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COMPONENT-2

FIAT SPA
Top Competitors for FIAT SPA

Competitors
FORD MOTOR COMPANY
PEUGEOT SA

Volkswagen AG

FORD MOTOR COMPANY Rankings


#8 in FORTUNE 500 (June 2014)
S&P 500 (June 30, 2014)
#148 in FT Global 500 (June 2014)
#8 in FORTUNE 1000 (June 2014)
The country that gave us Sophia Loren and Leonardo da Vinci also
gave us the century-old Fiat. The group's cars range from models
like the popular Fiat Nuova 500 to the Alfa Romeo, Ferrari (85%
owned), and Maserati brands. Fiat holds a 53% stake in Chrysler,
and has management control of the US carmaker. Fiat reorganized
its operations in early 2011 and sent its agricultural and
construction equipment (led by 89% owned CNH Global),
commercial vehicles (Iveco), and most of the rest of its no
automobile operations to the newly created Fiat Industrial.

PEUGEOT SA Company Profile


Peugeot S.A. enjoys its space under L'Arc de Triomphe, besting
rival Renault to claim the top spot in the battle for auto sales in
France. Peugeot makes cars and light commercial vehicles under
the Peugeot and Citron brands. Peugeot is among the top
manufacturers in European passenger car and commercial vehicle
sales. Also part of Peugeot's
automotive operations are Faurecia (auto
parts),GEFCO (transportation and logistics), and Banque PSA
Finance (financial services for dealers and customers). Other
group products include motorcycles and scooters. Peugeot makes
most of its sales in Europe. The Peugeot family controls about
38% of the voting stock.

Volkswagen AG Rankings
DAX 30
#50 in FT Global 500 (June 2014)

Volkswagen AG Company Profile


With cars named for climate patterns, insects, and small
mammals, Volkswagen (VW) leads the Continent as Europe's #1
carmaker. Along with Golf (Gulf Stream reference) and the New
Beetle, VW's annual production of more than 7 million cars,
trucks, and vans includes such models as Passat (trade wind),
Jetta (jet stream), Rabbit, and Fox. VW also owns a garage full of
luxury carmakers --AUDI, Lamborghini, Bentley, and Bugatti.
Other brands include SEAT (family cars, Spain) and koda(family
cars, the Czech Republic). Late in 2009 VW acquired a 49.9%
stake in Porsche for about 4 billion (almost $6 billion) as the first
step in combining the two into an integrated car company.

Target market
Fiat targets all upper class and middle class consumers
as theyve all luxury brands like Ferrari, Meserati, and
Alfa so they do products for high class people

PESTEL

POLITICAL
:\
EU
Enlargem
ent
War in
Iraq
Unstable
Current
Situation
in the
Middle
East
CAFE

ECONOMI
CL:
China and
the WTO
Strong
Position
of China
The
automotiv
e industry
crisis of
20082010
Current
global
economy
Exchange
Rates

SOCIAL:
Growth of
Middle
Class
Social
Awarenes
s

TECHNOL
OGCAL:
Energy
crisis
Alternativ
e
Resources

ENVIRON
MENTAL:
Terrorism
Increased
Competiti
on

LEGAL:
Kyoto

POLITICAL
(1) EU Enlargement:
Since 2007 there have been twenty-seven EU member states including
Estonia, Latvia, Lithuania, Poland, Czech Republic, Slovakia, Hungary,
Slovenia, Malta, Cyprus, Romania and Bulgaria. For Fiat, a car company
that has its base in the EU, this means more countries for Fiat to trade
with within European barriers.
(2) War in Iraq:
Ever since the War in Iraq (2003) the oil price has been increasing. The
price increase of gasoline at the gas station has had an immense effect on
the demand of cars, because oil and cars are complementary products.

The rise of the price of one, causes a decline in the demand of the other
one. Needless to say, this also impacts Fiat.
(3) Unstable Current Situation in the Middle East:
The recent events in Egypt, Tunesia and Libya are disturbing politics in
the Middle East. Libya one of the OPEC countries is caused the oil price
per barrel to increase by +- 15$ over the past 7 days. Again, an increase
in the price of fuel has an immediate impact on the demand for cars.
(4) The Corporate Average Fuel Economy (CAFE):
The Corporate Average Fuel Economy regulation is a piece of legislation
which requires all participating car- makers to manufacture automobiles
with a 27.5 mpg average (NHTSA, 2007). For car manufacturers who do
not have the technology to or research and development capacity to be
able to make engines at this economy, it will require money and time to
be able to hit the targets.
ECONOMICAL:
(1) China and the WTO:
China is one of the largest markets for cars. According to industry
forecasts, China will be the third largest market for automobiles in the
near future. Another important point to notice is that China joined the
World Trade Organization in 2001. Chinas entrance into the WTO could
have been an advantage (new markets) or a threat (new competitor) for
FIAT. Considering the fact that Fiats market share internationally is not
that strong and that FIAT sells mostly on the EU market; one can conclude
that Fiat has had a more negative effect from China joining the WTO, than
a positive one.
(2) Strong Position of China:
In the production of passenger cars, Asia-Oceania leads with a share of
53% of the world production, followed by Europe with 31% and America
with 14% (2009).
(3) The automotive industry crisis of 2008-2010:
The automotive industry crisis of 20082010 was a part of a global
financial downturn. The crisis affected European and Asian automobile
manufacturers, but it was primarily felt in the American automobile
manufacturing industry.
(4) The current global economy:

At present the global economy is experiencing a downturn. This has


meant that businesses are experiencing loss or profit and downsizing
issues. This has been seen in FIATs operating profit falling by almost a
third from October 2008-09 (Financial Times, 2009).
(5) Volatile fluctuating exchange rates:
Volatile fluctuating exchange rates mean that for exporters, returns can
be hard to predict. Hedging can be applied but this costs money in the
form of commission and can be a gamble in the exchange rates become
more advantageous (BBC, 2008). As Fiat is attempting to sell more cars
through the Chrylser alliance the issue of volatile fluctuating rates in it is
markets can become very important.
SOCIAL:
(1) Growth of the Middle Class:
New opportunities arise for FIAT due to the growth of the middle class in
emerging countries.
(2) Social Awareness:
Another arising issue is the social awareness of pollution which leads
people to use public transportation which is also supported in Europe, for
instance, by government policies. This causes frequent use of cars to
slightly falter, and has an impact on demand. It also encourages car
companies to invest in R&D (alternative fuels).
TECHNOLOGICAL:
(1) Energy Crisis:
The automotive industry was weakened by a substantial increase in the
prices of automotive fuels linked to the 2003-2008 energy crisis. Car
makers are researching into alternative fuels.
(2) Alternative Resources:
The most important technical advantage car companies are investing in, is
the possibility of implementing alternatives to fuel. Oil is becoming a
scarce resource, and the parties controlling it are becoming more and
more unpredictable. (E.g. Iraq 2003 and the current situation in Libya)
ENVIRONMENTAL:
(1) Terrorism:

