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.

I did my research on Amazon INC. and these were my findings.

As of October 6th 2020, it shows that the Profitability, Liquidity, Valuation and Capital structure are so far on the good side and considering the current situation with the Pandemic which has affected the financial state of most companies.

Profitability:

Gross Profit Margin: 40.99% (the Gross Profit Margin is below average and when compared to a medical device company this will be a bad investment which they will not want to go into)

Net Profit Margin: 4.13%

Return on Asset: 5.97%

Return on Equity: 21.95%

Return on Investment: 11.11%

Liquidity:

Current Ratio: 1.10%

Quick Ration: 0.86%

Capital Structure:

Total Debt to Total Equity: 124.94%

Valuation:

Price per Earnings (P/E) Current: 139.14%

 In summary, looking at the ROI, ROE, and ROA which mostly determines the Financial health of the company; the ROI shows you how much the corporation has made vs the investments. An ROI less than 0.2 show that the company isn't making much profit as to how much was invested into the company; this shows that Amazon is needs to work on their ROI because the ratio is less than 0.2 (the ratio is at 0.1 which isn't too good for a big corporation like amazon). But the ROE seems to be ok since the average ROE for public traded company is currently 18% a ratio of 0.18.

Reference:

https://www.marketwatch.com/investing/Stock/AMZN/profile

I understand how you have evaluated BMS. Clearly they have had some rough patches in their history but so has many biopharmaceutical organizations. I think they have made some major changes in the oncological space including the acquisition of Celgene. Stock prices are good right now although that metric can be difficult. Stocks are affected by many things including overall industry, politics and general economy. The other metrics that you have indicated are very good to evaluate firms.

I would highlight the innovation (new products) as an important one. This one is used in the biopharmaceutical industry to gauge a firm's long term potential. Intellectual property and product lifecycle issues with loss of patents requires these firms to continually innovate and bring new products to the market. This would also be a consideration if you are looking to find a job in the R&D side of the company. 

Large firms like BMS certainly are a place for new graduates since they provide opportunities to learn alot early in your career. As you develop your career you might change your views of organizations but I think the material reviewed in class can help you understand your options.  

Posted by: @orleron

Being able to look at the financial statements of a company and determine some guesses on its health is a good skill to have.

All public companies in the US must publish their financial statements quarterly and yearly. Take a look at the statements for your favorite company. Post here about your impressions on its health, describing some key ratios that support your argument.

I chose Neurocrine biosciences Inc 

Neurocrine Biosciences Inc achieved return on average invested assets of 19.17 % in II. Quarter, above company average return on investment.

ROI improved compare to previous quarter, due to net income growth. In the fiscal year 2019 ROI improved to 3.54 % compare to previous year, due to net income growth.

Within Healthcare sector 37 other companies have achieved higher return on investment. While Return on investment total ranking has impoved so far to 218,from total ranking in previous quarter at 242.

Base on this fews statistics , I think Neurocrine Biosciences Inc is healthy and doing well.

https://csimarket.com/stocks/NBIX-Return-on-Investment-ROI.html

I did some research on Siemens Healthineers AG, a medical technology company which develops medical imaging devices, diagnostic tests, and much more, headquartered in Germany. The following financial ratios were found:

Price per earnings (P/E): 25.32. This is above the average P/E of ~13-15 for the S&P 500, which is a good sign. 

Return on assets (ROA): 7.61. Generally, an ROA over 5% is considered good. 

Return on equity (ROE): 17.01. For ROE, 15-20% is considered in a good range. 

Quick ratio: 1.02. A company with a quick ratio close to 1 is normal, showing that the company has enough assets to pay off its current liabilities. 

Earnings per share (EPS): 1.57. The EPS for Siemens Healthineers was 1.26 in 2018, which is a good sign of growth. 

Overall, based on these financial ratios, Siemens Healthineers seems to be a healthy company in areas such as: profitability, efficiency, and liquidity. 

References:

https://www.wsj.com/market-data/quotes/XE/SHL/financials

https://www.investopedia.com/investing/use-pe-ratio-and-peg-to-tell-stocks-future/#:~:text=A%20higher%20P%2FE%20ratio,trades%20at%2025%20times%20earnings.

https://www.marketscreener.com/quote/stock/SIEMENS-HEALTHINEERS-AG-42379342/financials/

I choice Apple(Jun-30-2020)

Gross Profit margin: 38.19% this number considered low as it is the amount of money the company make after spending a certain money.

Net profit margin: 21.33% which is almost the same as (with small difference) from the months before.

ROE:70.66% having this present is a great deal, apple is making much more than what they invest.

ROA:17.75%

ROI: 38.43%

ROA and ROI are the highest numbers in the last 4 years so apple is earning more money in less investment.

It seems like apple is having a great year, and i believe when they start selling there latest products we can see huge improvements.