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Miele Financial Have 42,1 % Equity Ratio

• Miele Have Total Astes 2.530.955.726 Euro


• The Capital is 1.066.523.639
• The Eigenkapitalquote= The Eigenkapital /
Gesamten kapital
• The Equity Ratio = The Capital / The Total Assets
• According to Financial Statement is there no
Credit from Banks or Credit inistitutions
• This means that 42,1% of the company's assets
are financed through equity
High Equity Ratio gives Miele high
stability
Financial stability: A company Lower financing costs: A higher
with a higher equity ratio is more equity ratio usually results in
financially stable because it
depends less on the financial lower financing costs which could
credit, and that reducing the risk lead to better financing terms
of financial difficulties. and lower interest rates.

Attractiveness to investors: A
Greater independence: A high
higher equity ratio can indicate a
equity ratio allows the company
strong and stable company,
to be less reliant on external
making it more appealing to
financing sources, providing more
investors and potentially making
flexibility and decision-making
it easier for the company to raise
freedom.
capital
Analyze the budget and compare it with the budget for
previous years Illustrate growing in the Company
• An increase in the value of the general budget compared to the
previous year from 2,390 Mio to 2,530 Mio and the Total Assets
increased nearly 184 Mio Euro
• The decrease in the liabilities and obligations of the company by the
equivalent of 80 million euros
• The financial requirements for investments in fixed assets were fully
covered by the depreciation of fixed assets, which means that the
company finances its own investments
Miele have Strong Strategie leeway
• Miele haven't too much credit from anther Companies
And that illustrate that Depit-to-Equity
Ratio with nearly 50% ( Total Liabilities )
Analyise for The Liabilaties :
• Recordings the Financial Statement
Of Miele They have no Credit from Banks
• And the Liabilities from another Companies
Are only 0.3 % from the Capital which can give
Miele high leeway
Revenues increased by 12.2 %over the previous year
• 12.2% increase worldwide in revenue is generally a
positive sign for a company
• The average of Revenue of Hidden Champion is 9,9%

• 5.4% increase sales and Revenue in Germany


• Stabel Financial Company Berceuse The Revenue
Financing Recourse
• Self Financing : The Most Important Recourse of Financing of Hidden
Champions
• Positive Profit and cash Flow situation in the Company which I can
reuse them for financing on the Company

Return on Capital
Retained Earnings
Employed

Sale of Underutilized Reducing Dividends


Assets to Shareholders
Financing Recource
Private Equity Capital Markt

• Investment during Private • Issuing shares and bonds to be


Investors traded among the public
• Private Equity financing methode • Capital Markt financing will
will decrease in the Future increase in the future
• The main reason :Private equity • It helps greatly in increasing the
investors usually have an market capitalization and the
exit strategy within a five-year value of the company
framework.
the hidden champions are
skeptical and reserved when it comes to going public
• First, the reporting obligations associated with the listing are dreaded
:
These requirements are opposed to the preference for discretion ( The
Enterprenuers don’t prefer to di
expose their competitive strategies and disrupt their financial plan

• Second, there are well-founded doubts that a typical hidden


champion will achieve adequate market valuation :
Most hidden champions do not operate in sectors that are public’s and
investors’ interest

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