Economy

Volkswagen Most Heavily Indebted Group in the World with Debts of $192 Billion US

Volkswagen Most Heavily Indebted Group in the World with Debts of $192 Billion US

  • With a debt burden of $192 billion, Volkswagen most indebted company in the world
  • Piles of debt almost equivalent to entire nations like South Africa or Hungary
  • Daimler and BMW also in top 10 with debts of $151 and $114 billion respectively
  • Despite debts: Volkswagen has second highest EBIT margin of all car manufacturers
  • Volkswagen also holds top place on innovations index

With a burden of $192 billion US, the Volkswagen Group is the most heavily indebted enterprise in the world. This can be seen in a new infographic from Kryptoszene.de. Their mountain of debt is comparable to that of entire nations such as South Africa or Hungary. All of this despite the fact that the Wolfsburg-based company is highly profitable and has the second-highest EBIT margin of any automotive group.

As the infographic illustrates, along with Volkswagen, two other German groups are among the ten companies with the highest debt burden – namely Daimler and BMW with debts of $151 and $114 billion US respectively. An analysis of the financial data from the 900 largest companies by market capitalization reveals that US companies carry the highest debt burden overall. Germany and companies based there are in second place.

Volkswagen does however also stand out in other respects. They are by far the most innovative automobile group, as is shown by an index ranking companies by innovations and world firsts in various areas of technology. In terms of profitability, Volkswagen also occupies a leading position in an industry comparison, with an EBIT margin last year of 7.3%. Only Toyota scored better with 8.4%.

“Volkswagen’s burden of debt is inflated partially by their car financing division,” according to Kryptoscene analyst Raphael Lulay. “Even though high debts can be problematic, depending on business development, the Wolfsburgers demonstrate that they invest the money in a forward-looking way. The company leads the way in innovation and has a higher research budget than tech giants like Microsoft and Apple as well as other car manufacturers”.

The full story with the infographic, facts and more statistics:

Volkswagen Most Heavily Indebted Group in the World with Debts of $192 Billion US

2 Comments

2 Comments

  1. Tina

    August 13, 2020 at 5:57 am

    Has it an concern for the famous brand name like VW? I think the size of debt alone isn’t the most accurate measure of indebtedness, accountants usually use D/E (debt to equity ratio, sometimes replaced with debt to capital) instead. You can find more big brand also have the huge debt : https://www.youtube.com/watch?v=BPUAFiRmGYg&t=8s

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