Presentation - Daimler Vs Tata - 1.0 - 2.0 - 3.0 - 4.1

MULTINATIONAL
FINANCIAL
MANAGEMENT
Daimler vs Tata
MYDDA, FAWAD, CHRIS & SAMUEL MULTINATIONAL FINANCIAL MANAGEMENT _ DIAMLER VS TATA 27.11.2021 1
Agenda
1.0 Introduction
2.0 Annual Report & Full Year Results – Daimler 2019

2.1 The Business of Daimler
2.2 Understanding the Main Highlights of the Financial Report
2.3 Going into the Financial Ratios - Calculations
2.4 Interpretation – The Business Health of Daimler
3.0 Annual Report & Full Year Results – Tata 2019

3.1 The Business of Tata
3.2 Understanding the Main Highlights of the Financial Report
3.3 Going into the Financial Ratios - Calculations
3.4 Interpretation – The Business Health of Tata
4.0 Conclusions
5.0 References
2
MYDDA, FAWAD, CHRIS & SAMUEL MULTINATIONAL FINANCIAL MANAGEMENT _ DIAMLER VS TATA 27.11.2021
Introduction – Daimler?
Preamble:-
The global purchase of automotive vehicles is estimated to rise by 23% due to, but not limited
to, innovation in automotive fueling (clean fuels i.e. solar, electric), increases in consumer
purchasing power, reduced taxes on imported vehicles, etc..
With VW, Daimler, Toyota, BMW, Kia, Ford and Tata are among the vehicle manufacturers to
benefit heavily from this sale of vehicles across the world. An entrepreneur is seeking to invest in
two of these companies (Daimler or Tata) in order to benefit from the boom.
A Team of McKinsey Consultants have been tasked to advise this investor on this strategic
decision looking at the Financial Reports of both companies for 2019.
Below discusses the points taken into account.
(will remove much of the texts and add more effects)

3
Agenda
According to the McKinsey Automotive Revolution – Perspective Towards 2030 Report
Automotive sales is expected to rise and will be driven by

