Renault Financial Statement

Presented by Ali Lakis & Mohamad Koussa

Company Presentation
Renault S.A. (Renault) is a French automotive company
which manufactures, sells, and distributes passenger cars,
light commercial vehicles, and associated components .
Renault originated in 1898 with the formation of Société
Renault Frères .
As of 31 December 2019, the company sold vehicles in
125 countries.
Project Objective

We aim from this project to study and analyze the impact of COVID on Renault in the
years 2019 – 2020.
Income Statement
Balance Sheet
Structure Ratio 
Current Assets Ratio= (Current Assets/ Total
Assets) *100 
Ratio 2019:60% 
Ratio 2020:64% 
Equity Ratio= (Equity/total Liabilities) * 100 
Ratio 2019: 40% 
Ratio 2020: 28%
 Current Ratio= Current Assets/ Current
Liquidity Ratio Liabilities

Ratio 2019: 1.02

Ratio 2020: 1.04

Quick Ratio= (current assets-Inventory)-

Total Current Liabilities

Ratio 2019: 0.94 || Ratio 2020: 0.96

Leverage Ratio
Debt to Assets Ratio= (Total debt/Total Assets) * 100
Ratio 2019: 48%
Ratio 2020: 54%

Assets to Equity Ratio= (Total Assets/Total Equity)

Ratio 2019: 3.45
Ratio 2020: 4.56
Activity Ratio
Rotation Ratio= (Average Inventory/ Cost of Goods Sold) *360
Rotation Ratio 2020= 54.86

Inventory Ratio= Cost of Goods Sold/ Average Inventory

Inventory Ratio= 6.5
Profitability Ratio
Gross Profit Margin= (Gross Profit on sales/ net Revenue from sales) *100
Gross Profit margin 2020: 14%
Gross Profit margin 2019: 18% 

Net Profit Margin= (Profit or net income /net revenue from sales) *100
Net Margin 2020: -18.5%
Net Margin 2019: 0.034% 
Conclusion and Recommendation 

- Sales have decreased 26% due to the

- Renault External investments in 2020 - Renaults is paying even amounts for - Renault is borrowing large amounts
pandemic mostly and to the late entry to
have caused big loss for the company research and developments in the years from credit firms internationally, it
Electric cars sales, competitors have
(4970 million Euro), Renault must find 2019 & 2020, we believe Renault must seems it is using these loans to cover its
gone far ahead in this market. Renault
sustainable and successful investments invest more in development since the losses, it is highly recommended to find
must work harder on strategies to
to recover its loss. world is evolving and changing less harmful sources to cover losses.
increase the sales again.

- Renault must maintain consistent

- Renault must find factories in cheaper
countries or cheaper factories for
manufacturing its cars.
quality since customers feedback
around the world trust more European
- Revenues have decreased between
made cars than the same brand cars
2019 & 2020
made of Europe, Renault must invest
more in quality assurance systems and
processes.