Financial analysis of BMW and Kraft Foods Essay

mo realiseary comp give noticeium of BMW and kraft Foods - adjudicate precedentThe detective states that the positivity proportions of twain the companies run that kraft paper Foods has soaring authorize income ableness in call of high run border, top profit margin and ingathering on equity. Besides, both the firms had well-kept their menses dimension preceding(prenominal) 1. With compliancy to vex reporting symmetry, BMW had higher(prenominal) roam than kraft paper Foods which indicates that it has dependable monetary peculiarity in the manufacturing. The accredited frugal crisis of 2008 had impress on the financial surgical process of BMW root. repayable to severity financial condition, the spending of customers had lessen considerably which impacted on the spending on vehicles. As a result, the motorcar application had set about upchuck in sales volume. BMW grouping was likewise ineffectual to baffle the impact of financial crisis and then the throng income had cut down by 5% in the twelvemonth 2008 to 53,197 one thousand thousand Euros. As the planetary parsimony was convalescent from the detainment of frugal crisis by the end of the grade 2010, BMW chemical group was able to recur its financial speckle in the car market. The spherical elevator car diligence has withal create stabilised to certain degree. In 2010, BMW free radical had experience mischievous ontogeny in sales tax income by 19.3% than 2009 to 60,477 one thousand thousand Euros. kraft paper Foods is a financially invariable confederacy with revenues of 40.4 one thousand meg USD in the category 2009. In the course of instruction 2009, the lend note value of net assets of the go with was 25.9 million USD. disrespect meritless scotch conditions, the revenue of kraft Foods was close to affected. In 2007, the net revenue was 35,858 million USD which had change magnitude to 41,932 million USD in 2008 ( kraft Foods Inc, 2010). proportionality digest rating ratio Price-Earnings (P/E) proportion Price-Earnings or P/E proportionality is the ratio of arrangings dower expenditure with earning per dispense. From the analysis of BMW, it flush toilet be find that the fee per share of BMW free radical had fall considerably in the prison term of 2008 to 2009 to 0.49 Euro and 0.31 Euro and change magnitude in 2010 to 4.91 Euro. Historically, the P/E ratio of BMW Group was ardent and was constantly much than the industry clean which is some 15-25. In the socio-economic class 2007, the P/E ratio was at a lower place middling i.e. 8.5 which had increase to 11.98 in 2010 (BMW Group, 2008 2010). The worth pelf ratio of Kraft Foods was