Acts of terrorism, such as the 9/11 attacks have an immediate effect on


consumer behavior. The war on Iraq can also be included in this list.
Consequences of these events are that consumers develop some type of
grudge against oil controlling countries and change their behavioral
patterns such as for example, buying more fuel efficient cars.
(2) Increasing Competition:
Emerging countries (BRIC), Asia and Africa are developing at a rapid pace.
This creates new competitors in all markets including the automotive
industry. Fiat will also feel this increased competition, and will have to
arm itself against it.
(3) Global Warming:
Global warming and pollution reduction are becoming ever more
prominent on the world stage. Natural resources such as oil are thought to
be running out which means that petrol prices are increasing, It opens a
new market for fuel efficient and alternative energy cars.
LEGAL:
(1) Kyoto Protocol:
In 1998 Italy undersigned the Kyoto Protocol, hence Fiat has the
responsibility to do its part. The agreement states that the signees must
reduce greenhouse gas emissions by 8% compared to 1990 levels in the
period of 20082012. The protocol not only has an effect on the
production process, but also stimulates research into alternative and more
efficient fuel. This is very important in the European Union where the
Automobile Manufacturers Association negotiated a voluntary
commitment with the European Commission in order to reduce CO2
emissions.

Porters Five Forces:

FORCE

THREAT

The threat of Entry

Low

The treat of powerful Moderately High


buyers
The threat of powerful Low
suppliers
The threat of substitutes High
The threat of rivalry

High

The 5 forces of competition as developed by Michael Porter is a tool that

helps us evaluate the industry competition.


Fiat has recognized that there is fierce competition in the industry and
took a large stake in the North American manufacturer, Chrysler in order
to broaden its scope and increase market share. Fiat was also a promising
bidder in the sale of GMs European subsidiary but this did not pass.
The threat of ENTRY LOW.
(1) Cost of entry:
The cost of entry is the initial capital required to set up a new firm. The
startup cost of an automobile firm is extremely high. The automotive
industry is very capital intensive. A car manufacturer needs large plants
and modern machines in order to produce on an efficient scale. In
addition, the automobile industry is a very mature economy of scale. The
previous mentioned facts make it difficult to enter the automobile
industry.

(2) Knowledge and Technology:

Ideas and Knowledge that provide competitive advantages prevent others


from using it and thus creates a barrier to enter the market. Fiat has
extensive knowledge and experience in the automobile industry. Research
is conducted by Centro Richerche Fiat (CRF) and Elasis. About 3.5% of net
revenues from industrial activities are used for R&D. Furthermore, Fiat has
renowned technological advantage because of acquisitions and mergers.

(3) Brand identity:


Brand equity is crucial in the automobile market. Fiat is a globally
recognized and established brand. It owns brands like Ferrari, Alfa Romeo,
Lancia and Maserati. On eleven occasions FIAT Auto models have won the
Car of the Year Award, the car industrys most prestigious recognition
worldwide. The award has been won eight times by FIAT, twice by Alfa
Romeo and once by Lancia. The awards indicate that FIAT is able to
manage brand identity in order to avoid the threat of new entrants.

(4) Government regulation:


Fiats products and activities are subject to many environmental laws and
regulations on local, national and international level. Regulations govern
products with requirements for emission of polluting gasses, safety and
production plants with requirements for emissions, soil contamination, etc.
Regulations bring about additional compliance costs. Any change in
policies or regulations have a great impact on the companys future
prospects and earnings.

(5) Distribution Channels:


For new entrants it is extremely difficult to establish distribution channels.
Fiat has an advantage of well established distribution channels across the
world, especially in Europe. As a result of the partnership with Chrysler
Group, Fiat will be able to expand its product portfolio in the US. This
guarantees and ensures Fiats customers to find Fiat group cars easily and
have more assistance worldwide.

(6) Mergers:
Entry barriers are quite high in the automobile sector. However,
established companies are entering new markets through strategic

partnerships or through buying out or merging with other companies. In


2009, Fiat signed an agreement with Chrysler. As a result of the strategic
alliance, they have the resources, technology and a worldwide distribution
network to compete effectively worldwide.
The treat of POWERFUL BUYERS MODERATELY HIGH.
Buyers do not have the ability to vertically integrate backward. If they want a car
then they have to purchase it from a (specialized) dealer. However, there is
evidence that consumers are becoming more aware of the power that they hold
over the market and are practicing negotiation skills more frequently (Bonser et
al,, 2006). This behavior can potentially decrease profit margins for suppliers.

As many analysts have underlined, FIAT lacks of the fundamental ability of


understanding customers needs and tastes; this is relevant in order to produce
and offer car models able to satisfy customers expectations.

The threat of POWERFUL SUPPLIERS LOW.


(1) Large number of suppliers:
The bargaining power of suppliers is (very) low in the automobile industry.
A car consists of many parts that are provided by many suppliers. The
power of the suppliers is limited because suppliers are so numerous in the
industry. Suppliers of Fiat can be divided into two groups. The first group
involves two subsidiaries of Fiat (Magnetti Marelli and Teksid). It supplies
all the leading car makers (included Fiat) in Europe, North and South
America and Asia. In the second group there are hundreds of smaller firms
that supply parts and components to Fiat. In recent years, FIAT has
expanded its production abroad and so it has fostered the expansion of
many Italian suppliers as well.

(2) Low switching costs:


Manufactures can easily switch from one supplier to another supplier. In
the car industry, it is easy to find alternatives suppliers for parts.

The threat of SUBSTITUTES HIGH.


Substitutes performance:
The performance of the substitute sector will play an important role in the
success of Fiat. If the price of a competitor increases or the price of the

segment falls, it will have an effect on the quantity demanded in the


market.

Product differentiation:
Product differentiation is equally as important. There are many cars that
are similar to for example, the Fiat Punto. Fiat has to face though
competition when rivals like Peugeot, Ford and Opel launch their city
cars.

Switching costs:
There is a high treat of this force because it is easy for Fiat buyers to sell
their cars and switch to a competitive brand.

Buyers willingness:
Products that are economically priced, or have performance tradeoffs will
have an effect on the buyer willingness to commit. Although the Fiat cars
have gained a negative reputation and as a consequence, it is difficult for
Fiat to be a substitute and competitor for the other carmakers.
The threat of RIVALRY HIGH.
High concentration on national and international markets:
Rivalry among the competitors is very strong in this industry due to the
concentration on both the national and international markets. Major car
producing nations like the US, Japan, Italy, France, the UK, Germany, China
and India experience this intense rivalry.

