Hi Sir,

Could you please provide ratio analysis comments for two companies ( Mercedes and Volkswagen ) as per below details, we have calculated ratios already, kindly comments on ratios - Profitability ratio, Quality of earning ratio, Efficiency ratio, Liquidity ratio, Gearing ratio, Investment ratio, and as cash flow. Pls confirm which company is good as per Investment point of view.

A Brief Financial Analysis of Mercedes Daimler Group & Volkswagen AG as per below ratios

Profitability ratio,

Quality of earning ratio

Efficiency ratio

Liquidity ratio

Gearing ratio

Investment ratio

Cash flow

Please comment, on which company is good from per Investment point of view.

Quality of Earnings Comp 2021 2020 2019 2018 2017 VAG 2.60 2.99 1.35 0.61 0.11 MAG 1.07 6.16 3.32 0.05 0.16Profitability Trends 2021 2020 2019 2018 2017 Gross Margin V-GM 18.81% 17.55% 19.52% 20.15% 19.49% Net Profit V-NP 5.95% 3.72% 5.34% 5.02% 4.87% ROCE V-CE 4.51% 2.47% 4.32% 3.89% 3.56% Gross Margin M-GM 22.93% 17.29% 17.09% 19.63% 20.92% Net Profit M-NP 8.25% 3.31% 1.57% 4.53% 6.47% ROCE M-CE 8.46% 2.83% 1.72% 5.45% 7.49%Gearing Ratios 2021 2020 2019 2018 2017 Debt Ratio - VAG 67.06% 69.13% 68.60% 66.88% 65.83% Debt Ratio - MAG 57.91% 67.08% 68.56% 64.52% 61.62% Interest Cover - VAG 395.46 - 241.37 128.38 1,065.71 1,593.10 Interest Cover - MAG 8.63 16.26 37.38 28.18 34.90Liquidity Ratios 2021 2020 2019 2018 2017 Current Ratio - VAG 1.26 1.22 1.16 1.13 1.04 Acid Ratio - VAG 1.00 0.96 0.88 0.85 0.79 Current Ratio - VAG 1.17 1.15 1.21 1.24 1.22 Acid Ratio - VAG 0.93 0.89 0.93 0.94 0.93