American Axle & Manufacturing Holdings, Inc: Financial Analysis Report

Date of Award

Spring 5-13-2022

Document Type

Project (696 or 796 registration)

Degree Name

Master of Science in Accounting & Finance


Graduate Studies

Committee Chair

Mohamed Elbannan


American Axle & Manufacturing Holdings Inc is a manufacturer of automobile driveline and drivetrain components and systems, headquartered in Detroit, Michigan. Founded in 1994, American Axle & Manufacturing became an independent tier 1 automotive supplier, although its manufacturing facilities are rooted back to General Motors’ establishment in 1917. The business is a leading supplier with almost 80 facilities in 17 countries that provide next-generation driveline and metal forming products and technologies 24 hours a day to fulfill customer needs.

This paper will utilize historical financial data of American Axle & Manufacturing, along with an industry competitor to analyze financial performance. Highlights of the analysis include potential for strong sales growth, stable liquidity ratios, and a significant debt ratio/capital structure for the company. The stock market has negatively reacted to American Axle & Manufacturing’s deteriorating financial performance during the analyzed time period of 2016 – 2020, going from a stock price of $15.86 in January 2016 down to $8.34 in December 2020. The PE ratio has also reflected a negative outlook, going from roughly 3 in 2016 – 2017 to an output of almost -22 in 2018, with a recovery to approximately -4 in 2019 – 2020.

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