SAP

SAP SE is a German multinational software corporation that develops enterprise software to manage business operations and customer relations. The company is especially known for its ERP software

The analysis given in this report on SAP’s financial state, activity and efficiency is made from period 01.01.2016 to 31.12.2019., based on the financial statements data prepared according to International Financial Reporting Standards (IFRS).

The most important indicators of SAP’s financial state and activity results are summarized below by using a qualitative assessment for the period reviewed (31.12.15–31.12.19).

• the perfect value to debt ratio (0.47) that caused an optimal percentage of equity (53.3%) in the total capital of the company;
• the cash ratio is 0.37 on 31.12.2019 (a high cash at hand required for current payments);
• net worth (net assets) of the company is much higher (by 22.3 times) than the share capital on 31.12.2019;
• long-term resources of the financing of the company’s activity are enough to form a normal amount of working capital which would cover the available inventories.

• a good relationship between liquid assets (current assets minus inventories) and current liabilities (quick ratio is 1.05);
• earnings before interest and taxes (EBIT) showed USD 5,584 million for the year 2019, although it compares negatively with the previous value (USD +419 million);
• the income from financial and operational activities (comprehensive income) was USD 3,321 million during the period from 01.01.2019 to 31.12.2019.