 shared mobility
 connectivity services
 feature upgrades
new business models could expand automotive revenue pools by about 30 percent, adding up to $1.5 trillion
4
Annual Report - Daimler
2.1 The Business of Daimler
Daimler AG is one of the world’s most successful automotive companies.
The Group is one of the leading global suppliers of premium cars and one of the world’s largest
manufacturer of commercial vehicles.
5
2.2 Understanding the main highlights of the Report
6
2.3 Financial Ratios
A. LIQUIDITY RATIOS
2020 2019
Current Assets -
Working Capital = Current Liabilities = 15,455 21,998
= 15,455 21,998
2020 2019
Current Ratio = Current Assets = Xxx xxx
Current Liabilities Xxx Xxx
= 1.15 1.21
7
A. LIQUIDITY RATIOS
2020 2019
Current Assets -
Quick Ratio = Inventories = Xxx Xxx
Current Liabilities
= 115,263.70127,799.72
2020 2019
Cash Ratio = Cash = Xxx xxx
= 0.23 0.18
8
A. LIQUIDITY RATIOS
2020 2019
Operating Cash-flow = Operating Cash-flow = Xxx xxx
= 0.075 xxx
9
B. EFFICIENCY RATIOS
2020 2019
Inventory Turnover = Cost of Goods Sold = Xxx Xxx
Average Value of
Inventory xxx
= xxx Xxx
2020 2019
Account Receivable
Turnover = Annual Credit Sales = Xxx xxx
Account Receivables Xxx Xxx
= xxx xxx
10
2020 2019
Average Collection
Period = Accounts Receivable = Xxx Xxx
Annual Credit
Sales/360 xxx
= xxx Xxx
2020 2019
Fixed Asset Turnover = Sales = Xxx xxx
Net Fixed Assets Xxx Xxx
= xxx xxx
11
2020 2019
Total Asset Turnover = Sales = Xxx Xxx
Total Assets xxx
= xxx Xxx
2020 2019
Account Payable
Turnover = Total Purchases = Xxx xxx
Average Accounts Payable Xxx Xxx
= xxx xxx
12
2020 2019
Working Capital
Turnover = Sales = Xxx Xxx
Average Working
Capital xxx
= xxx Xxx
13
C. COVERAGE RATIOS
2020 2019
Times Interest
Earned = EBIT = Xxx xxx
Interest Expense Xxx Xxx
= -13.64 -4.90
2020 2019
Cash Coverage = EBIT + Non-Cash Expenses = Xxx xxx
= -30.42 -13.74
14
D. PROFITABILITY RATIOS
2020 2019
Gross Profit Margin = Gross Profit = Xxx xxx
Sales Xxx Xxx
= 16.58% 16.88%
2020 2019
Operating Profit Margin = Net Operating Income = Xxx xxx
Sales Xxx Xxx
= 4.28% 2.5%
15
2020 2019
Return on Total
Assets = Net Income = -2,330 -1,121
Total Assets 285,737 302,438
= -0.0082 -0.0037
2020 2019
Net Profit Margin = Net Income = Xxx xxx
Sales Xxx Xxx
= -1.50% -0.65%
16
2020 2019
Return on Common
Equity = Net Income = -2,330 -1,121
Total Common Equity
=
2020 2019
Return on Equity = Net Income = -2,330 -1,121
Total Equity 62,248 62,841
= -0.036 -0.018
17
E. MARKET VALUATION RATIOS
2020 2019
Price / Earning = Stock Price = 57.79 49.37
Earnings per Share 3.39 2.22
= 17.05 22.24
18
2020 2019
Price / Book = Stock Price = 57.79 49.37
Book Value per Share 3.39 2.22
= 17.05 22.24
19
F. LEVERAGE RATIOS
2020 2019
Total Debt Ratio = Total Liabilities = 99,809 105,802
Total Assets 285,737 302,438
= 34.93% 34.98%
2020 2019
Longterm Debt Ratio = Long-term Debt = 123,680 105,802
Total Assets 285,737 302,438
= 43.28% 44.23%
20
F. LEVERAGE RATIOS
2020 2019
Debt to Equity Ratio = Total Liabilities = 99,809 105,802
= 1.60 1.68
2020 2019
Long-term Debt to
Equity Ratio = Long-term Debt = 123,680 133795
= 198.6 212.9
21
Annual Report - Tata
3.0 The Business of Tata
Tata Motors Group is a leading global automobile manufacturing company. Its diverse portfolio
includes an extensive range of cars, sports utility vehicles, trucks, buses and defense vehicles.
Tata Motors is one of India's largest OEMs offering an extensive range of integrated, smart and e-
mobility solutions
22
A. LIQUIDITY RATIOS
2020 2019
Current Assets -
Working Capital = Current Liabilities = Xxx xxx
-
= 12,242.06 9,711.51
2020 2019
Current Ratio = Current Assets = Xxx xxx
= 0.53 0.58
23
A. LIQUIDITY RATIOS
2020 2019
Current Assets -
Quick Ratio = Inventories = Xxx Xxx
Current Liabilities
= 13,568.61 13,229.10
2020 2019
Cash Ratio = Cash = Xxx xxx
= 0.083 0.21
24
A. LIQUIDITY RATIOS
2020 2019
Operating Cash-flow = Operating Cash-flow = Xxx xxx
= -0.56 0.27
25
C. COVERAGE RATIOS
2020 2019
Times Interest
Earned = EBIT = Xxx xxx
= 3.71 5.69
2020 2019
Cash Coverage = EBIT + Non-Cash Expenses = Xxx xxx
= 9.25 10.52
26
2020 2019
Gross Profit Margin = Gross Profit = Xxx xxx
Sales Xxx Xxx
= 98.14% 98.11%
2020 2019
Operating Profit Margin = Net Operating Income = Xxx xxx
Sales Xxx Xxx
= 10.30% 10.85%
27
2020 2019
Return on Total
Assets = Net Income = xxx Xxx
Total Assets Xxx xxx
= xxx Xxx
2020 2019
Net Profit Margin = Net Income = Xxx xxx
Sales Xxx Xxx
= -4.20% 9.58%
28
2020 2019
Return on Common
Equity = Net Income = -2,330 -1,121
Total Common Equity
=
2020 2019
Return on Equity = Net Income = -2,330 -1,121
= -0.036 -0.018
29
2020 2019
Price / Earning = Stock Price = 57.79 49.37
Earnings per Share 3.39 2.22
= 17.05 22.24
30
2020 2019
Price / Book = Stock Price = 57.79 49.37
Book Value per Share 3.39 2.22
= 17.05 22.24
31
Thank you
MYDDA, FAWAD, CHRIS & SAMUEL MULTINATIONAL FINANCIAL MANAGEMENT _ DIAMLER VS TATA 27.11.2021 32

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MULTINATIONAL

2.0 Annual Report & Full Year Results – Daimler 2019

3.0 Annual Report & Full Year Results – Tata 2019

Below discusses the points taken into account.

(will remove much of the texts and add more effects)

Automotive sales is expected to rise and will be driven by

Daimler AG is one of the world’s most successful automotive companies.

E. MARKET VALUATION RATIOS

Price / Earning = Stock Price = 57.79 49.37

Earnings per Share 3.39 2.22

E. MARKET VALUATION RATIOS

Price / Book = Stock Price = 57.79 49.37

Book Value per Share 3.39 2.22

E. MARKET VALUATION RATIOS

Price / Earning = Stock Price = 57.79 49.37

Earnings per Share 3.39 2.22

E. MARKET VALUATION RATIOS

Price / Book = Stock Price = 57.79 49.37

Book Value per Share 3.39 2.22

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