The Effect of Foreign Exchange Rate Fluctuations on the Financial Performance of Multinational Corporations
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Date
2025-06-12
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Abstract
This diploma thesis examines the influence of changes in the EUR/USD exchange rate on the financial outcomes of multinational car manufacturers. It focuses on companies like Volkswagen, BMW, Mercedes-Benz Group, Stellantis, and Renault, using data collected between 2012 and 2023. The analysis studies how fluctuations in currency values relate to revenues, profits, return on assets, and return on equity. Through correlation analysis, the research identifies which companies are more vulnerable to exchange rate changes. The results show that firms with a greater dependence on international sales, especially those in the luxury segment, are more exposed to currency risks. The thesis also highlights the role of diversification and financial strategies in reducing these impacts.
This diploma thesis examines the influence of changes in the EUR/USD exchange rate on the financial outcomes of multinational car manufacturers. It focuses on companies like Volkswagen, BMW, Mercedes-Benz Group, Stellantis, and Renault, using data collected between 2012 and 2023. The analysis studies how fluctuations in currency values relate to revenues, profits, return on assets, and return on equity. Through correlation analysis, the research identifies which companies are more vulnerable to exchange rate changes. The results show that firms with a greater dependence on international sales, especially those in the luxury segment, are more exposed to currency risks. The thesis also highlights the role of diversification and financial strategies in reducing these impacts.
This diploma thesis examines the influence of changes in the EUR/USD exchange rate on the financial outcomes of multinational car manufacturers. It focuses on companies like Volkswagen, BMW, Mercedes-Benz Group, Stellantis, and Renault, using data collected between 2012 and 2023. The analysis studies how fluctuations in currency values relate to revenues, profits, return on assets, and return on equity. Through correlation analysis, the research identifies which companies are more vulnerable to exchange rate changes. The results show that firms with a greater dependence on international sales, especially those in the luxury segment, are more exposed to currency risks. The thesis also highlights the role of diversification and financial strategies in reducing these impacts.
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automotive sector, currency risk, exchange rate, financial analysis, multinational enterprises, profitability, revenue fluctuation