PROJECT IN ABM 123

Submitted by:

Aljon – Khan Chua

Christian Roy Flores

Clyde Vincent Tadeo

JR Clarence Saavedra
BMW
 We have compared the balance sheets of BMW, a well-known car manufacturing
company, in the year 2015 and 2014. This data was taken from amigobulls.com. We have
noticed that there is a large difference of the company’s total assets between the two succeeding
years, as well as in their Shareholder’s equity. The liabilities, on the other hand, don’t have a
huge gap between the two years.

Starting off with their assets, there was obviously a decrease in their total value of Assets;
current and non-current assets. BMW’s Net Property Plant and Equipment seem to have
crashed, having a difference of 43.23 billion US Dollars. Nothing was presented as to how it
crashed from $62.94 billion into $19.71 billion in such a short amount of time. Thinking about
how big the loss is would make your jaw drop. We also noticed something; BMW also lost
around 3 to 4 billion dollars in cash, around 2 billion worth of inventory and in other current
assets the company has. It may be tied to their Net Property Plant and Equipment. That is why if
we compare the total assets that the company had in those two years, $205.78 billion (2014) and
$191.06 (2015), we can say that there were big changes going on inside the company that
negatively affected some of their major assets.

The total amount of debts to be paid is lesser of BMW in 2015 than in 2014, based on the
presented values. Around 2014 there was a rise in the liabilities that they have to take note, but
then it decreased in the year 2015. They have lesser Accounts and Income taxes that must be
paid back in 2015, but there was an increase in the other liabilities. They had higher deferred
taxes last 2015 compared to 2014.

They lost at around $2 billion of their Shareholder’s equity by the time 2015 landed.
Their retained earnings seem to be negative in the year of 2015. There is definitely something
big happening inside the company. In 2014, BMW had retained earnings worth $47.35 billion,
and then in 2015, they had -$1.31 billion. It’s scary. They lost common stock net worth around
140 million US dollars.

We think that BMW was having a pretty rough time in 2015 considering all the data into
account. It’s either that, or they have taken a risk in order to improve even further through their
plans.
FIAT
 With the gathered information regarding FIAT, another car manufacturing company, and
its balance sheets, we can see that there is steady growth of the company in the years 2012 to
2013. Safe to say that at this rate, FIAT may not bloom rapidly but the growth rate is rather
reliable. They say that the slow and steady wins the race.

Fiat’s total assets have increased in 2013. Their cash, inventories, receivables, and
marketable securities have a steady pace in growing but there seems to be a $4.82 billion drop in
their other current assets. The non-current assets don’t seem to have much of a problem,
including their Net Property Plant and Equipment, but there are big changes in the other non-
current assets just like what happened in their current assets.
 With that, they also have higher liabilities in 2013 than in 2012. Even though their
deferred tax/income was lowered, there was, however, an increase with their Long term debts
and other long term liabilities. A difference of $9.88 billion dollars is estimated between the two
total liabilities between the two years.

There is a slight decrease in their Shareholder’s equity. Their retained earnings, and
capital surplus have, however, increased in 2012 to 2013, although if you look back the given
table, the previous years had higher values. If you combine their total liabilities and their
shareholder’s equity, 2013’s total ($115.26 billion) is higher than of 2012’s ($105.61 billion).

What we can conclude with this is that Newton’s Law of Interaction can be seen in the
balance sheets; “With every action there is an equal and opposite reaction”. FIAT gained, and at
the same time, lost.