Siemens Financial Summary

From the stock market, I chose the company Siemens. It is a German multinational conglomerate head quartered in Munich (Germany). It is the largest engineering company in Europe. Siemens’ principle divisions are industry, energy, healthcare and mobility.
Siemens and its subsidiaries employ around 340000 employees worldwide. In 2014, Siemens reported global revenue of around 71.9 billion Euros according to the annual report.
In this document, we analyze the 2014 financial report of Siemens and compare it to the 2013 one. A financial report or statement presents the current financial activities of the company and positions of the business and people.
After studying the document, I made the following observations: How was Siemens in 2014?

How to increase the working capital Siemens’ working capital is not too little as calculated above. However, there might be techniques to improve it by reducing its costs and increasing its revenue. Reducing the costs like Siemens’ started to restructure its organization by reducing the levels in the hierarchy and revisiting the spaces and employees. It can also focus on the divisions making more profits or find ways to improve the ones that are not working so well.

The accompanying notes for the annual report discuss the audit of the annual report and the fact that it was conducted in conformity with the law. The notes also discuss the fact that some other information could also be provided by managers or Siemens employees but they may be uncertain and imprecise, thus they do not reflect the real report on the company and that only this document has to be trusted.

The leverage ratio evaluates Siemens debt levels. The most common leverage ratios are the debt ratio and the debt-to-equity

Regarding the debt to equity ratio, it means that for every Euro owned by the shareholders, Siemens owes 1.16 Euro to creditors. The debt to equity ratio is close to 1 meaning that the level of debt is not very high. Regarding the foreign exchange rates, they explain the operating business of Siemens, its investment and financing activities that are affected by changes in foreign exchange rates (the foreign exchange translation was 5million Euros in 2014, 38 in 2013).
In order to optimize the allocation of the financial resources into Siemens segments and entities, as well as to secure an optimal return for its shareholders, Siemens identifies and manages the associated market risks. They use regular operating and financing activities, and uses derivative financial instruments when