Business Description

Volvo AB is involved with the design, manufacture, and marketing of commercial vehicles. Erik Gustaf Larson and Assar-Thorvald Nathanael-Gabrielsson founded the company in 1927 and are headquartered in Goteborg, Sweden. It operates in the following areas: Buses and Volvo Pens, Trucks, Construction Equipment, Group Functions, Other, and Trucks. Industrial Operations and Financial Services.

Key Financials

Revenue (US$ Mn)

• Volvo AB’s annual revenue for 2021 was US$ 42,668 Mn, a 3.53% increase from the 2020
• The annual revenue generated by Volvo AB in 2020 was US$ 41,212 Mn
• At a 4.95% increase from , Volvo AB’s annual revenue of US$ 46,244 Mn was indexed in 2019
• Volvo AB generated total revenue of US$ 44,062 Mn in 2018

Operating Income (US$ Mn)

• US$ 4,702 Mn was the operating income generated by Volvo AB in 2021
• Volvo AB’s operating income for 2020 was US$ 3,151 Mn, a -36.89% decrease from 2019
• From 2018’s operating incomes, Volvo AB registered a 33.33% increase in 2019, amounting to US$ 4,992 Mn
• An operating income of US$ 3,744 Mn was generated in 2018 by Volvo AB

Net Income (US$ Mn)

• Volvo AB’s net income for 2021 was US$ 3,758 Mn, a 69.73% increase from the 2020
• The net income generated by Volvo AB in 2020 was US$ 2,214 Mn
• At a 36.77% increase from, Volvo AB’s net income of US$ 3,839 Mn was indexed in 2019
• Volvo AB generated a net income of US$ 2,807 Mn in 2018

Operating Margin %

• Volvo AB’s operating margin for 2021 was 12%, a 43.21% increase from 2020
• The operating margin generated by Volvo AB in 2020 was 8%
• At a 27.06% increase from, Volvo AB’s operating margin of 11% was indexed in 2019
• Volvo AB generated an operating margin of 9% in 2018

Gross Margin %

• Volvo AB’s gross margin for 2021 was 23%, a 3.56% increase from 2020
• The gross margin generated by Volvo AB in 2020 was 23%
• At an 8.48% increase from, Volvo AB’s gross margin of 24% was indexed in 2019
• Volvo AB generated a gross margin of 22% in 2018

SWOT Analysis

Strengths

Strong operational performance

Volvo demonstrated strong operational performance in the last review year. The company’s operating margin in FY2019 was 11.5%, as compared to 8.8% in FY2018. The net margin for FY2019 was 8.3%, as compared to 6.4% in FY2018. A company’s optimal pricing strategy and operational efficiency are the key factors behind its strong net operating margin. This demonstrates the company’s ability to create value for shareholders by creating positive operating cash and fulfilling obligations to creditors.

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