Analysis of Hyundai Motor Company Essay Example | Topics and Well Written Essays - 2000 words

Analysis of Hyundai Motor Company - Essay ExampleThe society in focus for this report is Hyundai motors. Hyundai is a Korea based company but it has grown steadily in the automotive market over the past few years. Automotive industry is super competitive these days, according to Bloomberg Businessweek (2012), the US automotive market is highly competitive these days, home companies like General Motors, Ford Motor Co. and Chrysler Group LLC are judge to lose market character to companies like Toyota and Honda. Hyundai Motor Co. has reported to have doubled its share in US automotive market as compared to their share in 2005. It is still expected to gain 0.1 % market share more than than the last year. According to the customer retention study carried out by J.D. authority and associates in 2011, Hyundai has been declared to be number one in customer retention. According to the study Hyundais customer retention rate has increased by 4 points thus raising it to 64% in the year 2 012, which implies that among the automotive brands customers were the most loyal towards Hyundai. Its brand name is currently measured to be well $5 billion. As the future of every company is based on the relations it has with its customers, thus its safe to say that Hyundais future seems even more promising. In this paper the companys performance go away be analyze as to see whether its market share value, which is currently $ 203.16 (Won 229,000), according to the companys overview, reflects the actual performance of the company or not. As the consolidated reports for the year ended 2011 are not available yet, so the abbreviation will be carried out for the year ended 2008 to year ended 2010. Along with the comparison with last years, the performance of the company will overly be compared with the financial performance of Toyota Corp. Financial Analysis As the purpose of this paper is to evaluate the reflection of the companys performance on its share value, the basic analys is will be carried out on the profitability of the company with relation to the shareholders equity. Keeping the performance of the company from the year 2008 to 2010 in mind, it will be analyzed how the company is performing over the past few years as well as with its competitor Toyota Corp. The profit margin of the company drastically put down to 4.42% from 13.7% in 2009. The company has been able to recover a bit, the profit margin has increased to 7.09% in 2010, and even though the consolidated statements of the company for the year 2011 are not yet released, it has been reported that Hyundai has broken its sales records in the year 2011, so a probable increase in profitability can also be predicted. As opposed to the sketchy performance over these years, the company is still doing better as compared to Toyota Corp., which reported a profit margin of just now 1.54% in the year 2010. A companys revenue is highly dependent on the fact that how the company is utilizing its assets for generating sales every year, as is defined by the net return on assets, which has prominently increased for Hyundai over these three years from 2.71% to 19.3%, it would