Product differences:
Competitors have similar products and there is a reasonable lack of
differentiation opportunities. This results in more competition.

Loss of domestic market share:


In a constantly changing market, Fiat Auto faces strong competition,
mainly coming from abroad, in particular, from US car manufacturers such

as General Motors, Toyota in Japan, Tata Motors in India and Korea. Due to
increasing competition, FIAT's domestic market share has declined.

Price wars:
High levels of rivalry are indicated by such actions as price wars,
advertising campaigns and product developments keep them on the edge
of innovation and profitability. These actions have an impact on the
revenues of the car makers. Competition, particularly in pricing, has
increased in recent years. The demand for automobiles has decreased and
total global production for the automobile industry significantly exceeds
demand. Overcapacity combined with high levels of competition and
poorly performing economies, could strengthen pricing pressures. Fierce
competition results in price discounts and pressures on profit margins in
the industry. It is becoming more difficult for FIAT to increase or maintain
vehicle prices.

Lack of scale compared to peers:


Fiat lacks the scale to compete with large players in the markets in which
it operates. Many of its competitors such as Ford, Toyota and Volkswagen
are larger in size. Fiat top competitors, with larger scale and more
financial resources, limit the groups ability to compete effectively.

Strategic partnerships:
Fierce competition leads to strategic alliances. Car producers are trying to
find new ways to reduce overhead and increase revenue. Partnerships
help to create synergies (cf. joint ventures and alliances).

SWOT

Since the appointment of CEO Sergio Marchionne, the company has been
restructured and more organized in the way it is run. The decisions come
from the top and are clearly implemented. Fiat is still
pursuing a global strategy. Through its alliance with Chrysler it will be able
to re-penetrate the North American market, they used the Chrysler 500 as
its premium model, which had a great success in Europe
and in America. This is a breakthrough in Fiat history at the dawning of a
new age.
Strengths:
(1) Know How:
Fiat has had a long experience of the auto industry and contributed to the
development of this industry.
(2) Control:
Fiat has control over historic Italian firms: Ferrari, Alfa Romeo, Lancia and
Maserati.

(3) Design:
Its strength in design- Italian style differentiates itself from competitors.
Great names and designers, such as Giorgetto Giugiaro.
(4) Strong management team:
Strong management team including Sergio Marchionne. More openminded than the previous era of the Agnelli brothers.
(5) Reliable:
According to the Reliability Index (2009), Fiat cars are more reliable than
the industry average.
(6) Evocative Power:
Evocative power FIAT golden years (50s and 60s). Some models, such as
500, are evocative of the glorious age of the Italian style.
(7) Small Cars:
They are good at producing small cars.
(8) Qualified people:
FIAT has qualified personnel in its research centers.
(9) Environmental Commitment:
FIAT environmental commitment also on a European level.
Opportunities:
(1) Form alliances with companies such as PSA Peugeot Citroen, who
produce cars of similar price and size and quality.
(2) In some developing countries, cars tend to be simpler (no AC)
therefore they require less money to produce.
(3) There is potential to expand operations in emerging markets such as
India, and China.
(4) There is an absence of market penetration in developed markets such
as the U.S.
(5) Due to the integration of the Eastern European countries in the EU,
there is access to cheaper labor within the European Union.
Threats:

(1) Exposure to exchange rate volatility due to the economic crisis.


(2) Strength of Korean and Japanese car makers is increasing and
becoming more prominent in the automotive market.
(3) Italians are less loyal to domestic brands which undermines Fiats
loyalty to domestic customers.
(4) According to the IMF the global economy is still in a downturn. This will
cause a slow in sales and revenue from all fiats markets.
(5) Impact of regulation on the value chain flexibility. While changes in
taste and technology require constant re- configurations in the automotive
value chain, the
regulatory framework may make this task more difficult and costly.
Weaknesses:
(1) Too European:
Fiat could be seen to rely on the European market too much in terms of
sales and production with only one plant outside of the region, which is
Brazil.
(2) Lack of Scale:
Due to the fact that they are too European it shows a lack of scale
compared to their peers. However, Italy is still their biggest market with
24.1 % of revenue for fiscal year
2008 (Datamonitor 2009)
(3) Profit vs Losses:
Although Fiat finished 2008 with its best trading profit ever, the group
made a los of 410m Euros in the first quarter of 2009.
(4) Marketing:
Fiat should focus more on understanding its customer needs and increase
its local responsiveness. FIAT is not able to use Marketing as an important
source in order to
understand market trends. The result is the FIATs attempt to build
something which is perfect from an Engineering perspective but
absolutely far from customers needs and

tastes. Fiats culture is to far from dealers and customers that represent
the FIAT market.
(5) Management culture:
The management takes the concept of mature market to serious and so
focuses on services, assistance and price cuts (through promotions) more
than on innovation and
brand asset management.
(6) Engineering supremacy:
The supremacy of Engineering, Fiat is creating a product that is perfect
from an engineering perspective but not close enough to the customer
perspective
(7) Economies of scale:
FIAT tries to implement economies of scale, although it has not the
financial power to sustain them. In addition, this brings the company to
focus on quantity rather than
quality and innovation.
(8) Outsourcing:
The policy of outsourcing has been wrongly implemented.
(9) Anonymous models:
After the old models, the Panda and the UNO, FIAT models have not been
recognizable. This is of huge concern because it means that FIAT is not
able to exploit in the
Right way the great potentials that are offered by the Centro Stile.

Balance sheet
Financial Statements For Fiat Spa (F)

Year over year, Fiat S.p.A. has been able to grow revenues from 83.8B EUR to
86.6B EUR. Most impressively, the company has been able to reduce the
percentage of sales devoted to income tax expense from 0.75% to -1.08%.
This was a driver that led to a bottom line growth from 44.0M EUR to
904.0M EUR.

