Welcome!

News Feed Item

Financial Assessment of the Global Automotive Components Industry

LONDON, March 10, 2014 /PRNewswire/ -- Reportbuyer.com just published a new market research report:

Financial Assessment of the Global Automotive Components Industry

A Holistic Approach to Ratio Analysis—The Need of the Hour

This financial assessment study analyzes the financial ratios of public companies across the globe in the Chassis, Powertrain, and Safety market segments. It computes industry benchmarks and identifies top companies and best practices. To assess the financial performance, ratios are divided into four categories including: profitability, liquidity, activity, and solvency. Weights are assigned to different ratios based on the industry, and an overall ranking is determined. Top performers in each sector are highlighted as well. The study also presents a portfolio analysis, wherein key indicators such as Sharpe's ratio and portfolio risk of top companies in each sector have been computed.

Executive Summary

•In the current economic scenario, maintaining healthy financials plays a key role in determining a company's future prospects.
•This study analyzes the financial health of public companies in the global automotive components industry, which is divided into Chassis, Powertrain, and Safety segments.
•Companies are ranked based on four broad categories of ratios: profitability, activity (reflecting financial management), liquidity, and solvency (reflecting risk management).
•Top companies are plotted based on their risk management rank and financial management rank.
•Top performers are identified and their key financials are presented.
•The study also discusses key challenges and issues faced by industry participants.

Research Objective and Scope

Research Objective
•To analyze the financials of public companies in the global automotive components industry (including Chassis, Powertrain, and Safety segments).
•To rank companies based on their financial and risk management and compare their position with respect to the industry.
•To identify key trends/events that can impact the performance of industry participants over the next 12 months.

Geographic Scope
Global Study

Broad Industry Classification
•Chassis
•Powertrain
•Safety

Ratios Analyzed
•Profitability
•Activity (Turnover)
•Liquidity
•Solvency

Study Period
Financial Year 2010–2011

Companies Analyzed
342 publically listed companies across the globe

Sources
•Frost & Sullivan in-house research expertise
•Established business and financial databases such as Capital IQ
•Company annual reports
•Published news
•Press releases

Who will benefit?
•Automotive components companies
•Private equity
•Venture capital investors
•Fund managers
•Retail investors
•Sovereign wealth funds
•Hedge funds
•Insurance funds other members of investing community

Key Risk Factors Affecting Industry—Business

Euro zone Crisis and High Inflation => Increase in Borrowing Costs => Global Economic Slowdown => Decrease in Demand

The ongoing debt crisis in the Eurozone is having an impact on all major global economies. In this current global scenario, companies are increasingly being cautious and risk-averse about their strategies. This, coupled with high inflation in developing economies/BRIC nations, is forcing the central banks of those countries to increase borrowing costs. BRIC nations contribute considerably toward revenue of the automotive original equipment manufacturers (OEMs). The demand for automotive components is directly related to the OEM industry. Around Xto X% of financing for buying vehicles is done through borrowing from financial institutions. Even a X% to X% increase in the financing costs can significantly affect consumer choice in buying a vehicle.

Signs of Slowing Down of Emerging Economies
From percent in April to June 2011, India's GDP growth decreased to percent in January to March 2012. With China's growth also decreasing, companies are finding it difficult to manage operations in the emerging economies. While inflation versus growth is a key balancing factor driving the slowdown in these economies, a part of this can be attributed to the Eurozone crisis. The European Union is one of the biggest foreign markets for emerging countries. For instance, around percent of China's exports and percent of South Africa's exports go to the European Union. Expansions into emerging economies is now a greater challenge for established Western companies. In addition, owing to a slowdown of growth rates in the Eurozone, interest rates are at very low levels (around Xpercent) to encourage capital expenditures/investments. If any major economy in the EU (say Italy, Portugal, Greece, or Spain) defaults, foreign institutional investors who have borrowed and invested in emerging markets are likely to withdraw their investments. This is anticipated to hit the domestic markets of the emerging countries.

Government Regulations
Government regulations with respect to exhaust emission, noise, safety, and pollution for plants are extremely high within the industry. It helps if the company has an in-house components division. The companies need to be pro-active to guess future regulations and if a product development strategy is in place, it helps them in adopting faster to new regulations.

Table Of Contents

1. Executive Summary
2. Definition of Key Terms
3. Research Objective and Scope
4. Research Methodology
5. Key Risks/Challenges Faced by Industry Participants
6. Chassis
7. Powertrain
8. Safety
9. Markowitz Portfolio Allocation—Determination of Industry Sharpe Ratios
10. Legal Disclaimer
11. The Frost & Sullivan Story

Read the full report:
Financial Assessment of the Global Automotive Components Industry
http://www.reportbuyer.com/banking_finance/capital_markets/financial_assessment_global_automotive_components_industry.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Investment_Banking

For more information:
Sarah Smith
Research Advisor at Reportbuyer.com  
Email: [email protected]  
Tel: +44 208 816 85 48
Website: www.reportbuyer.com

SOURCE ReportBuyer

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and valu...
SYS-CON Events announced today that Twistlock, the leading provider of cloud container security solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Twistlock is the industry's first enterprise security suite for container security. Twistlock's technology addresses risks on the host and within the application of the container, enabling enterprises to consistently enforce security policies, monitor...
This talk centers around how to automate best practices in a multi-/hybrid-cloud world based on our work with customers like GE, Discovery Communications and Fannie Mae. Today’s enterprises are reaping the benefits of cloud computing, but also discovering many risks and challenges. In the age of DevOps and the decentralization of IT, it’s easy to over-provision resources, forget that instances are running, or unintentionally expose vulnerabilities.
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.