Porsche - Financial Analysis

Paper Summary:

This paper provides a financial analysis of the automobile company, Porsche. The paper examines the company's profit and loss account, balance sheet and cash flow statement. The paper also compares Porsche's gross profit margin with its competitors and discusses its problems and opportunities. The paper concludes that in the last fiscal year Porsche has generated earnings above industry average. Several tables are included with the paper.

Tables of Contents:
Terms of Reference
Methods Used
Introduction
Findings
Ratio Analysis
Calculation and Discussion of the Financial Ratios
Comparison of the Ratios with the Industry Average
Problems and opportunities
Inventory and Asset Valuation Methods
Application of Accounting Concepts
Conclusion
Appendix

From the Paper:

"North America still remains the largest sales region for the past fiscal year and the most profitable. Domestic market was one of the weakest. Economy in the Eurozone has slowed down given a rise in oil prices and weak internal market demand as well as high unemployment. That has affected the auto industry as a whole and some manufacturers are still recovering from the drop in demand. However, Porsche models have been well received and highly in demand. This can be seen in from increase gross revenues year over year."
"On the new opportunities side Porsche should definitely look into expanding into markets such as China. Given China's strong economic growth, Porsche can greatly benefit from penetrating this market."

Sample of Sources Used:

• Business Vocational A Level. (2002), R. Lewis and R. Trevitt, S. Thornes Publishers Ltd, 2000, Third Edition Date viewed: 11th November 2006
• Financial Accounting (2006), A. Britton & C. Waterston, Pearson Education Ltd, Fourth Edition
• Gow, D. (2006) VW chief forced out as Porsche raises stakes. The Guardian, Nov 9, p26.
• Hoovers (2006) http://www.hoovers.com/ Available URL: http://www.hoovers.com/porsche/--ID__91295--/free-co-factsheet.xhtml Date viewed: 11th November 2006
• Porsche Annual Report, (2006) Porsche.com Available URL: http://www.porsche.com/uk/aboutporsche/investorrelations/annualreport/ Date Viewed: 8 Nov 2006

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