Annual

Currency in
Millions of Euros

Revenues

TOTAL REVENUES

Cost Of Goods Sold

GROSS PROFIT

Selling General & Admin Expenses, Total

As of:

Dec 31
2010
Restate
d
EUR

Jan 01
2012
Restate
d
EUR

Dec 31
2012
Restate
d
EUR

Dec 31
2013
Restate
d
EUR

35,610.
0

59,559.
0

83,765.
0

86,624.
0

35,880.
0

59,559.
0

83,765.
0

86,624.
0

30,611.
0

50,810.
0

71,422.
0

74,326.
0

5,137.0

8,749.0

12,343.
0

12,298.
0

2,922.0

5,255.0

7,163.0

7,073.0

4 Year
Trend

R&D Expenses

974.0

1,381.0

1,801.0

2,212.0

Other Operating Expenses

90.0

49.0

68.0

-77.0

OTHER OPERATING EXPENSES, TOTAL

3,986.0

6,685.0

9,032.0

9,208.0

OPERATING INCOME

1,151.0

2,064.0

3,311.0

3,090.0

Interest Expense

-908.0

-1,521.0

-1,822.0

-1,843.0

Interest And Investment Income

683.0

352.0

279.0

211.0

-225.0

1,169.0

1,543.0

1,632.0

Income (Loss) On Equity Investments

120.0

146.0

74.0

74.0

Currency Exchange Gains (Loss)

-19.0

-19.0

32.0

22.0

NET INTEREST EXPENSE

Other Non-Operating Income (Expenses)

-166.0

--

--

--

861.0

1,022.0

1,874.0

1,554.0

Merger & Restructuring Charges

-118.0

-1,177.0

-15.0

-300.0

Gain (Loss) On Sale Of Investments

16.0

8.0

-89.0

12.0

EBT, EXCLUDING UNUSUAL ITEMS

Other Unusual Items, Total

-53.0

2,079.0

-246.0

-251.0

Other Unusual Items

-14.0

2,100.0

-138.0

-114.0

706.0

1,932.0

1,524.0

1,015.0

EBT, INCLUDING UNUSUAL ITEMS

Income Tax Expense

484.0

534.0

628.0

-936.0

Minority Interest In Earnings

-80.0

-199.0

-852.0

-1,047.0

Earnings From Continuing Operations

222.0

1,398.0

896.0

1,951.0

378.0

--

--

--

EARNINGS FROM DISCOUNTINUED OPERATIONS

NET INCOME

520.0

1,199.0

44.0

904.0

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

520.0

1,199.0

44.0

904.0

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

142.0

1,199.0

44.0

904.0

Ratios
Profitability - Fiat Spa (F)

Return on Assets

Return on Equity

Industry Comparison

Industry Comparison

2.12%

15.69%

Return on Capital
Industry Comparison
4.69%

Margin Analysis - Fiat Spa (F)


Gross Margin

Levered Free Cash Flow Margin

Industry Comparison

Industry Comparison
13.75%

-0.72%

EBITDA Margin

SG&A Margin

Industry Comparison

Industry Comparison
7.51%

8.02%

Asset Turnover - Fiat Spa (F)


Total Assets Turnover

Accounts Receivables Turnover

Industry Comparison

Industry Comparison
1.0x

28.9x

Fixed Assets Turnover

Inventory Turnover

Industry Comparison

Industry Comparison
3.9x

6.7x

Credit Ratios - Fiat Spa (F)


Current Ratio

Quick Ratio

Industry Comparison

Industry Comparison
1.4x

1.0x

Long-Term Solvency - Fiat Spa (F)


Total Debt/Equity

Total Liabilities/Total Assets

Industry Comparison

Industry Comparison
323.52%

89.10%

Growth Over Prior Year - Fiat Spa (F)


Total Revenue

Tangible Book Value

Industry Comparison

Industry Comparison
7.24%

32.78%

EBITDA

Gross Profit

Industry Comparison

Industry Comparison
3.05%

0.13%

Receivables

Inventory

Industry Comparison

Industry Comparison
-4.60%

11.45%

Diluted EPS Before Extra

Capital Expenditures

Industry Comparison

Industry Comparison

2,195.09%

-7.13%

Cash From Ops.

Levered Free Cash Flow

Industry Comparison

Industry Comparison
24.39%

-66.42%

Chrysler Group

Top Competitors for Chrysler Group


Chrysler hopes its crisis remains in its rearview mirror. After
engineering an automotive resurrection by choosing a back-tobasics alliance with Fiat, the carmaker continues to
manufacture its Chrysler brands, including Dodge, Fiat, Jeep
Grand Cherokee, Jeep Wrangler, Town & Country, and Ram
vehicles at more than 30 plants. It ships some 2.4 million
vehicles every year. Chrysler's trademarked MOPAR
(MOtor PARts) automobile parts and service division
carries almost 300,000 parts, options, and accessories for
vehicle customization. Chrysler Group emerged from a US
government backed Chapter 11 bankruptcy in mid-2009. Fiat
controls the company. It filed an IPO in 2013 but withdrew it in
early 2014.

COMPETITORS
FORD MOTOR COMPANY
PEUGEOT SA

Volkswagen AG

FORD MOTOR COMPANY Rankings


#8 in FORTUNE 500 (June 2014)
S&P 500 (June 30, 2014)
#148 in FT Global 500 (June 2014)
#8 in FORTUNE 1000 (June 2014)
The country that gave us Sophia Loren and Leonardo da Vinci also
gave us the century-old Fiat. The group's cars range from models
like the popular Fiat Nuova 500 to the Alfa Romeo, Ferrari (85%
owned), and Maserati brands. Fiat holds a 53% stake in Chrysler,
and has management control of the US carmaker. Fiat reorganized
its operations in early 2011 and sent its agricultural and
construction equipment (led by 89% owned CNH Global),
commercial vehicles (Iveco), and most of the rest of its
nonautomotive operations to the newly created Fiat Industrial.

PEUGEOT SA Company Profile


Peugeot S.A. enjoys its space under L'Arc de Triomphe, besting
rival Renault to claim the top spot in the battle for auto sales in
France. Peugeot makes cars and light commercial vehicles under
the Peugeot and Citron brands. Peugeot is among the top
manufacturers in European passenger car and commercial vehicle
sales. Also part of Peugeot's
automotive operations are Faurecia (auto
parts),GEFCO (transportation and logistics), and Banque PSA
Finance (financial services for dealers and customers). Other
group products include motorcycles and scooters. Peugeot makes
most of its sales in Europe. The Peugeot family controls about
38% of the voting stock.

Volkswagen AG Rankings
DAX 30
#50 in FT Global 500 (June 2014)

Volkswagen AG Company Profile


With cars named for climate patterns, insects, and small
mammals, Volkswagen (VW) leads the Continent as Europe's #1
carmaker. Along with Golf (Gulf Stream reference) and the New
Beetle, VW's annual production of more than 7 million cars,
trucks, and vans includes such models as Passat (trade wind),
Jetta (jet stream), Rabbit, and Fox. VW also owns a garage full of
luxury carmakers --AUDI, Lamborghini, Bentley, and Bugatti.
Other brands include SEAT (family cars, Spain) and koda(family
cars, the Czech Republic). Late in 2009 VW acquired a 49.9%
stake in Porsche for about 4 billion (almost $6 billion) as the first
step in combining the two into an integrated car company.

