BMW 2023 (All amount is in EUR million)
Debt Management Ratios – measure the extent to which the firm
uses debt (or financial leverage) versus equity to finance its
assets as well as how well the firm can pay off its debt
Debt ratio = total debt also known as total liabilities (current
liabilities + non-current liabilities) / total assets =(
87001+70966)/250890 = 157967/250890 = 0.63 * 100 = 63%
Debt-to-equity = total debt/total equity = (87001 + 70966) /
92923 = 1.7
Equity multiplier = total assets/ total equity (total asset – total
liabilities) = 250890/ 92923 = 2.70 times
Time interest earned = EBIT (Profit before financial result, which
mean before factoring interest and taxes) /Interest (interest
expense) = 18482/3554 = 5.20
Fixed-charge coverage = earning available to meet fixed
charges( ebit + fcbt) / fixed charges(fcbt + interest) =
18482 + 43118/43118+3554 = 61,600/ 46,672 = 1.32 times
Cash Coverage (EBIT + Depreciation) / Fixed charged
(18482 + 8974) / 3554 = 7.73 times
Profitability ratios – combine effect of liquid, asset management
and debt on overall operating results
Gross profit margin = sales – cost of goods sold(cogs) / sales =
155498-125809 / 155498 = 0.19*100 = 19%
Operating profit margin = EBIT / SALES = 18482/155498 = 0.12
* 100 = 12%
Profit margin = Net income available to common
stockholders / Sales
10250.3/155498 * 100 = 6.59%
Basic Earning power(BEP) = EBIT / Total assets =
18482/250890 = 0.0736 *100=7.37%
Return on asset (roa) = net income/total assets =
10250.3/250890 * 100 = 4.09%
Return on equity (roe) = net income/common stockholders’
equity= 10250.3/92923 * 100 = 11.03%
● Dividend Payout Ratio
Common stock dividends (Dividend per share*number of common stock) /
Net income available to common stockholders
(6*579941360/10250.3*1000,000)*100 = 33.95%
BMW 2022
Debt Management Ratios:
Debt Ratio = Total Liabilities / Total Assets
= (84421+71217) / 246926
= 0.63 or 63%
Debt-to-equity = Total debt / total Equity
= (84421+71217) / 91288
= 1.70
Equity Multiplier = Total Assets / Total Equity
= 246,926 / 91,288
= 2.70
Times Interest Earned = Earnings Before Interest and Taxes
(EBIT) / Interest Expense
= 13,999 / 2114
= 6.62
***Fixed Charge Coverage = (EBIT + Fixed Charges before
tax) / (Fixed Charges + Interest Expense)
= (13,999 + 42820) /(42820+ 2114 )
= 1.26 Times
***Cash Coverage = (EBIT + Depreciation) / Fixed charged
= 13999 + 8566 / 42820
= 0.53 Times
Profitability Ratios:
Gross Profit Margin = Gross Profit / Revenues
= 24,568 / 142,610
= 17.23%
Operating Profit Margin = Operating Profit (EBIT) / Revenues
= 13,999 / 142,610
= 9.82%
Profit Margin = Net Income / Revenues
= 16327.7/ 142,610
= 11.45%
Basic Earning Power (BEP) = EBIT / Total Assets
= 13,999 / 246,926
= 5.67%
Return on Assets (ROA) = Net Income / Total Assets
= 16327.7/ 246,926
= 6.61%
Return on Equity (ROE) = Net Income / Total Equity
= 16327.7/ 91,288
= 17.89%
Dividend Payout Ratio = Dividends / Net Income
= Common stock Ydividends (Dividend per share*number of common
stock) / Net income available to common stockholders
(8.5*597924318/16327.7*1000,000)*100 = 31.13%
