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.
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.
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.
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.