1、财务管理案例解析英文版doc 29页正式版The case study ofSony corporationMembers of our group:童士卫 财务管理0201 012002019106唐 虎 财务管理0201 012002019105王小夏 财务管理0201 012002019126季春蕾 财务管理0202 012002019214张亚茹 财务管理0201 012002019131任课老师: 夏新平完成时间: 2005年1月28日一 .Background information of Sony1. Sony is founded on May 7, 1946 with the
2、 Headquarters Tokyo and Japan.2. Its corporate strategies are becoming a “knowledge-emergent enterprise in the broadband network era”.Evidenced by recent improvements in network infrastructure, the broadband environment has begun to expand at a rapid pace. In preparation for the arrival of the full-
3、scale broadband era, Sony is pursuing its vision of creating a Ubiquitous “Value” Network (UVN).3. Its development aspect expanded from the first magnetic tape recorder in1950, to the first QUALIA products in 2003, during these years with representative products in each decade: 60thfirst tape record
4、er and transistor 70th-video cassette player and headphone stereo Walkman 80th-CD player and camcorder 90th-high-density disc and DVD player In the 21th century- EL Display and optical disc二. The main operations of the corporation are: 三. The main structure of its sales income1. First is the Electro
5、nics:The Electronics segment consists of the following categories: Audio, Video, Televisions, Information and Communications, Semiconductors, Components and Other.The graph shows the information about this: The income is decreasing 2. Second is the Game:Game console and software business is conducte
6、d by Sony Computer Entertainment Inc.We can see the information from the graph: the income is also decreasing3. Third is the Music:Music business is conducted by Sony Music Entertainment Inc. (SMEI) and Sony Music Entertainment (Japan) Inc. (SMEJ).The graph is showing the basic information: The inco
7、me is decreasing4. Fourth is the Picture:Motion pictures, television and other businesses are conducted by Sony Pictures Entertainment Inc. (SPE).And also the basic information is from the Graph: The income is increasing5. Fifth is the financial service:The Financial Services segment includes Sony L
8、ife Insurance Co. Ltd. Sony Assurance Inc., Sony Bank Inc. and Sony Finance International. Inc.As graph of right show the operating information: The income is increasing6. Sixth is other operating:The Other segment includes an Internet-related business, So-net, which is conducted by Sony Communicati
9、on Network Corporation, an in-House information system services business, an IC card business and other businesses.With the information in the right graph: The income is increasingThe major Products of SonyAudio Home audio, portable audio, car audio, and car navigation systems Video Video cameras, d
10、igital still cameras, video decks, and DVD-Video players/recorders, and Digital-broadcasting receiving systemsTelevisions CRT-based televisions, projection televisions, PDP televisions, LCD televisions, projector for computers and display for computers Information and communications PC, printer syst
11、em, portable information PC, broadcast and professional use audio/video/monitors and other professional-use equipment Semiconductors LCD, CCD and other semiconductors Electronic components Optical pickups, batteries, audio/video/data recording media, and data recording systems 四.Sales and Operating
12、Revenue by Geographic Information1. The main market of course is the USA 2. It is expand the Europe and other country market ,while decrease the USA and Japan market ,While seems flat in total market .3. We can conclude Sony is facing a worldwide competition.4. It is changing its business from tradi
13、tional area to the new area, especially the entertainment market.5. It also need find new market, for example the Asian market, and bring new product with technology.This is the Segment Information of its sales income200220032004ElectronicsCustomers477255045433134758400Intersegment513631397137138995
14、Total528618149404504897395GameCustomers986529936274753732Intersegment171851875726488Total1003714955031780220MusicCustomers541418512908487457Intersegment586338459872431Total600051597506559888PicturesCustomers635841802770756370Intersegment000Total635841802770756370Financial ServicesCustomers4801905093
15、98565752Intersegment289322787827792Total509122537276593544OtherCustomers161730168970174680Intersegment99733137323155712Total261463306293330392Elimination-718114-665693-421418Consolidated total757825874736337496391 6. Developing trend AnalysisFactors which may affect Sonys financial performance inclu
