Companies' consolidated financial statements provide information about their financial situation - why the hidden truth is so important

Companies' consolidated financial statements provide information about their financial situation - why the hidden truth is so important

According to a report from www.abendzeitung-muenchen.de,

Corporate financial statements can provide valuable insight into a company's financial condition and business practices. Balance sheets are a source of truth, lies, hopes and disappointments, according to graduate economist Nikolaj Schmolcke. He analyzed the consolidated financial statements of Signa Holding GmbH and Signa Prime Selection AG, which are headed by René Benko. However, the publication of these companies' balance sheets is very late compared to usual standards, which raises questions.

Signa Prime Selection AG achieved a profit of 732 million euros on sales of 438 million euros in 2021, with the increased valuations of the properties also playing a significant role. René Benko increased the value of the real estate portfolio by one billion, which led to profits. Signa also took out loans totaling 120 million euros for Munich's Bahnhofsplatz. Prime Selection AG also has short-term liabilities of 2.7 billion euros, offset by current assets of 686 million euros. Despite this shortfall, the company paid out 225 million euros as a dividend. This shows that René Benko takes risks that the lenders accept.

The behavior of the Signa companies in relation to the publication of their balance sheets and their business practices raise questions about the financial stability and transparency of these companies. It remains to be seen how this will impact the real estate market and the industry as a whole.

It is important to closely examine the financial stability and business practices of real estate companies to protect investors from potential risks. The investigations and analyzes by experts like Nikolaj Schmolcke help to better understand the possible effects of such practices and to make more informed investment decisions.