Financial reporting Research Paper Example | Topics and Well Written Essays - 3750 words

Financial reporting - Research Paper Example Both CarMax and AutoNation engage in the sale of used vehicles; however, they also trade new vehicles. This report sheds light on the US automotive industry which experienced sale of 15,600 vehicles in 2013. The report further assesses the past financial performance of CarMax and AutoNation. Among the financial aspects that would be analysed include, the revenue and working capital. Additionally, the report analyses the strategies that are used by both AutoNation and CarMax to maintain a competitive edge at the market. AutoNation is rated as the largest automotive firm that retail vehicles in the US (Morningstar 1). It is also considered the top company that offers both used and new vehicles to the market. With its foundation dating back to 1996, the company runs more than 260 dealerships in the United States (AutoNation 1). The company’s headquarters is based in Florida. According to AutoNation, the management of the company consists of the Chief Executive Officer, Mike Jackson and the COO (Chief Operation Officer), Maroone Mike. AutoNation experienced revenue of $17.517 billion as of 2013 (1). However, the total equity stood at $2.061 billion in the same year (AutoNation 1). On the other hand, Morningstar shows that CarMax is the largest company that engages in the selling of used cars (1). The company was founded in 1993 (CarMax 1). Currently, the company boasts of one-hundred and twenty-eight stores where the pre-owned vehicles are sold (CarMax 1). The headquarters of the company is located in Virginia, US. Under the leadership of the Chairperson, Mr. Tiefel William, the Chief Executive Officer, Folliard Thomas and the Chief Finance Officer, Mr. Reedy Tom, CarMax managed to record revenue of $12.547 billion as of February 2014 (CarMax 1). This report is set analyse the economic features of the US automotive industry. Additionally, the report would assess the strategies that are used by AutoNation and CarMax. The report would finally analyse the