Most of you have probably heard of the company “BMW” before, but do you know BMW’s net worth? First of all, a person’s or a company’s net worth is simply a way to measure how much money they own. So, what do you think BMW, one of the best car manufacturers in the world, is worth?
Its net worth is nearing $50 billion, though this value is subject to change anytime soon. The standard method for calculating the net worth of a person or a company is by subtracting the liabilities from the assets. If the assets are greater than the liabilities, the company is considered wealthy. And if it’s smaller, the company’s in debt.
What is BMW?
BMW has proven to be one of the world’s most prominent vehicle manufacturers. An engineer by the name of Karl Benz started the company in 1916. And at the time, he had invented the first automobile engine. In 1929, BMW became a public company and was listed on the stock exchange in 1931.
BMW started out making bicycles and tricycles, but it wasn’t until the 1920s that it began producing automobiles. At this time, the German government had passed laws requiring carmakers to give their vehicles safety standards. Since BMW met these requirements, they were given a license to produce cars in Germany.
After World War II, BMW continued to grow, and in 1949, it produced its millionth vehicle. By 2000, BMW had sold more than 10 million vehicles worldwide. Today, BMW sells about 1 million vehicles every year.
In addition to cars, BMW also makes motorcycles, lawnmowers, snowmobiles, and other products. Over 100,000 individuals are employed by BMW across the globe. And in 2016, the company boasted an overall revenue of about $55 billion.
BMW’s Net Worth
The company’s net worth is currently estimated at $48.3 billion. However, the net worth of BMW can frequently change because it depends on several factors, such as BMW’s profits, dividends, share price, and cash flow.
For example, BMW earned $2.9 billion in 2017 and paid out $1.4 billion in dividends. If we assume that BMW’s dividend rate will stay the same in 2018, then its net worth would decrease by $2.5 billion.
Another thing that affects the net worth of BMW is when BMW shares go up or down. When the stock price increases, its net worth goes up too. But when the stock price decreases, its net worth decreases.
BMW is a very successful company with lots of revenue and profit. This company is profitable enough to pay out dividends to shareholders. Therefore, purchasing stock in BMW may be to your advantage.
Note that its net worth is constantly fluctuating, so it’s difficult to say precisely when it will rise or fall. However, based on statistics, BMW’s net value estimate is somewhere between $45 billion and $50 billion. As long as the company continues to make good decisions, its net worth should continue to increase.
Interested in finding out the net worth of other businesses? Check out all of our net worth articles.