22T
8.9%
Other
B
571.32
4.9%
589.96
5.1%
557.76
4.7%
649.42
4.8%
current
assets
Net
3.39T
Property,
B
29.1
3.3T
B
28.5%
3.45T
B
29.3
4.24T
31.1
%
Plant &
Equipment
Total
641.16
Investment
Long term
B
2.36T
5.5%
638.77
20.3
B
2.35T
5.5%
622.33
20.3%
B
2.37T
5.3%
666.66
4.9%
20.1
B
2.79T
20.5
Page 17 of 45
Note
Receivable
Other assets
408.19
3.5%
434.62
Total asset
B
11.63T
Total
3.42T
Current
3.8%
425.71
100
B
11.57T
%
29.4
3.57T
3.6%
475.17
3.5%
100%
B
11.78T
100
B
13.64T
100
30.9%
3.58T
%
30.4
4.1T
%
30.1
Liabilities
Long-Term
2.31T
19.9
2.04T
17.6%
2.24T
19.0
2.71T
19.9
Debt
Provision
699.92
%
6.0%
640.96
5.5%
664B
%
5.6%
727.05
%
5.3%
Charges
Deferred
195.51
Taxes
Other
B
336.72
2.9%
Liabilities
Total
B
7.17T
61.7
4.46T
%
38.3
4.58T
%
100
11.57T
Shareholder
Liabilities
Total Equity
B
1.7%
312B
B
2.7%
344.55
2.9%
488.63
3.6%
2.3%
B
247.41
2.1%
B
287.16
263.19
2.1%
B
6.99T
60.4%
B
7.25T
61.5
B
8.44T
61.9
39.6$
4.53T
%
38.5
5.2T
%
38.1
%
100%
11.78T
%
100
13.64T
%
100
s' Equity
Page 18 of 45
(3) Hyundai
Period
2010
2011
2012
2013
ending
Balance sheet
Cash
6.22T
6.6%
6.23T
5.7%
6.76T
5.7%
6.87T
5.1%
Short-term
7.55T
8.0%
9.53T
8.1%
12.48T
10.3
15.35T
11.5
Investments
Total current
22.99T
24.3
25.72T
23.5
26.84T
%
22.1
27.81T
%
20.8
5.49T
%
5.8%
6.24T
%
5.7%
6.77T
%
5.8%
7.07T
%
5.3%
receivable
Inventories
Page 19 of 45
Other current
1.27T
1.3%
1.21T
1.1%
2T
1.6%
1.75T
1.3%
21.12T
22.3
24.82T
22.7
28.57T
23.5
32.03T
24%
17.51T
13.1
20.93T
%
15.7
assets
Net Property,
Plant &
Equipment
Total
Investment
Long term
%
9.31T
17.25T
Note
9.8%
18.2
%
13.88T
12.7
18.47T
%
16.9
%
14.99T
12.3
19.43T
%
16.0
Receivable
Intangible
2.65T
2.8%
2.66T
2.4%
2.88T
2.4%
3.13T
2.3%
Assets
Other assets
275.45
0.3%
266.99
0.2%
326.73
0.3%
452.89
0.3%
Total asset
B
94.71T
100
B
109.48
100
B
121.54
100
B
133.42
100
31.45T
%
33.2
T
33.16T
%
30.3
T
32.84T
%
27%
T
31.92T
%
23.9
Total
Current
Liabilities
Long-Term
Debt
Provision for
%
22.74T
4.88T
2.9%
5.2%
%
27.17T
24.8
5.61T
%
5.1%
%
30.53T
25.1
6.06T
%
5.0%
34T
25.5
5.51T
%
4.1%
Risks &
Page 20 of 45
Charges
Deferred
324.73
0.3%
1.02T
0.9%
1.87T
1.5%
2.83T
2.1%
Taxes
Other
B
1.85T
2.0%
1.74T
1.6%
1.83T
1.5%
2.05T
1.5%
Liabilities
Total
61.83T
68.5
69.15T
63.2
73.62T
60.6
76.84T
57.6
Liabilities
Total Equity
32.89T
%
34.7
40.33T
%
36.8
47.92T
%
39.4
56.58T
%
42.4
Liabilities &
94.71T
%
100
109.48
%
100
121.54
%
100
133.42
%
100
Shareholders'
Equity
(4) Volkswagen AG
Period
2010
2011
2012
2013
ending
Page 21 of 45
Balance sheet
Cash
18.67B
9.4%
18.29B
7.2%
18.49B
6.0%
23.18B
7.1%
Short-term
6.42B
3.2%
8.41B
3.3%
10.53B
3.4%
12.35B
3.8%
Investments
Total
43.21B
21.7
51.38B
20.2
55.37B
17.89
58.01B
17.9
current
receivable
Inventories
17.63B
9.8%
27.55B
10.9
28.67B
9.26%
28.65B
8.8%
Other
0%
%
0%
4.06B
1.31%
4.39B
1.4%
37.66B
18.9
48.5B
19.1
59.46B
19.2%
64.65B
19.9
current
assets
Net
Property,
Plant &
Equipment
Total
21.88B
11%
25.49B
10%
16.02B
5.2%
16.87B
5.2%
Investment
Long term
36.51B
18.3
45.58B
18%
54B
17.4%
55.69B
17.2
Note
Receivable
Intangible
13.1B
Assets
Other assets
57M
0.03
22.18
8.74
59.11
%
0.02
48M
35M
19.1%
0.01%
59.24
18.3
%
0.01
63M
