Mercedez Benz

Key Performance Metrics

  • The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from 1.57% in 2019 to 9.48% in 2023.
  • The average EBIT Margin for the period under analysis was 9.34 % with 2022 and 2019 performing the worst and best, respectively.
  • In the current year, Mercedes Benz Interest Cover was 80.94 times – compared to 2019 when it was 5.35 times.
  • The Asset turnover stood at 0.59 times in 2023 from 0.59 in 2019, implying a low performance or Assets of the business in relation to revenue.

Profitability

  • The revenue of Mercedes Bens has shown a mixed trend year on year. The revenue decreased by 29.50% between 2019 and 2020 and a further 9.95% increase was recorded between 2020 and 2021. There also occurred an increase of 2.13% between 2022 and 2023 (the current period). 
  • Mercedes Benz performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
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Liquidity

  • The company’s result in liquidity looks good, as current ratio/acid test increase from 1.21:1/0.93:1 to 1.26:1/0.93:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.

Capital Structure

  • Mercedes-Benz is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 1.83 in the current year.

Source: Mercedes-Benz Annual Report

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