Profitability Analysis of BMW and Mercedes-Benz

Jorge-luis Astorga

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: Finance

Faculty Research Mentor: Huaibing Yu

Abstract:

My Abstract is based on two companies. BMW and Mercedes Benz, the two companies were chosen to to the similarities in product, Company Size, Market Area and Company goals. We research each profitability ratio’s on Gross Profit Margin, Operation Profit Margin, Net Profit Margin Return On Equity and Return on Assets. Having two companies that are rivals in the same industry and very correlated Market segments help differentiate whether higher or lower margins are industry related or segment related. We find each ratio by gathering relevant financial information in the past four years from 2020 until and including 2023. The financial information is found in the balance sheet and Income Statement located publicly on yahoofinance.com Our goal is to find metrics which give companies a competitive edge against one another to any investors looking to invest in an German Automotive company as well as give a real life insight of someone looking at two prospective companies

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