Analisi comparativa sull'andamento della gestione di FCA con il competitor Volkswagen AG.

Study is based on the data about FCA Group for a detailed study of its financial statements, documents and ratios, which were calculated for a purpose of this paper and finally to recognize and determine the position of the company. Moreover, their performance is compared to Volkswagen Group, based on their financial statement from 2017. The objective of this paper is to find and indicate reasons why one of those companies was performing better in the financial year 2017. Calculations and assessments made for the purpose of the work shows positive and negative side of FCA Group, based on comparison to their competitor on the market, Volkswagen AG. From the research and work made in the study it has been stated that FCA has much better productivity comparing to Volkswagen AG, as one employee contributes to produce more cars. Good efficient of employees as a relative low personnel cost is a plus. Another aspect is good management of assets. They utilize their assets in a better way than their competitor, Volkswagen AG, to generate revenue for a company. They have good inventory ratio and other ratios like ROA, ROI and ROE are on the side of FCA; they were good in 2017 in investing their operating capital and they utilized in an efficient way their equity to generate net income. Problems, which have been noticed are: as a first and the most serious one is the enormous debt. They net working capital 10 billion below zero is alarming. From calculations and ratios made FCA doesn't have enough resources to pay off their short-term debt. FCA issued a lot of notes, which in total results as a 9,626 million (9.6 billion) of debt. Second problem is decreasing level of shipments from year to year, even though the inventory turnover rate is relatively high. The reason which might cause decreasing shipments could be a result of low development and innovation of the company. They invested a small amount of money in innovation related to Volkswagen, which for a company and potential investors can be a sign that firm won't expand and grow. Another problem which was found out is high cost of production. Cost of sales relates to cost of revenues are higher for FCA than for a Volkswagen, which is a serious problem for a company which is in not stable financial situation. From all the things pointed out above, as well as in the full document, it is indicated that FCA was trying in 2017 to decrease their debt by utilizing their assets in an efficient way to generate revenue. Unfortunately, this strategy could not be enough to avoid bankruptcy. For a purpose of the work, the following solutions to solve the problems of FCA Group were created: ¿ Decrease cost of production by shutting down production plants in Europe and move them to less expensive production countries like Asia. Bad side of this would be necessity to fired thousands of people in production factories. ¿ Alliance with another corporation, which can be a key term for company long-term future success. ¿ Investing more in innovation and development could be a denominator for a company to expand and grow. Study is divided into 8 sections: Section 1 table of contents; Section 2 introduction to paper; Section 3 presents the companies; Section 4 deeply analysis of consolidated financial statements; Section 5 includes general thoughts concerning comparison of two companies; Section 6 presents thoughts about the work I did; Section 7 references; Section 8 List of figures.