Target Market
Chryslers target market is usually mid level as they are in to premium
/luxury products .Their focus is on selling high class people and they make
products for them

PESTEL

Political factors
The firm should be ware with all rules and regulation governing
the production of cars, such as fuel efficiency cars which are
highly emphasized, vehicle emissions, safety and standard issues
should be given priority.

Economic factor
At the beginning of the simulation the economy were in good
conditions, GDP growth were projected to raise from 1% to 1.5%
in period 1 and inflation to decline from 2,5% to 1.5% these were
fluctuation hence economy decline at end of simulation.

Social Factors
Cars is one of agent which pollute environments due to emission
of Co2 and noise, large cities, has affected with these emission
and lead to diseases related to breath and skin. Many traffic jams
which are time consuming, and increasing road accidents.

Legal Factors
The firm should comply with all laws and regulation with its
operations, such as gas emission laws, safety and standard
issues, vehicles regulations, compatibility spares manufactures

Technological factors
Cars manufactures are starting to introduce Alternative Energy
Vehicles, which are using electricity only (rechargeable batteries),
fuel cell, hydrogen, solar or hybrid. Despite of its expensiveness it
will be solution to energy efficiency and lowering pollution, but
during simulation we were not accessed to develop purely cars, or
hybrid models despite of its existence. Other technologies such as
synthetic materials, web procumbent technologies, JIT
Management, advanced logistics computer-aided design software,
increase efficiency and save money

Environmental factors,
Environment pollution, is one of challenging issues threaten the
world, car manufactures should pay attention in it issues, by
transforming their technology into alternative energy vehicles,
reduce emissions

SWOT
Opportunities
Growing of economy this led to increase on purchasing power
customers as well as growing of emerging markets

Threats
New laws might imposed regarding to gas emission and safety
issues, increasing competitions from other firms, introduction of
new technologies, as well as global economy downturn,
development of hybrid technologies might be threat for car
manufactures

Strength
At foundation of the simulation, all firms started with one car in
each at the Economy, Family and Truck, this give opportunity to
fair competition due to the fact, all firms within simulation were
started with zero competition, within these unexploited markets,
hence the firs firms which is risk taker to possibly gain lions share
compare to other firms which are risk averse.

Weakness
All firms were started with same situation simulation, hence
another firm can move into our future vehicle class before our
firm decide to move
Critical success Factors, are those that differentiate one products
or services from another in the eyes of consumes, can be
threshold features and differentiators

Threshold features, are those taken for granted to consumers in


decision of buying such as, fuel consumption, engine capacity and
durability whilst differentiators would be features such as music
system, climate system, GPS, Bluetooth technology.

During simulation, were able to upgrade or downgrade threshold


features depending how it perform in market despite for that
there were few options in case of differentiators this lead to many
vehicles ended being similar across all firms hence difficult to
distinguish from one to another.

Porters Five Forces:


Threat of New Entrants

Threat on new entrants during simulation it was limited hence it


was impossible for new firms to enter during the course of
exercise whilst in a car manufactures threats is low due to capital
intensive(amount of capital required to invest is very huge) hence
act as barriers for entry in high.
Threats of Substitutes

Car manufactures, also has substitute, due to increased number


of cars in roads and lead to congestion, high parking charges,
high cost of running a vehicles, lack of infrastructure such as
roads hence people prefer motor cycles, public transport, cycling
as substitute to cars, decline in economy will force people to
consider alternative of buy cars.
Bargaining power of buyers

Bargaining power of buyers is medium in sense that, during


simulation exercise, there were few choices to distinguish against
competitors this leads many vehicles appeared to be similar, due
to the fact all firms were started in same position, this implies
buyers will access to choose one cars and another.

Bargaining power of Supplier

Suppliers of cars components are disjointed hence and their few,


this led to car manufactures to have limited choices in terms of
buying components for their cars, hence leads to high bargaining
power of suppliers, which suppress profitability of car
manufactures.
Competitive Rivalry

Rivalry among existing firms is very high, due to the fact that all
firms were started in similar situation. Firm E compete with 6 firms
on which all implementing different strategies in order to perfume
better in the market.

Balance sheet

Currency in
Millions of Euros

Revenues

TOTAL REVENUES

As of:

Dec 31
2010
Restate
d
EUR

Jan 01
2012
Restate
d
EUR

Dec 31
2012
Restate
d
EUR

Dec 31
2013
Restate
d
EUR

35,610.
0

59,559.
0

83,765.
0

86,624.
0

35,880.
0

59,559.
0

83,765.
0

86,624.
0

4 Year
Trend

30,611.
0

50,810.
0

71,422.
0

74,326.
0

5,137.0

8,749.0

12,343.
0

12,298.
0

Selling General & Admin Expenses, Total

2,922.0

5,255.0

7,163.0

7,073.0

R&D Expenses

974.0

1,381.0

1,801.0

2,212.0

Other Operating Expenses

90.0

49.0

68.0

-77.0

Cost Of Goods Sold

GROSS PROFIT

OTHER OPERATING EXPENSES, TOTAL

3,986.0

6,685.0

9,032.0

9,208.0

OPERATING INCOME

1,151.0

2,064.0

3,311.0

3,090.0

Interest Expense

-908.0

-1,521.0

-1,822.0

-1,843.0

Interest And Investment Income

683.0

352.0

279.0

211.0

-225.0

1,169.0

1,543.0

1,632.0

Income (Loss) On Equity Investments

120.0

146.0

74.0

74.0

Currency Exchange Gains (Loss)

-19.0

-19.0

32.0

22.0

Other Non-Operating Income (Expenses)

-166.0

--

--

--

NET INTEREST EXPENSE

EBT, EXCLUDING UNUSUAL ITEMS

861.0

1,022.0

1,874.0

1,554.0

Merger & Restructuring Charges

-118.0

-1,177.0

-15.0

-300.0

Gain (Loss) On Sale Of Investments

16.0

8.0

-89.0

12.0

Other Unusual Items, Total

-53.0

2,079.0

-246.0

-251.0

Other Unusual Items

EBT, INCLUDING UNUSUAL ITEMS

Income Tax Expense

-14.0

2,100.0

-138.0

-114.0

706.0

1,932.0

1,524.0

1,015.0

484.0

534.0

628.0

-936.0

Minority Interest In Earnings

-80.0

-199.0

-852.0

-1,047.0

Earnings From Continuing Operations

222.0

1,398.0

896.0

1,951.0

EARNINGS FROM DISCOUNTINUED OPERATIONS

378.0

--

--

--

NET INCOME

520.0

1,199.0

44.0

904.0

520.0

1,199.0

44.0

904.0

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

142.0

1,199.0

44.0

904.0

Ratios
Profitability - Fiat Spa (F)