Page 22 of 45
Total asset
199.39
%
100
253.77
%
100
309.52
Total
B
76.9B
%
38.6
B
101.24
%
39.9
B
105.54
37.16B
18.6
44.44B
1.7%
63.6B
20.5%
61.52B
19%
30.21B
%
15.2
33.74B
13.3
42.27B
13.7%
39.43B
12.2
Deferred
(2.58B
%
-
%
(2.28B) -
5.26B
0.08%
6.63B
%
2.0%
Taxes
0.01
Other
4.74B
%
2.4%
6.94B
2.7%
7.07B
2.3%
6.83B
2.1%
Liabilities
Total
150.68
75.6
190.42
75%
227.52
73.5%
234.3B
72.2
Liabilities
Total Equity
B
48.71B
%
24.4
B
63.35B
25%
B
82B
90.04B
%
27.8
Liabilities
199.39
%
100
253.77
100
309.52
324.33
%
100
&
Current
Liabilities
Long-Term
Debt
100%
324.33
%
100
34.1%
B
118.67
%
5.8%
0.9%
26.5%
100%
Shareholder
s' Equity
Page 23 of 45
2010
2011
2012
2013
0.62
11.56
10.02
31.14
0.64
12.96
13.10
27.78
0.61
10.12
9.29
35.57
0.62
10.77
11.20
33.43
1.22
1.09
1.10
0.98
1.05
0.91
1.07
0.93
13.35
1.11
0.62
11.27
2.15
0.64
11.73
1.53
0.61
16.00
4.36
0.62
0.080
0.070
0.013
0.030
0.63
0.68
0.63
0.62
0.64
0.57
0.64
0.60
Page 24 of 45
(2) Honda
Ratio
Activity ratio
Total asset turnover
Inventory turnover
Accounts receivable turnover
Age of inventory
Liquidity ratio
Current ratio
Quick ratio
Profitability ratio
Gross margin
Profit margin on sales
Sales to total assets
Return on total asset
Leverage ratio
Debt ratio
Long-term debt to equity
2010
2011
2012
2013
0.74
6.86
9.71
52.48
0.77
7.22
11.34
49.86
0.67
5.69
9.79
63.27
0.72
6.02
9.78
59.80
1.35
1.07
1.31
1.06
1.32
1.03
1.30
1.00
25.29
3.13
0.74
0.024
27.29
5.97
0.77
0.047
25.53
2.66
0.67
0.019
25.61
3.70
0.73
0.028
0.62
0.53
0.60
0.46
0.62
0.51
0.62
0.54
(3) Hyundai
Page 25 of 45
Ratio
Activity ratio
Total asset turnover
Inventory turnover
Accounts receivable turnover
Age of inventory
Liquidity ratio
Current ratio
Quick ratio
Profitability ratio
Gross margin
Profit margin on sales
Sales to total assets
Return on total asset
Leverage ratio
Debt ratio
Long-term debt to equity
2010
2011
2012
2013
0.71
9.32
21.00
38.62
0.71
9.08
20.21
39.65
0.69
9..55
22.87
37.70
0.65
9.55
17.89
37.70
1.38
1.21
1.48
1.29
1.67
1.46
1.84
1.62
23.65
8.21
0.71
0.060
24.54
9.85
0.71
0.070
23.45
10.13
0.69
0.070
23.68
9.78
0.65
0.070
0.65
0.76
0.63
0.73
0.61
0.69
0.58
0.66
2010
2011
2012
2013
0.64
6.07
7.20
59.31
0.62
4.80
5.78
75.00
0.62
5.55
6.72
64.86
0.61
5.70
6.88
63.16
(4) Volkswagen
Ratio
Activity ratio
Total asset turnover
Inventory turnover
Accounts receivable turnover
Age of inventory
Page 26 of 45
Liquidity ratio
Current ratio
Quick ratio
Profitability ratio
Gross margin
Profit margin on sales
Sales to total assets
Return on total asset
Leverage ratio
Debt ratio
Long-term debt to equity
1.12
0.89
1.04
0.77
1.11
0.84
1.07
0.83
15.66
5.39
0.64
0.040
17.07
9.67
0.63
0.065
17.37
11.27
0.62
0.075
17.04
4.6
0.61
0.033
0.76
0.81
0.75
0.77
0.74
0.81
0.72
0.70
Page 27 of 45
Company
Current ratio
Quick ratio
Toyota
1.07
0.93
Honda
1.30
1.00
Hyundai
1.84
1.62
Volkswagon
1.07
0.83
Current ratio is the ratio of the current assets and current liabilities, it shows if a
company is able to meet its short-term obligations or not. As shown in the table all the
companies have the ratio over 1. That means they have enough current assets to settle
the current liabilities.
