Ferrari

SUBMITTED BY: GROUP - 4

 Members
SL No Name ID

1 Md. Abu Sufian Howlader B-160203019

2 Sazzad Hossain B-160203072

3 Md. Aminul Islam Tipu B-160203097

4 Md. Jobydur Rahman B-140203029

 Background of Ferrari

Company : Ferrari
Industry : Automotive
Founder : Enzo Ferrari
Founded : 13 September 1939 in Modena, Italy

Our story officially begins in 1947
Our story officially begins in 1947
when the first car built under the
when the first car built under the
Ferrari marque, the 125 S, drove
Ferrari marque, the 125 S, drove
through the historic factory gates on
through the historic factory gates on
Via Acetone Inferior in Maranello.
Via Acetone Inferior in Maranello.
In late 1943, Ferrari moved Auto Avio
In late 1943, Ferrari moved Auto Avio
Costruzioni’s workshops from Modena to
Costruzioni’s workshops from Modena to
Maranello. At the end of the War, he set
Maranello. At the end of the War, he set
about designing and building what was to
about designing and building what was to
become the first Ferrari, the 125 S, a 1500cc
become the first Ferrari, the 125 S, a 1500cc
12-cylinder.
12-cylinder.
Origin
Born in Modena on February 18 1898, Enzo
Born in Modena on February 18 1898, Enzo
Ferrari passed away on August 14 1988, having
Ferrari passed away on August 14 1988, having
devoted his entire life to motor racing. In 1938,
devoted his entire life to motor racing. In 1938,
Ferrari was appointed head of Alfa Corse.
Ferrari was appointed head of Alfa Corse.
However, he left in 1939 to start up Auto Avio
However, he left in 1939 to start up Auto Avio
Costruzioni in the Scuderia’s old headquarters.
Costruzioni in the Scuderia’s old headquarters.
Franco Cortese drove the car in its maiden
Franco Cortese drove the car in its maiden
race at the Piacenza Circuit on May 11 1947
race at the Piacenza Circuit on May 11 1947
and again to its first victory in the Rome
and again to its first victory in the Rome
Grand Prix at the Terme di Caracalla circuit on
Grand Prix
th at the Terme di Caracalla circuit on
the 25  of the same month.
the 25th of the same month.
 Objective of The Company

These are not single for an organization, but multiple.

Objective should be both short-term as well long-term.
Objective must respond and react to change in environment, they must be fileable.
These must be feasible, realistic and operational.
 Goal

 These are precise and measurable.

 These look after critical and significant
issues.
 These are realistic and challenging.
 These must be achieved within a specific
time frame.
 These include both financial as well as non-
financial components.
 Mission
It must be feasible and attainable.
It should be clear enough so that any action can be taken.
It should be inspiring for the management.
It should be precise enough.
It should be unique and distinctive to live an impact in everyone’s mind.
It should be analytical.
It should be credible.
 Vision

It must be unambiguous.

It must be clear.
It must be harmonize with organization’s culture and values.
The dreams and aspirations must be rational.
Ratio Analysis
 Profitability Ratio

70%

60% 59%
57% 56%

50%

40%

30%

20%
15% 16%
14%
11% 11% 10%
10%

0%
2012 2013 2014

Gross Profit Margin Operating Profit Margin Net Profit Margin

 Effi ciency Rati os

Effective Tax Ratio Inventory Turnover Ratio A/P Turnover Ratio PP&E Turnover Ratio Net Fixed Asset Turnover Ratio Total Asset Turnover Ratio

469%

469%
404%

399%

399%
392%
392%

346%
326%
258%

234%
191%

71%
57%

50%

33%
33%
30%

2012 2013 2014

 Solvency Rati on
Times Interest Earned Ratio Cash Coverage Ratio

121.333

43.333
0.023
0.008
2012 2013 2014
-0.003

-336.000
 Liquidity Rati o
Current Ratio Quick Ratio Cash Ratio

208%

200%
186%

180%

128%

106%
76%
75%

16%
2012 2013 2014
 Leverage Rati o
Debt to Equity Ratio Debt to Tangible net worth Total Liability to Equity Total Asset to Equity Debt to EBITDA

334%
187%
168%

98%

87%

80%
76%

68%

55%

21%
14%

2012 2013 2014

-848%
-1128%

-1941%
-2041%
 Rate of Return
20%

10% 10%
6% 5% 7%

0%
2012 2013 2014

-20%

-40%

-60%

-80%

-100%

-120%

-132%
-140%

Return on Equity Return on Asset

 Du Pont Analysis
Tax Burden Interest Burden EBIT Margin Net Profit Margin( Operating Efficiency)
Asset Turnover (Asset Usage Efficiency) Equity Multiplyer ( Financial Leverage) Return On Equity

187%
168%

102%
101%
100%

71%
70%

67%

67%
57%

50%
16%
15%

14%
11%

11%
10%

10%

10%

-132%
-1941%
3

Peer
2
$61.99 DCF
EVA

- 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00
 Overvalued or Undervalued?

Current Price
$48-$52 Estimated EV
per share
$61.99

Undervalued
 W M Re
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$ ha
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8- $6
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