Return on Assets

Return on Equity

Industry Comparison

Industry Comparison
2.12%

15.69%

Return on Capital
Industry Comparison
4.69%

Margin Analysis - Fiat Spa (F)


Gross Margin

Levered Free Cash Flow Margin

Industry Comparison

Industry Comparison
13.75%

-0.72%

EBITDA Margin

SG&A Margin

Industry Comparison

Industry Comparison
7.51%

8.02%

Asset Turnover - Fiat Spa (F)


Total Assets Turnover

Accounts Receivables Turnover

Industry Comparison

Industry Comparison
1.0x

28.9x

Fixed Assets Turnover

Inventory Turnover

Industry Comparison

Industry Comparison
3.9x

6.7x

Credit Ratios - Fiat Spa (F)


Current Ratio

Quick Ratio

Industry Comparison

Industry Comparison
1.4x

1.0x

Long-Term Solvency - Fiat Spa (F)


Total Debt/Equity

Total Liabilities/Total Assets

Industry Comparison

Industry Comparison
323.52%

89.10%

Growth Over Prior Year - Fiat Spa (F)


Total Revenue

Tangible Book Value

Industry Comparison

Industry Comparison
7.24%

32.78%

EBITDA

Gross Profit

Industry Comparison

Industry Comparison
3.05%

0.13%

Receivables

Inventory

Industry Comparison

Industry Comparison
-4.60%

11.45%

Diluted EPS Before Extra

Capital Expenditures

Industry Comparison

Industry Comparison
2,195.09%

-7.13%

Cash From Ops.

Levered Free Cash Flow

Industry Comparison

Industry Comparison
24.39%

CNH
CNH Global N.V. Competition

-66.42%

CNH Global (Case New Holland) is one of the world's largest


makers of agricultural combines and tractors (by sales volume).
Its machinery, some 540 models, includes hay balers, and forage
and specialty harvesting and auxiliary equipment for both crop
and livestock farms. CNH also builds light-industrial and heavy
construction equipment, such as dozers, crawler and wheeled
excavators, graders, and telehandlers, for building, quarrying, and
demolition jobs. It has 40 manufacturing facilities, and sells and
services equipment in 170 countries via 11,300 dealers. Financial
services, CNH Capital America, are offered in North America and
other major markets. Fiat Industrial owns 88% of CNH.

Top Competitors for CNH Global


Competitors

Caterpillars

DEERE & COMPANY

KOMATSU LTD.

Caterpillars Rankings
#49 in FORTUNE 500 (June 2014)
S&P 500 (June 30, 2014)
Dow Jones Industrials
#81 in FORTUNE's Fastest-Growing Companies (September 2013)
#137 in FT Global 500 (June 2014)
#49 in FORTUNE 1000 (June 2014)

CNH INC. Company Profile


Whether digging, loading, paving, or moving, CNH does it all. The
company is the world's #1 manufacturer of construction and
mining equipment, which includes excavators, loaders, and
tractors, as well as forestry, paving, and tunneling machinery. It
also manufactures diesel and natural gas engines, industrial gas
turbines, and diesel-electric locomotives. Subsidiary CNH Financial
Services offers a slew of financing, leasing, insurance, and
warranty products and services for dealers and customers. Among
Caterpillar's other services are remanufacturing through CNH
Remanufacturing Services and rail-related upgrade, repair, and
maintenance services through Progress Rail Services.

DEERE & COMPANY Rankings


#80 in FORTUNE 500 (June 2014)
S&P 500 (June 30, 2014)
#310 in FT Global 500 (June 2014)
#80 in FORTUNE 1000 (June 2014

DEERE & COMPANY Profile


Deere & Co. is interested in seeing its customers go to seed and
grow. The company, one of the world's largest makers of farm
equipment, is also a major producer of construction, forestry, and
commercial and residential lawn care equipment. Deere operates
through three business segments: the agriculture and turf and
construction and forestry segments make up its equipment
operations; a credit segment provides financial services. Deere,
famous for its "Nothing Runs Like A Deere" marketing, sells John
Deere and other brands through retail dealer networks and also
makes products for outlets Home Depot and Lowes.

KOMATSU LTD. Rankings


Nikkei 225

KOMATSU LTD. Company Profile


Despite a name that means "little pine tree," Komatsu produces
an evergreen line-up of big equipment. The company is the
world's #2 construction equipment maker, behind Caterpillar.
Komatsu builds and sells building and mining equipment, from
bulldozers and wheel loaders to dump trucks and debris crushers.
Komatsu also produces industrial machinery, such as laser-cutting
tools, wire saws, and sheet-metal presses. Other lines include
generators, light armored vehicles, and diesel engines. Its
engineering and construction arm supplies prefabricated
structures, contracting, real estate sales, and leasing
services. Komatsu America represents its chief operations in North
America.

Target market
CNH target all agriculture and constructional companies. For agriculture
they have products like new Holland tractors etc which farmers holding up
high output from farms and there constructional companies they are
products are usually for constructional and they have buses which is
usually for transportation companies

CNH Global (CNH) SWOT Analysis


Strengths
Geographically Diverse Business
Geographically diverse business and revenue should help shield the business
from shocks in any one part of their business. Different countries or locations
around the world have different characteristics. Those characteristics do not
always match, therefore, a company can lower their risk by investing in part
of the world with low correlations. The lower the risk, the better. This lowers
risk and increases the value of the business over the long-term. This
statement will lead to an increase in profits for this entity. "Geographically
Diverse Business" is an easily defendable qualitative factor, so competing
institutions will have a difficult time overcoming it.

New Holland tractor

New Holland Tractor" has a significant impact, so an analyst should put more
weight into it. "New Holland Tractor" is a difficult qualitative factor to defend,
so competing institutions will have an easy time overcoming it.

Weaknesses
Heavy reliance on few suppliers
These statements will have a short-term negative impact on this entity, which
subtracts from its value.

Opportunities
Infrastructure Spending
Plans to spending large amounts of money in infrastructure should increase
the demand for construction related businesses. Significant spending on
school construction, highways, utilities, and the power grid. IT spending will
also increase to cope with the increase in demand for information to provide
advanced services. Material suppliers and manufacturing industries will also
benefit. Many countries around the world are increasing their infrastructure
spending in order to increase the economy. Infrastructure Spending will have
a long-term positive impact on the this entity, which adds to its value. This
statement will have a short-term positive impact on this entity, which adds to
its value.

