PORSCHE PROFIT $17K PER CAR
#16
Drifting
I'm not an accountant, but I think there is a difference between "operating profit" and "net profit". So when we look at what is "made" on each car are we dividing to the total operating profit or the total net profit over the number of cars?
So for fun, in trying to determine what Porsche puts in its pocket after the sale of a car, we might consider the definition quote below.
"Companies may choose to present their operating profit figures, in lieu of their net profit figures, as the net profit of a company contains the effects of interest payments and taxes. In cases where a company has a particularly high debt load, the operating profit may present the company’s financial situation more positively than their net profit reflects"
I think you are right that the amortization cost of building new factories would normally be included in "operating profit", there are some other significant expenses that are not taken into consideration such as the cost of debt as well as taxes.
I think the point of articles like this is that they show that Porsche is pretty profitable on a per unit basis, especially given that Porsche is not a small niche producer like Lamborghini.
All fun stuff, but it doesn't help me get a better deal on my new car.
So for fun, in trying to determine what Porsche puts in its pocket after the sale of a car, we might consider the definition quote below.
"Companies may choose to present their operating profit figures, in lieu of their net profit figures, as the net profit of a company contains the effects of interest payments and taxes. In cases where a company has a particularly high debt load, the operating profit may present the company’s financial situation more positively than their net profit reflects"
I think you are right that the amortization cost of building new factories would normally be included in "operating profit", there are some other significant expenses that are not taken into consideration such as the cost of debt as well as taxes.
I think the point of articles like this is that they show that Porsche is pretty profitable on a per unit basis, especially given that Porsche is not a small niche producer like Lamborghini.
All fun stuff, but it doesn't help me get a better deal on my new car.
#17
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Not at all. I interpreted your post as an exhortation that Porsche buyers should 'boycott' the marque because PAG's created a sellers market. That last seems to be true for the 911 and variants. No so much, perhaps, the trucks and the 718.
That I can get on board. There are probably some dealers in the sparsely populated areas that have allocations that they have to 'try' to fill. In the denser areas, allocations fill themselves.
I think there is quite a bit of market and price variance out there in Porscheland - affecting ordered cars.