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As soon as the financial accounts and reports of Audi 2010 were revealed, I conducted a comprehensive analysis on the related ratios and data and got and overall awareness of the business’s performance and financial position in the auto industry.

Generally speaking, despite the global economy is still experiencing a phase of fragility, Audi seized the opportunity of the recovery of the auto market in the first half of 2010 and outperforming its competitor in the auto industry. Based on the Audi Group key figures, production of cars and engines from 2009 to 2010 both increased 31%. There’s also an upward trend in the deliveries to customers. For the period January through June, the sales figures were up by more than 19 percent on the previous year, to nearly 555,000 units. That pattern is also reflected on the earnings data. As a result, the revenue for the first half year of 2010 reached EUR 17,565 million. Furthermore, the operating profit is EUR 1,331 million and the operating return on sales gone up by 7.6%. Based on the available data from the first half year of 2009 to the first half year of 2010, I have calculated a ratio analysis (see appendix 1) to show the performance of Audi in this period.

Appraisal of Financial Position and Performance of Audi Group Based on Ratio Calculation

To start with, Audi witnessed an upward trend in profitability. The Audi Group posted revenue of EUR17, 565 million in the first half of 2010, easily bettering the prior year figure. The rise is substantially attributable to the positive development in vehicle deliveries. The cost of sales increased rather more slowly than revenue to 14,872 million and the Audi Group thus posted a gross profit of 2,694million for the first six months and improved the gross margin to 15.3%. Distribution costs edged up to EUR 1,580 million in the period under review, while the administrative expenses reached EUR 157 million. The other operating result was slightly down on the previous year’s...