Swot Analysis Porsche Ag

1.0 Porsche AG in brief

Porsche AG emerged in history when Dr. Ferdinand Porsche established in 1931 the design firm Dr. Ing. h.c. F. Porsche KG, which rolled out the first design of the Volkswagen Beetle (Porsche AG history, 2015; Henderson & Reavis, 2009). The first Porsche branded vehicle came of the plant in 1948. Its products are renowned for their high performance and excellent handling capability. In 1964, it introduced the Model 911. However, Porsche AG suffered drastic drop in its 1991 sales and a three-year losing streak followed, forcing new CEO Wendelin Wiedeking to radically cut on costs. In 1996, the lower-priced Boxster rolled off and demand outpaced production and Porsche AG went back to profitability. For the outsourced car

Total debt also increased to €16.5 billion in 2014 from €15.6 billion in 2013. The decrease in current liabilities resulted from a significant decline in its financial liabilities to €1.9 billion from €2.9 billion (-36.0 percent), despite increases in trade payables (+24.98 percent), other liabilities (+13.6 percent), and income tax liabilities (+42.9 percent). Conversely, the increase in noncurrent liabilities resulted primarily from increases in provisions for pension and similar obligations (+52.9 percent) and other liabilities (+41.1 percent) despite the cut in deferred tax liabilities (-4.9 percent) and a decline in financial liabilities (-6.9 percent). Liquidity ratios indicate strictly controlled annual liquidity levels with strong reliance on leverage (around 30 percent of current assents) for its cash needs. Current ratio [current assets/current liabilities], the least conservative of the liquidity measures, is 0.7 both in 2014 and 2013 (Weiers, 2014). The most conservative ratio, the cash ratio [cash and cash equivalents/current liabilities], is 0.1825 percent in 2013 and 0.1835 percent in 2014.

The Porsche AG leverage ratios indicate low industry-relative debt levels annually. Debt to equity ratio [total liabilities/equity] for 2014 and 2013 is 1.7, which is below the

Superior fuel efficiency: One strength of Porsche AG is its superior energy efficient cars. For instance, its newly introduced record-breaking racer 918 Spyder consumes fuel much like a compact car (Porsche AG, 2014). It is capable of recapturing energy during breaking and acceleration. Endurance tested reliability: Porsche cars are renowned for its hardiness in the racetrack throughout the company’s history. Its latest hybrid model 919 Hybrid had survived and excelled endurance punishments in the 24-Hour Le Mans (first and second places with Audi in the third) (BBC, 2015) and in the 6 Hours of Sao Paulo for the FIA World Endurance Championship on 30 November 2014, which classified Porsche as the top manufacturer, leaving behind Audi and Toyota (Federation Internationale de l’Automobile,