Michelin : financial case study

Type :

Presentation

Pages :

12 pages

Format :

.doc

Published date :

01/16/2009

Category :

Economics & finance

Sub category :

Finance

Oboulo.com selection criteria

$ 19.95 Add to cart

Summary :

Introduction.
The historical analysis.
1. Usage of assets by Michelin.
2. Profitability of Michelin.
3. The borrowings of Michelin.
4. The financial liquidity of the Michelin group.
5. The goodwill of Michelin amongst its investors.
The capital structure of Michelin.
1. Financial leverage of Michelin.
2. Capital structure analysis of the firm from different points of view.
Analysis of michelin's dividend policy.
1. The dividend in ten years.
2. Net dividend per share in 10 years.
3. Net income including minority interest in 10 years.
Pros and cons.
Conclusion.
Bibliography.

Abstract

The world tire market was equal to 80 billion dollars in 2005. That is to say that each year more than 1 billion tires are sold for cars and light trucks. 75% of the sales are for European, North American and Asian countries. michelin is the leader of this market in those areas because it deals with about 75% of the sales. The tire market is growing market: a growth of about 3% each year. The three largest tire manufacturers account for 55% of the world market. michelin is the world number one tire manufacturer. It owns 20% market share. The purpose of this report is to study the financial health of michelin. For this, first we will make an historical analysis of the firm over the last four years, then analyze the debt structure and at last, study their dividend policy. This summarized board of figures show us that revenues of michelin are quite steady during the last 4 years. However, there is a slight increase in retained earnings. As regards the stock price for Group michelin, the figures in the board are the last values of each year. To have a best view of the stock price variations, there is a graph below of the stock price of michelin during the five last years.