3rd ICAI 2024

International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

Figure 1: ROIC, WACC and Growth

Source: authors’ calculations Figure 2 shows the difference between median ROIC and median WACC. The automotive industry fared best from 2016 to 2018, when return on capital outweighed cost of capital by more than 8 %. Here we can see that the 2008 crisis reverberated until 2012. On a positive note, however, every year except 2009 has seen capital earn more than its cost, so it is still a worthwhile business.

Figure 2: Difference between median ROIC (incl. R&D) and median WACC

Source: authors’caluclations

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