In year 2013, all the companies can be trusted on their liquidity abilities, but having too
much of current ratio suggests they have too much current assets that is left un-invested.
The extra assets are wasted by the companies. For instance, Hyundai has a current ratio
of 2.93, which is too high. Toyota has 1.07, Honda and Volkswagon have 1.30 and 1.07
respectively. It is clear that Ford has too much of current assets left over. Quick ratio
does not include the current assets like inventories as they are not believed to be easily
liquidable. Hyundai has the maximum ratio of 2.75, while the others have the ratio
around one.
Page 28 of 45
Leverage ratio is a ratio used to measure a company's mix of operating costs, giving an
idea of how changes in output will affect operating income. Fixed and variable costs are
the two types of operating costs; depending on the company and the industry, the mix
will differ.
Company
Debt ratio
Long-term debt to equity
Toyota
0.64
0.60
Honda
0.62
0.54
Hyundai
0.58
0.66
Volkswagon
0.72
0.70
The leverage ratio of volkswagon is the highest among the 4 companies, which means
that it has many debts. However, the Hyundai has the lowest total debt to equity ratio
among the companies, which means it has less debt compare to the other companies.
Page 29 of 45
Toyota
16.00
4.36
0.62
Honda
25.61
3.70
0.73
Hyundai
23.68
9.78
0.65
Volkswagon
17.04
4.6
0.61
0.030
0.028
0.0700
0.033
The Hyundai has the highest return on total assets. It means that Hyundai more
efficiency manage its assets to generate earnings. Besides, Hyundai also has the highest
profit margin on sales among the four companies, which means that the company can
generates more profit with the money that the shareholders have invested. However,
Honda has the highest gross margin. Honda has the more retains on each dollar of sales
to service its other costs and obligations.
Page 30 of 45
Toyota
0.62
10.77
11.20
Honda
0.72
6.02
9.78
Hyundai
0.65
9.55
17.89
Volkswagon
0.64
6.07
7.20
Age of inventory
33.43
59.80
37.70
59.31
Toyota has the lowest total assets turnover, which means that Toyota has less efficiency
on deploying its assets. Hyundai has the highest account receivable turnover, which
means that Hyundai has the highest efficiency to collect back the debts. However,
Toyota has the highest inventory turnover. It means that Toyota has the most times
among the company on inventory is sold and replaced over a period.
Page 31 of 45
Selected ratio
Current ratio
Toyota
Honda
Hyundai
Volkswagon
Toyota
Honda
Hyundai
Volkswagon
Toyota
Honda
Hyundai
Volkswagon
Toyota
Honda
Hyundai
Volkswagon
2010
1.22
1.35
1.38
1.12
0.68
0.53
0.76
0.81
0.080
0.024
0.060
0.040
0.62
0.74
0.71
0.64
2011
1.10
1.31
1.48
1.04
0.62
0.46
0.73
0.77
0.070
0.047
0.070
0.065
0.64
0.77
0.71
0.62
2012
1.05
1.32
1.67
1.11
0.57
0.51
0.69
0.81
0.013
0.019
0.070
0.075
0.61
0.67
0.69
0.62
2013
1.07
1.30
1.84
1.07
0.60
0.54
0.66
0.70
0.030
0.028
0.070
0.033
0.62
0.72
0.65
0.61
Page 32 of 45
Page 33 of 45
3.4.6 Conclusion
Along the time, the current ratio of Hyundai had improved from 1.38 to 1.84. By
flowing the improvement of the current ratio, the quick ratio of the company is also had
improved. The financial leverage of the company had become less compare with year
2010 with 2013 while the total debt to equity ratio also decreases a lot. Hyundai has the
highest return on total assets and return on equity in year 2013. The return of the assets
of the company reaches the highest figure in year 2013.
Page 34 of 45
4.0 reference
- www.google.com
- www.marketwatch.com
- www.http://en.wikipedia.org
- www.scribd.com
- http://www.investors.com/default.htm
Page 35 of 45
BBA 3002
FINANCIAL STATEMENT ANALYIS
(COURSEWORK)
Page 36 of 45
Page 37 of 45
1.
