The Financial Analysis of the Hungarian Automotive Industry Based on Profitability and Capital Structure Ratios

The present study aims to investigate the economic processes taking place in the Hungarian automotive industry primarily by means of descriptive and multivariate statistical models. The purpose of the analysis is to present the performance of the sector via the ratios describing the operation. First...

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Bibliographic Details
Published in:Central European business review 2015-01, Vol.4 (1), p.61-73
Main Author: Szucs , Gabor
Format: Article
Language:English
Subjects:
Automobile industry
Automobile sales
Capital structure
Cluster analysis
Current liabilities
Economy
Financial analysis
Financial performance
Principal components analysis
Ratios
Studies
Time series
Variables
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Summary:The present study aims to investigate the economic processes taking place in the Hungarian automotive industry primarily by means of descriptive and multivariate statistical models. The purpose of the analysis is to present the performance of the sector via the ratios describing the operation. First the database and the applied methods – which are the factor and cluster analysis – will be described. Statement of the results begins with a descriptive statistical analysis of the financial ratios, where besides market share we get a whole picture of the operation of the determinative companies of the branch and the factors influencing the last six years. The capital structure ratios are examined in a separate chapter, where the changes of the last 10 years can be followed. The multivariate statistical models try to present a complex picture of the characteristics of the economic field and the underlying boundaries by means of the different ratios. On the basis of these findings, the study concludes that the automotive industry, which is named as a driving force of the economy, maintains its unbroken momentum predominantly due to the foreign-owned segment. Despite the given circumstances, the role of the liabilities is not of great importance.
ISSN:1805-4862
1805-4854
1805-4862
DOI:10.18267/j.cebr.111