Volkswagen Group Financial Performance from Time to Time

 

Volkswagen Group Financial Performance from Time to Time- Volkswagen Group is a holding automotive company that has numerous brands of cars and motorcycles with has broad market around the world. Historically, this company was founded in Berlin, Germany on May 28th, 1937. As of now, this company has miscellaneous brands. These brands are Audi, Bentley, Cupra, Lamborghini, Porsche, SEAT, Škoda, and Volkswagen commerical vehicles, Volkswagen passenger cars, Volkswagen truck & bus. Most of the brands are well-known brands and many people recognize their brands. Nowadays, the company has its central office in Wolfsburg, Germany.

Along with the business development of Volkswagen Group in 2023, Volkswagen Group can sell 9.3 million of all of vehicle models around the world. Specifically, according to geographical market, Europe region still become the main market, with total of vehicle’s sales reaching 4.1 million units (contributing of € 187 billion to Total Volkswagen’s sales revenue), followed by Asia-Pacific with 3.6 million units (contributing of € 50 billion to Volkswagen’s revenue), the North America with 1 million units (contributing of € 67 billion), and South America with 513 thousand units (contributing of € 17 billion).  

Based on the Workforce, the Volkswagen Group employed around 684 thousand of people in 2023. Based on the business line, this group has two main divisions, namely the Automotive division, and financial service. The automotive division produces manufacture, and sell passenger and commercial vehicle (cars, trucks, motorcycles) engineering business, vehicle software, and spare part for the vehicle. Meanwhile, the financial service division comprises dealer and customer financing, leasing of vehicles, insurance, and mobility service. In the Automotive division, some of the flagships brands of Volkswagen are Volkswagen Passenger Cars with total vehicle deliveries reaching 4.8 million units, followed by Audi with total vehicle deliveries of 1.8 million units, and SKODA with total deliveries of 867 thousand units.

In terms of the shareholder ownership, Volkswagen Group was owned by several investors. As of December 31st, 2023, the Majority shareholders of Volkswagen are Porsche Automobil Holding with ownership percentage around 31.9 %, State of Lower Saxony (11.8%), Qatar Holding LLC (10.5%), and other investors.

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The Assets, Liabilities, and Equities of Volkswagen Group

Years	Assets	Liabilities	Equities
	Million Euro	Million Euro	Million Euro
2009	177,178	139,748	37,430
2010	199,393	150,681	48,712
2011	253,769	190,415	63,354
2012	309,644	227,819	81,825
2013	324,333	234,296	90,037
2014	351,209	261,011	90,198
2015	381,935	293,665	88,270
2016	409,732	316,822	92,910
2017	422,193	313,116	109,077
2018	458,156	340,814	117,342
2019	488,071	3644,20	123,651
2020	497,411	368,628	128,783
2021	528,609	382,455	146,154
2022	564,772	386,445	178,327
2023	600,338	410,426	189,912
Source: Volkswagen Group Annual Report, 2010-2023

Based on the financial structure of the company, in the balance sheet performance from 2009 to 2023. This company has grown in assets and equities. The total assets of the company in 2009 are just 177,178 million euros and in 2023, it becomes 600,338 million Euro. In the other variable, the equities of the company are also in the positive pathway. The equities of the company in 2009 are 37,430 million euros, and it grows to become 189,912 million euros in 2023.

Based on the financial ratio of the debt-to-equity (D/E) and the debt-to-asset ratio (DAR), the everage ratio between liabilities and assets (DAR) from 2009 to 2023 is 0.74. It means that the percentage of total liabilities is 74% of total assets and the rest of it is equities. Meanwhile, the average ratio between debt and equity ratio (D/E) is about 2.89. Particularly, it means that the debt is 2.9 times more than the equities.

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The Revenue and Net Income of Volkswagen Group

Years	Revenue	Net Income
	Million Euro	Million Euro
2009	105,875	911
2010	126,875	7,226
2011	159,337	15,799
2012	192,676	21,884
2013	197,007	9,145
2014	202,458	11,068
2015	213,292	-1,361
2016	217,267	5,379
2017	229,500	11,463
2018	235,849	12,153
2019	252,632	14,029
2020	222,884	8,824
2021	250,200	15,428
2022	279,232	15,836
2023	322,284	17,928
Source: Volkswagen Group Annual Report, 2010-2023

Based on the financial and business performance, the company has had positive performance around in two decades from 2009 to 2023. The revenue in 2009 is just EUR (€) 105 billion and becomes EUR (€) 322 billion in 2023. Meanwhile, the net income of the company is also a tremendous performance. In 2009, the net income is just EUR (€) 911 million and grows into EUR (€) 17.9 billion in 2023. From 2009 to 2023, Volkswagen group had experience negative business conditions in 2015 with suffering of EUR (€) 1.3 billion Euro of losses. For the rest of the years, except 2015, the Volkswagen group experienced positive performance with gaining the profit/ net income.

Based on the Net profit margin (NPM), the ratio between revenue and net income is about 5%. It means that the revenue of the company becomes profit is about 5%. In other interpretations, 1 Euro of revenue can become a net income of around 0.05 euro. Meanwhile, based on the Return of Assets (ROA), the average value of ROA is 2.9 %. Meanwhile, the Return of Equity (ROE), the average value of the company, is about 11.2%. This NPM, ROA, and ROE can describe the efficiency of a company doing its business. The more value of the ratio, the more efficient of the company in generating the net income/profit.

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Bibliography of Volkswagen Group Financial Performance from Time to Time

Wikipedia. 2023. Volkswagen Group. Accessed via https://en.wikipedia.org/wiki/Volkswagen  on April 22nd, 2023.

Volkswagen Group. 2024. Annual Reports 2023. Accessed via https://www.volkswagenag.com/en/InvestorRelations/news-and-publications/Annual_Reports.html on April 23rd, 2024.