Threats
Housing Crisis
Housing crisis lowers the company's assets and equity and makes it harder to
do business in the market. Lower equity lowers the amount of money that
can be loaned and thus limits the ability of the company to generate
additional income from loans. Pressure on mortgages, home equity growth
will slow. A major source of past revenue and profits will decrease and lead to
a decrease in future cash flow and stock value. Utility companies will see less
grow as the growth rate of new housing developments slows. A slowdown will
also affect landscaping companies.
Volatile Commodity Prices
Volatile commodity prices increase the risk to the company, since a sudden
change in commodity prices can hurt profits and increase the chances of
bankruptcy. It also makes long-term forecast more difficult and long-term
investments to meet demand more difficult. "Volatile Commodity
Prices" has a significant impact, so an analyst should put more weight into

it. "Volatile Commodity Prices" will have a long-term negative impact on this
entity, which subtracts from the entity's value. This statement will have a
short-term negative impact on this entity, which subtracts from its value. This
statement will lead to a decrease in profits. "Volatile Commodity Prices" is a
difficult qualitative factor to overcome, so the investment will have to spend
a lot of time trying to overcome this issue.

Porters Five Forces


Bargaining Power of Suppliers Low/Medium
CNH does not face a very high risk regarding the power of suppliers due to
the availability of raw materials. There are dozens of large companies that
provide the appropriate resources CNH needs to operate. If costs increase
dramatically for whatever reason or if there is another difficulty, CNH may
desire to change their suppliers and can do so without a severe setback.
Our suppliers play a key role in our commitment to excellence. We have
high standards for specifications, delivery, and price (CNH Corporate
Overview). This statement shows the power of CNH and their ability to
eliminate uncompetitive players in the market as well as the emphasis
they place upon having successful supplier relationships. CNH makes their
own engines and assembles their own machinery, which saves them a
large amount of money in the long run. If this were not the case, outside
suppliers who conduct these services would have a stronger sense of
power on price or other production decisions. The CNH Inc. Page 19
raw products such as steel, rubber, plastic, and other raw materials are
the only concerns of CNH and can be obtained through numerous
manufacturers. Although these raw product industries have control over
individual resource prices, the costs to customers will remain comparative
to maintain a competitive position among other suppliers. As a result,
these companies will be competing in somewhat of a price battle and CNH
will have less of a concern with the power of their suppliers.
Bargaining Power of Customers Medium
The size of potential customers is one of the major determining risk
factors with the bargaining power of customers. Larger potential revenues
from examples such as large multi-national corporations or even thirdworld countries have much more influence on CNH than do smaller
organizations. A country can exert tremendous pressure on corporations

to comply with the countrys requirements and needs. Large corporations


can have significant influence due to their size and the amount of product
they can potentially purchase from the manufacturer (Foothill). These
larger potential customers have more influence and potential revenue to
provide, leading to a larger dilemma with CNH finding ways to meet terms
with these organizations in order to receive substantial revenues.
Medium and small corporations have little influence in terms of volume,
but other factors can give them an advantage during negotiations, such
as little or no switching costs and the vast number of competitors
(Foothill). Although smaller organizations may attempt to compete upon
price much more intensely due to the variety of competition, these small
companies have less to offer a company as large as CNH and typically
search for the best price rather than the highest quality product or
service. Since CNH has such a strong emphasis on service and
relationships, this places them in a position where they are able to hold
their ground against many smaller entities and CNH Inc. Page 20
focus their main customer efforts on their nationwide and global growth
with larger corporations and various countries throughout the world.
Threat of New Entrants Low
Many barriers to entry have created severe difficulties for new entrants to
enter Caterpillars industry. The industry is highly capital intensive. A new
entrant not only faces high investment, there is already a significant
competition and large players around which demoralizes the new entrant
(Haisten). One main obstacle is the establishment of dominant
competitors who have controlled the industry for many years. It is
extremely challenging to try and enter an industry where the competition
is massive and the companies revolve around sustained competitive
advantages. Aside from the existing corporations, the industry includes an
incredibly large initial capital investment. The industry costs of machinery
and manufacturing are hard to tackle as a new entrant and are difficult to
compete unless the organization is large-scale. Maintaining any profits for
many years is another challenge. The overhead and associated costs with
entering the industry are challenging to surpass as a new entrant. The
combination of listed factors in this industry proves that CNH does not
face a strong threat.

Threat of Substitute Products Low


CNH has a significantly low threat of substitute products due to various
reasons. In the agricultural machinery industry, the equipment used by

CNH is the most efficient technology for the associated costs of operation.
Due to the highly specialized purposes of the machinery produced, there
may be some overlap between possible uses, but the machines face no
risk of substitution (Haisten). There is no other viable option for buyers to
consider for the task CNH Inc. Page 21
to be completed in a resourceful and timely fashion. For example, if a
company were to refuse the services of heavy machinery and focus on
standard human labor as an alternative, the timeframe and associated
expenses would be wasteful in comparison to what the major competitors
in the agricultural industry have to offer. CNH does not have to necessarily
concern itself with substitute products, but rather on maximizing the
reliability and functionality of the machinery they currently produce.
Competitive Rivalry within an Industry High
Hundreds of competitors in a worldwide industry have created a
significant threat to Caterpillar. They operate in an environment with 50
top competitors controlling roughly 80% of the market (Haisten). Since
CNH focuses more upon their service rather than diversification, the door
is left open to other competitors to take advantage of new opportunities.
Several competitors provide products that offer benefits to other
industries such as the military or consumer products. For example, Deere
& Company offers a variety of products to consumers regarding lawn care.
However, in an attempt to counter the issue of competitive diversification,
CNH is beginning to focus on global expansion instead. The company said
it expected growth of more than 10 percent in China and 8 percent in
India in 2010. That is much more robust than the 3.5 percent growth CNH
predicted for the United States and the 1 percent growth in Europe
(FundingUniverse). CNH must continue to find ways to remain competitive
in an industry filled with so many extremely competitive organizations.

PESTLE Analysis
Political

Federal support for overall fleet Efficiency improvement via


Super Truck program
Growing support for alternate fuel (NG/Bio-fuel) and hybrid
technologies
Environment

Rising awareness and market

Adoption for CNG/LNG/hybrid vehicles.


Growing demand from clients of fleets to provide green freight
transport solutions.
Social

Likely introduction of mega trucks (GVWR up to 93,000 lb.)


expected to negatively impact downsizing.
Mega Trends pointing to rising hub and spoke logistics and
Driving the need for best-in-class fuel
Economical

Fleet operators continue to face liquidity crunch.


