Grammer – Financial Stats

by leigh1424

Annual reports

As a read through the reports I’m a little unsure what information to focus on. There is 182 pages of company information and financial data. It was a little overwhelming. So, I decided to focus on the highlights over the last two years. The 2018 annual report starts with financial highlights from 2018 and 2017. Even though the report is in Euros I am still hoping to follow the financial trail. It’s a high-level detail of revenue, profit and loss and assets. I’m a little curious how much a Euro dollar converts to an Aussie dollar. The annual reports list group revenue in 2018 was 1,861 million Euro. I find out that one euro equates to 1.63 dollars. Therefore 1,861 million would equate to 3,033M AUD. There was also a similar group revenue of 1,786 Euro in 2017. A slight increase from 2017 to 2018. After learning quite a few ratios in the last semester I could easily identify some of the acronyms the annual report was detailing.

The income statements list earnings before income tax, depreciation and amortization (EBITDA). You can see 2018 have a lower EBITDA of 101M EURO. It then shows the earnings before income tax (EBIT). We did this exercise in the last semester where we separated the financial and operation assets, liabilities, revenue and expenses. After deducting the income tax from the earnings Grammer has an EBIT Margin on 2.6% in 2018 and 3.7% in 2017. The above table also lists the operating earnings before income tax. From an operating perspective Grammer’s operating EBIT is a lot higher at 75 M EURO. In both years Grammer has made an operating profit of 23M EURO in 2018 and 32M EURO in 2017. I’m a little curious what the 2016 and 2015 years invested in retained earnings. From the 2015 and 2016 results below you can see a steady increase in revenue between the four years, however a decrease in net profits. Net assets have increased each year however the financial debt has increased in 2018 which could have contributed to the lower gross margin for 2018.

The share price has also decreased in 2018 after a steady climb from 2015.

I find these annual reports much more detailed than the company I had last term. I can easily identify the highlights from 2018 and I’m going to suggest the higher debt was from the below acquisition

Some other interesting facts of Grammer as I read through the annual reports

I could continue with 182 pages of information, unfortunately there are other assignments to finish. This is a very impressive company and with 14000 employees in 19 countries worldwide with forty companies I can see why this company has been successful in its endeavor’s. As I continue to discover the financial stability of this company I will endeavor to update through my blog.

My Company

by leigh1424

My Company – Grammer

Well I might as well start with my initial thoughts of my company. It actually took me at least ten minutes to figure out how to read the website in English. Grammer is a German company that develops and manufacture components and systems for car interiors and also driver and passenger car seats. They have companies in over twenty countries throughout the world. However not in Australia.  During these ten minutes I was in a state of panic. I thought to myself this cant be correct. Why have I been given a German company and not understand one single thing on their website. How was I going to transcribe their annual reports into financial statements? I couldn’t even find their annual reports or any German words that would be similar. After these ten minutes of panic I found a little button that said EN. Then in awe the whole website turned to English. During a conversation with Martin we discussed the complexity of this company. It certainly will be more of a challenge than Scan Tech which I had last semester. The annual report alone is over two hundred pages.

Grammer has secured markets in a range of commercial and private vehicles including rail, buses, construction equipment and trucks.

While exploring their website (now I can read it) I discover the below award

Below are a few snapshots of there financial section. There is 48 pages of updates.

I have included some links below for videos of their products

https://www.grammer.com/en/company/innovation.html

https://www.grammer.com/en/products-markets/commercial-vehicles.html

By the end of this semester it very likely I will be more informative about cars then my husband and he has studied them for over twenty years. I’m off to read a few hundred pages of annual reports.

Feedback is great

by leigh1424

I was a little anxious to read my feedback. I didn’t want to look like a fool with people pointing out all my mistakes. However I can now say a little feedback is a wonderful exercise. It gives you another perspective on your work and I appreciate people taking time out and having a look. I have attached my step 3 with some feedback given and some feedback received.

ASS# 2 Step 3Download

Thoughts and Feelings on Step 3

by leigh1424

Well what a feat… I can say I struggled enormously with this chapter. I think in total I read Chapter 4 at least 5 times. Three of those times was on holidays at Bargara Beach. There was so many different terminologies and formulas that I found I had to try and re-instate my company to understand them. This helped me immensely. I worked through each concept and every time I came to the terminology of FCF, economic profit or Operating Income (OI) or Net Operating Assets (NOA) I would work through re-instatement of my financial statements to understand these terminologies.

 A wonderful joint venture was the videos that Maria posted on re-instating the financial statements. I watched one of these (over Easter and eating chocolate) each night and at the same time re-instated my company financial statements. I don’t think I could have done the cash (split between O&F) or worked out the tax benefit/expense without the help of these videos. I found the footnotes really helpful in my annual report as they break down each component at the end of the report. Hopefully I have allocated them all correctly as I must admit I went through each line item a few times. I also used the free space at the bottom of my spread sheet to work out each hint to ensure that the figures balanced to either the original statements or as mentioned in the videos. I also used this space to practice with the different formulas of FCF, Economic profits etc.

I am a numbers person and love the surge of excitement when the numbers balanced. Maria gave some great hints about matching the debits to the credits. It took me a while to understand this concept and I had to change the formula to match the below as it was a different scenario to Maria’s company.

I also find as I give feedback on other peers re-instated financials, I am also learning how other companies operate and interpret their financial realities.

I have also got back into the swing of peerwise. I slackened off while I was madly trying to concentrate on this chapter.

Very exciting we are over half way through this term. I can see the light …

Happy learning 😊