Accounting Entity. The accounting entity is the business unit (regardless of the
legal business form) for which the financial statements are being prepared. The
accounting entity principle states that there is a "business entity" separate from its
owners... a fictional "person" called a company for which the books are written.
2.
that the life of the business entity is infinitely long. Obviously this assumption can not
be verified and is hardly ever true. But this assumption does greatly simplify the
presentation of the financial position of the firm and aids in the preparation of financial
statements. If during the review of a corporation's books, the accountant has reason to
believe that the company may go bankrupt, he must issue a "qualified opinion" stating
the potential of the company's demise. More on this concept later.
3.
and obligations upon which there is an agreed-upon value. Accounting only deals with
things that can be measured. This assumption leaves out many very valuable company
"assets." For example, loyal customers, while necessary for company success, still
cannot be quantified and assigned a value and thus are not stated in the books. Financial
statements contain only the quantifiable estimates of assets (what the business owns)
and liabilities (what the business owes). The difference between the two equal owner's
equity.
Page 38 of 45
4.
Units of Measure. U.S. dollars are the units of value reported in the financial
statements of U.S. companies. Results of any foreign subsidiaries arc translated into
dollars for consolidated reporting of results. As exchange rates vary, so do the values of
any foreign currency denominated assets and liabilities.
5.
Historical Cost. What a company owns and what it owes are recorded at their
original (historical) cost with no adjustment for inflation.A company can own a building
valued at $50 million yet carry it on the books atits $5 million original purchase price
(less accumulated depreciation), a gross understatement of value.This assumption can
greatly understate the value of some assets purchased in the past and depreciated to a
very low amount on the books. Why, you ask, do accountants demand that we obviously
understate assets? Basically, it is the easiest thing to do. You do not have to appraise and
reappraise all the time.
6.
information. Accountants don't sweat the small stuff. But all transactions must be
reported if they would materially affect the financial condition of the
company.Remember, what is material for a corner drug store is not material for IBM
(lost in the rounding errors). Materiality is a straightforward judgment call.
7.
less than exact. Estimates and judgments must often be made for financial reporting. It
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is okay to guess if (I) that is the best you can do and (2) the expected error would not
matter much anyway. But accountants should use the same guessing method for each
period. Be consistent in your guesses and do the best you can.
8. Consistency. Sometimes identical transactions can be accounted for differently. You
could do it this way or that way, depending upon some preference. The principle of
consistency states that each individual enterprise must choose a single method of
reporting and use it consistently over time. You cannot switch back and forth.
Measurement techniques mustIK- consistent from any one fiscal period to another.
9. Conservatism. Accountants have a downward measurement bias, preferring
understatement to overvaluation. For example, losses arc recorded when you feci that
they have a great probability of occurring, not later, when they actually do occur.
Conversely, the recording of a gain is postponed until it actually occurs, not when it is
only anticipated.
10. Periodicity. Accountants assume that the life of a corporation can be divided into
periods of time for which profits and kisses can be reported, usually a month, quarter or
year.
What is so special about a month, quarter or year? They are just convenient periods;
short enough so that management can remember what has happened, long enough to
have meaning and not just be random fluctuations. These periods are called "fiscal"
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periods. For example, a "fiscal year" could extend from October 1 in one year till
September 30 in the next year. Or a company's fiscal year could be the same as the
calendar year starting on January 1 and ending on December 31.
"Lines" are perhaps not as important as principles, but they can be confusing if you
don't
know how accountants use them in financial statements. Financial statements often have
two types of lines to indicate types of numeric computations.
Single lines on a financial statement indicate that a calculation (addition or
subtraction) has been made on the numbers just preceding in the column.
The double underline is saved for the last. That is, use of a double underline
signifies the very last amount in the statement.
Note that while all the numbers in the statement represent currency, only the top
line and the bottom line normally show a dollar sign.
a
SALES [$J
a-b=c
GROSS MARGIN
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R&D
G&A
d+e+f=g
TOTAL EXPENSES
INTEREST INCOME
INCOME TAXES
c- g+h-i=j
FASB1 makes the rules and they are called GAAP.2 Financial Accounting Standard
Board ;2Generally Accepted Principles
11.
transaction rather than just its form. For example, an equipment lease that is really a
purchase dressed in a costume is booked as a purchase and not as a lease on financial
statements. This substance over form rule states that if it's a duck... then you must report
it as a duck.
12.
Accountants translate into dollars of profit or loss all the money-making (or losing)
activities that take place during a fiscal period. In accrual accounting, if a business
action in a period makes money, then all its product costs and its business expenses
should be reported in that period. Otherwise, profits and losses could flop around
depending on which period entries were made.
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basis of accountingother businesses may use a "cash basis" if they desire. Cash basis
financial statements
are just like the Cash Flow Statement or a simple check book. We will describe features
of
accrual accounting in the chanters that follow.
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