16、de the following: market conditions, including general economic conditions, levels of consumer spending, foreign exchange fluctuations Sonys ability to continue to implement personnel reduction and other business reorganization activities Sonys ability to implement its network strategy, and implemen
17、t successful sales and distribution strategies in the light of the Internet and other technological developmentsSonys ability to devote sufficient resources to research and developmentSonys ability to prioritize capital expenditures, and the success Sonys joint ventures and alliances. Risks and unce
18、rtainties also include the impact of any future events with material unforeseen impacts.7.The basic financial ratios of Sony from year 2002 to 2004Financial ratios of each items of Sony corporation200420032002current ratio1.1278 1.2953 1.3044 Acid-test ratio0.9043 1.0384 1.0411 Debt to total Assets
19、ratio0.7359 0.7249 0.7076 Long term Debt to total Assets ratio0.4078 0.4340 0.3950 Interest guarantee leverage1.2850 1.5090 1.2024 Cash guarantee leverage1.3056 1.3828 1.4109 Receivable turnover6.1248 6.1867 5.1764 Inventory turnover7.5891 7.9578 7.7804 Current Assets Turnover2.0466 2.1926 2.1152 Fi
20、xed Assets Turnover5.0427 5.4101 5.0003 Total Assets Turnover0.7572 0.8262 0.8623 Gross Sales profit margin0.2652 0.2800 0.2577 Sales profit margin0.0209 0.0358 0.0131 Return on total Assets0.0158 0.0296 0.0113 Return on Equity0.0606 0.1086 0.0391 Assets Increment rate1.0426 0.9622 1.0237 Return on
21、Fixed Assets0.1055 0.1937 0.0657 Return on long term Assets0.0327 0.0648 0.0253 Net Sales profit margin0.0129 0.0167 0.0022 Net profit margin on total Assets0.0097 0.0138 0.0019 Net profit margin on Equity0.0372 0.0506 0.0065 From the above analysis and the table, we can see that:1 The liquidity rat
22、io and Acid-test ratio are in a year by year up-trend ,but combining receivable turnover and inventory turnover, the increase is mainly because of the increase of accounts receivable and the decrease of current liability.2 The company accounts receivable turnover and inventory turnover are in up-tre
23、nd ,this shows that Sony do well in accounts receivable and inventory, so its debt-repay ability and profit abilities will be in advantages.Its debt ratio is decreasing year by year, so we can see that Sony will have a low financial leverage, its financial environment will be good for its operating
24、Also, from analysis of the table, Sonys consolidated sales, operating income, income before taxes, and net income are expected to decrease compared with the fiscal year ended March 31, 2004. While we assume that the yen for the fiscal year ending March 31, 2005 will strengthen against the U.S. dolla
25、r and will weaken against the euroSonys investments are comprised of debt and equity securities accounted for under both the cost and equity method of accounting. If it has been determined that an investment has sustained an other-than-temporary decline in its value, the investment is written down t
26、o its fair value by a charge to earnings.五. Analysis of Sonys abilities1. The ability to meet the obligation200220032004Current ratio 1.30441.29531.1278 Quick ratio 1.04111.03840.9043Interest coverage ratio 1.20241.50901.2850Debt to total Assets ratio 0.70760.72490.7359For short-term obligations:. F
27、rom the current ratio, we see that the situation is not good for Sony corporation. Because the median current ratio for the industry is 2.1, but those of Sony is less than this obviously. But if we look at the quick ratio, we will find its very good: the industry median quick ratio is 1.1, and those
28、 of Sony are very near to it. This is because Sony has not as much inventories as other corporations.Then we can see that the ability of Sony to meet short-term obligations is good.For long-term obligations. The debt ratios are lager than 50%, which indicates that Sony borrows a large amount of mone
29、y. Its evidenced by the increasing amount of interest payment. . Its interest coverage ratios are obviously less than the median of that for the industry which is 4.0. Then we can see that Sonys ability to meet the long-term obligations is not good.2. Assets management analysis200220032004Receivable
30、 turnover 5.17646.18676.1248Inventory turnover7.78047.95787.5891Total assets turnover 0.86230.82620.7572First, the receivable turnovers are obviously less than the median of 8.1for the industry, which tells us that Sonys receivables are considerably slower in turning over than is typical for the industry.Second, the inventory turnovers are higher than the median of 3.3 for the industry, which shows Sony has a good inventory management. This is because that inventory is a small portion of assets Third, the to
