GM financial analysis

V. FINANCIAL ANALYSIS

Financial public presentation
Historical Fiscal Year Performance
Over the five full fiscal year periods from FY02 to FY06, GMs sales and clear revenues average annual maturation rate was 4.17%(from the historical offset rate table), increasing from $178 one million million in FY02 to $207 one million million million in FY06. The following chart shows gross revenue and Net Revenue for GMs Automotive and other operations and GMs Financing and Insurance Operations. As you can see in the chart below, GMs Finance and Insurance Operations continue to grow, from $28 billion in FY02 to $34 billion in FY06 (a 24.6% profit). Also pecker that from FY05 to FY06 GMs Auto and Other operations contributed the largest increase in Sales ($12.7 billion, or 8%).


In hurt of international results GMs Asia Pacific, Europe, and Latin America regions returned to profitability. In China, GM has a really strong growth in sales and go on profitability. GMs sales wad increased more than 500,000 units. In Europe, GMs growth was stronger than FY2005, with the sales up to 2 millions units. The growth of sales in Europe seems to be continued since GM reached an agreement with European labor unions that should help GM Europe improve its constitute position.



North America is by far GMs largest market in which GM slightly improved its concluding loss posted a $5 billion winnings improvement, with net loss of $799 million. This improvement was result from the implemented hail-restructuring plan.
As the following chart shows GMs Net Income has been very unstable over the last five years reflecting the continued difficulty GM experienced in successfully implementing changes to produce the company in order to improve financial performance. Especially, net income declined from gain $1.7 billion in FY02 to loss -$1.98 billion in FY06. GMs FY06 net income improvement was mainly from cost reduction in North America on exchange and administrative expenses and gain on sales of part of candor stakes in Koreans...If you want to get a full essay, order it on our website: Orderessay



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