Reduced profit margins and a
Consequential need for low TCO products
Market opportunity for entry and growth of low-cost trucks
Technology
Developments in complementary technologies such as
turbochargers and
After-treatment systems are enabling Downsizing.
Significant improvements in NG/
hybrid technologies are expected to
Indirectly drive downsizing.
Legal

GHG 2014-2018 mandate that regulates emission and fuel


efficiency
Levels for HD trucks
Regulations expected in the comfort and convenience segment
and rising importance for driver comfort.

Balance sheet of CNH


CNH Industrial N.V. may have more financial risk than other companies in the
Machinery industry as it is one of the most highly leveraged. Its Debt to Total
Capital ratio stands at 79.63%. However, an examination of near-term assets
and liabilities shows that there are enough liquid assets to satisfy current
obligations. Cash Collection is a strong suit as the company is more effective
than most in the industry. As of the end of 2013, its uncollected receivables
totaled 16.8B EUR, which, at the current sales rate provides a Days
Receivables Outstanding of 235.82. Last, inventories seem to be well
managed as the Inventory Processing Period is typical for the industry, at
92.55 days.
Dec 31
2010
Restate
d
EUR

Dec 31
2011
Restate
d
EUR

Dec 31
2012
Restate
d
EUR

Dec 31
2013
EUR

Cash And Equivalents

3,686.0

5,639.0

4,611.0

4,705.0

Short-Term Investments

112.0

68.0

4.0

--

Currency in
Millions of Euros

As of:

Assets

4 Year
Trend

Trading Asset Securities

--

86.0

90.0

74.0

3,798.0

5,793.0

4,705.0

4,779.0

Accounts Receivable

15,612.
0

15,409.
0

16,477.
0

16,832.
0

Other Receivables

1,573.0

1,837.0

1,615.0

1,728.0

17,185.
0

17,246.
0

18,092.
0

18,560.
0

TOTAL CASH AND SHORT TERM INVESTMENTS

TOTAL RECEIVABLES

Inventory

3,898.0

4,865.0

4,843.0

5,464.0

Other Current Assets

11.0

47.0

56.0

140.0

24,892.
0

27,951.
0

27,696.
0

28,943.
0

Gross Property Plant And Equipment

9,310.0

9,831.0

10,039.
0

10,342.
0

Accumulated Depreciation

-6,027.0

-6,307.0

-6,317.0

-6,346.0

TOTAL CURRENT ASSETS

NET PROPERTY PLANT AND EQUIPMENT

3,283.0

3,524.0

3,722.0

3,996.0

Goodwill

1,848.0

1,937.0

1,907.0

1,823.0

Long-Term Investments

737.0

616.0

470.0

495.0

Deferred Tax Assets, Long Term

1,308.0

1,284.0

1,228.0

1,212.0

Deferred Charges, Long Term

1,235.0

1,478.0

1,789.0

2,076.0

Other Intangibles

477.0

486.0

466.0

464.0

Other Long-Term Assets

1,093.0

1,296.0

1,583.0

1,932.0

TOTAL ASSETS

34,873.
0

38,572.
0

38,861.
0

40,941.
0

LIABILITIES & EQUITY

Accounts Payable

4,077.0

5,043.0

4,838.0

5,336.0

Accrued Expenses

--

1,128.0

1,186.0

1,266.0

Short-Term Borrowings

5,626.0

--

--

--

Current Portion Of Long-Term Debt/Capital Lease

--

9,235.0

8,761.0

7,542.0

Current Portion Of Capital Lease Obligations

--

5.0

6.0

6.0

Current Income Taxes Payable

508.0

660.0

217.0

303.0

Other Current Liabilities, Total

2,570.0

512.0

1,273.0

1,223.0

Unearned Revenue, Current

--

983.0

1,073.0

1,379.0

12,781.
0

17,561.
0

17,348.
0

17,049.
0

13,069.
0

10,968.
0

11,862.
0

14,134.
0

TOTAL CURRENT LIABILITIES

Long-Term Debt

Capital Leases

--

43.0

43.0

48.0

Minority Interest

740.0

838.0

748.0

52.0

Pension & Other Post-Retirement Benefits

2,157.0

2,158.0

2,213.0

1,967.0

Deferred Tax Liability Non-Current

52.0

111.0

168.0

219.0

Other Non-Current Liabilities

2,258.0

2,479.0

1,851.0

1,968.0

30,317.
0

33,320.
0

33,485.
0

35,385.
0

Common Stock

--

1,913.0

1,919.0

18.0

Retained Earnings

3,573.0

1,822.0

2,417.0

3,810.0

Comprehensive Income And Other

243.0

679.0

292.0

1,676.0

3,816.0

4,414.0

4,628.0

5,504.0

TOTAL LIABILITIES

TOTAL COMMON EQUITY

TOTAL EQUITY

TOTAL LIABILITIES AND EQUITY

4,556.0

5,252.0

5,376.0

5,556.0

34,873.
0

38,572.
0

38,861.
0

40,941.
0

Ratios
Ratio data TTM as of 06/30/2014
Profitability - Cnh Industrial Nv (CNHI)

Return on Assets

Return on Equity

Industry Comparison

Industry Comparison

3.90%

Return on Capital

15.26%

Industry Comparison

5.80%

Margin Analysis - Cnh Industrial Nv (CNHI)


Gross Margin

Levered Free Cash Flow Margin

Industry Comparison

Industry Comparison

20.99%

-0.97%

EBITDA Margin

SG&A Margin

Industry Comparison

Industry Comparison

12.40%

8.59%

Asset Turnover - Cnh Industrial Nv (CNHI)


Total Assets Turnover

Accounts Receivables Turnover

Industry Comparison

Industry Comparison

0.6x

1.5x

Fixed Assets Turnover

Inventory Turnover

Industry Comparison

Industry Comparison

6.1x

3.4x

Credit Ratios - Cnh Industrial Nv (CNHI)


Current Ratio

Quick Ratio

Industry Comparison

Industry Comparison

2.9x

2.2x

Long-Term Solvency - Cnh Industrial Nv (CNHI)


Total Debt/Equity

Total Liabilities/Total Assets

Industry Comparison

Industry Comparison

396.65%

86.40%

Growth Over Prior Year - Cnh Industrial Nv (CNHI)


Total Revenue

Tangible Book Value

Industry Comparison

Industry Comparison

4.30%

59.07%

EBITDA

Gross Profit

Industry Comparison

Industry Comparison

-1.06%

1.68%

Receivables

Inventory

Industry Comparison

Industry Comparison

7.07%

18.25%

Diluted EPS Before Extra

Capital Expenditures

Industry Comparison

Industry Comparison

-4.86%

10.89%

Cash From Ops.

Levered Free Cash Flow

Industry Comparison

Industry Comparison

-15.30%

29.49%