EVALUATING THE EFFECT OF FINANCIAL STABILITY ON PROFITABILITY PERFORMANCE AND PRODUCTIVITY GROWTH: THE CASE OF BMW
Keywords:
financial stability, profitability, productivity growth, liquidity, solvency, automotive industry, corporate performance, BMW.Abstract
Financial stability plays a critical role in determining the long-term success and competitiveness of modern corporations. In highly competitive industries such as automotive manufacturing, maintaining financial stability allows firms to improve profitability, enhance operational efficiency, and sustain productivity growth. This thesis investigates the relationship between financial stability, profitability performance, and productivity growth using BMW as a case study. The study analyzes the company’s financial indicators between 2019 and 2024, focusing on liquidity, solvency, profitability, and productivity metrics. The research applies ratio analysis and comparative financial evaluation methods to determine how financial stability influences corporate performance. The findings indicate that strong financial management, stable cash flow, and effective asset utilization significantly contribute to BMW’s profitability and productivity growth. The study concludes that financial stability is essential for maintaining sustainable development and competitive advantage in the automotive industry.
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