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sin3 replied to the topic Discussion Topic: Exercise your research skills in the forum Business 101 6 years, 6 months ago
I decided to research Audi Group. Being one of the top automotive companies in the world and owning one, I thought it would be interesting to see how the company I have invested in is doing economically. I found a 10 year financial report that offers 10 years worth of financial statements since 2008.
Just from looking at how many cars they have sold since 2008, it has steadily been increasing. Starting from approximately 1,029,041 automotive segments in 2008 to 1,879,940 in 2017, almost doubling their automotive segments in a decade, indicating a steady need for production. Additionally, the workforce over this decade demonstrated a drastic increase, as from 2008 it went from an average of 57,822 employees to 90,402 employees in 2017. As a result, the personal costs per employee also increased.
The share price over the years is also steadily increasing. In 2008, the share price for Audi was 480.00 EUR. Over the years it never decreased, rather it went up by a couple hundred and by 2017, it has increased to 725.95 EUR.
However, one interesting thing I noticed was that Audi’s ROI decreased over the years drastically. In 2008, the ROI percentage was 19.8. By 2011 it increased to 35.4. However by 2017 it went down by 10% to 10.7, and bounced up to 14.4 in 2017. It seems that they are not selling as much as they were or are not making as great a profit as they were in previous years. This could be a major warning sign to investors who are seeking a those profitable return on their stock.