Dusseldorf There is a risk of 352 billion euros slumbering in the balance sheets of the 40 Dax companies. The total corresponds to the goodwill from acquisitions for which there is no material equivalent. According to Handelsblatt calculations, the Dax companies have ten percent more goodwill on their balance sheets than a year earlier and a good twice as much as in 2005.
“Investors should take a close look at how much goodwill a company accumulates, whether it is increasing or whether it devalues this goodwill from time to time,” says Handelsblatt stock market expert Ulf Sommer in the new episode of Handelsblatt Today Extended.
Continental is a good example: The automotive supplier has written off some of its goodwill in recent years, which is logical in view of the change from combustion engines to electromobility in the automotive industry. “It is quite logical that takeovers from the age of combustion engine and catalytic converter technology, which were originally very valuable, no longer pay off and have to be written off,” says Sommer. “But unfortunately not everyone does it like Continental does.”
More: The 352 billion euro risk of the Dax companies
We have an exclusive subscription offer for you as a Handelsblatt Today listener: Test Handelsblatt Premium for four weeks for €1 and stay informed about what’s moving the financial markets. More information is available here.
If you have any comments, questions, criticism or praise for this episode, please email us at: [email protected]
We can now be reached on WhatsApp, Signal and Telegram via the following number: 01523 – 80 99 427