Mercedez Benz

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 6.61% in 2017 to 8.25% in 2021.
  • The average EBIT Margin for the period under analysis was 7.33%, with 2019 and 2021 performing the worst and best, respectively.
  • In the current year, Mercedes-Benz was able to cover its interest liabilities 37.86 times in the current year- compared to 2017 when it was 25.57 times.
  • The Asset turnover stood at 0.49 times in 2021 from 0.66 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Mercedes-Benz has increased year on year. The revenue increased by 1.9% between 2017 and 2018 and a further 3.2% increase was recorded between 2018 and 2019. There also occurred a/an decrease/increase of 10% between 2020 and 2021 (the current period). 
  • Mercedes-Benz’s performance in profitability looks good as the return on equity also recorded good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks strong, as current ratio/acid test increased from 1.15:1/0.89:1 to 1.17:1/0.93:1 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 high as it stood at 255% in the current year.

Source: Mercedes-Benz Annual Report

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