Task One
Using the Annual Report and Accounts of VOLKSWAGEN AG:
(available at: https://www.volkswagen.co.uk/about-us/company/annual-reports)
You should:
(a) Evaluate the performance of VOLKSWAGEN in the following areas, using ratio analysis:
- Profitability
- Liquidity/Solvency
- Working capital efficiency
- Long term financial structure
- Investors' perspective
You should summarise your findings and make particular reference to the interests of the different stakeholders of the company.
i) You may use earlier years' financial accounts to supplement your analysis if you wish to be specific with certain trends that you have identified.
ii) In addition you could also consider the performance of VOLKSWAGEN in comparison with its peer group of competitors.
Note: Any accounting ratios for VOLKSWAGEN must be calculated (and workings shown) and not extracted from external databases, although, further analysis may be supported by downloading ratios from external databases for competitor companies.
Task Two
Considering your response to Task One and any other, well-researched, ‘fundamental' information that may impact on VOLKSWAGEN, you are required to provide advice, accompanied by rationale, as to whether you would recommend a buy, sell or hold (if they are already owned) policy for investors/potential investors in VOLKSWAGEN shares.
Note that the ‘fundamental' information may relate to the car manufacturing industry, in general, as well as to VOLKSWAGEN, specifically.