THE BUSINESS AND FINANCIAL PERFORMANCE OF

PANASONIC AND SONY

Than Aung
ACCA Reg: No. 1915848 FOR PERIOD OF 1 APR 2008 TO 31 MAR 2011
AGENDA

 Introduction, Aim and Objectives of Research

 Introduction Reasons for choosing the project topic
 Aim of Research Project
 Research Approach
 Information Gathering and Accounting/ Business techniques
 Information gathering
 Accounting and business techniques
 Research and Analysis
 Financial Performance Analysis
 Sales Growth Analysis
 Business Performance Analysis
 Conclusion and Recommendation
 Limitation
Introduction, Aim and Objectives of Research
Reasons for choosing the project topic

Topic → Number (8)

Organizations → Panasonic and Sony

Background → Briefing note for corporate history

Introduction, Aim and Objectives of Research
Aim and Objective of Research Project

To maximize the effectiveness of use the firm’s invested fund

To understand adequacy of operating cash flows

To know the current position and composition of a firm’s resources

To distinguish between creditor and owner state against those resources

To evaluate changes in wealth and assets in over time

To maintain effective controlling and monitoring the business operation

Finally, to provide the objective opinion for investment decision to existing

and potential investors
Introduction, Aim and Objectives of Research
Research Approach

Calculati
Processing
ng the
and
Gathering ratios Looking the
transferring
and and competitive
collected
collectin trends advantages
data into
g data. that we .
useful
need to
information.
analysis.

Demon
Classifying strating
Identifyin
data the
g the Conclusion
characteristic compar
factors.
s. able
results.
Information Gathering & Business techniques
Information gathering and sources of information

Annual report of Panasonic Library/ Academic

Student Account magazines
Corporation references and records

Letter from Chairman and

Financial review of each
President to Shareholders Financial News
company
and Stakeholders

Annual report of Sony Audit report of both

Other websites
Corporation companies
Information Gathering & Business techniques
Accounting and business techniques

Financial and Accounting Ratios Business Techniques

Profit ability Ratios Growth and Trend Analysis

Liquidity and Gearing Ratios PESTEL Analysis

Cash Flow and Investor Investment

Ratios SWOT Analysis
Research and Analysis
Financial Performance Analysis : Profitability Trend

Gross Proft Net Profit Gross Proft Net Profit

Panasonic Panasonic Sony Sony
Research and Analysis
Financial Performance Analysis : Asset Turnover

Asset Ultilization
2

1.8

1.6

1.4
Asset turnover ( Times)

1.2

1 (Panasonic)
0.8
(Sony)

0.6

0.4

0.2

0
2009 2010 2011
Research and Analysis
Financial Performance Analysis : Working Capital

Working Capital (billion of ¥)

(Sony) (Panasonic)

(282.9)
2011
642.8

72.9
2010
990.2

(190.3)
2009
1,194.3
Research and Analysis
Financial Performance Analysis : Assets Compositions

Panasonic 's Assets Compositon Sony's Assets Composition

Property Plant and Equi Intengible assets Property Plant and Equi Intengible assets
Other investment Currnet assets Other investment Currnet assets

9%

30%
 Research and Analysis
Financial Performance Analysis : Sample Tables for Ratios Calculation

Current Ratio Quick Ratio

Year 2009 2010 2011 Year 2009 2010 2011
Panasonic 1.60:1 1.35:1 1.23:1 Panasonic 1.21:1 1.03:1 0.91:1
Sony 0.95:1 1.02:1 0.93:1 Sony 0.74:1 0.86:1 0.76:1

Panasonic Panasonic

Year 2009 2010 2011 Year 2009 2010 2011

Inventory turnover 6.93 times 6.34 times 7.06 times Trade receivable day 36 days 58 days 44 days

Inventory day 50 days 62 days 51 days Trade payable day 44 days 73 days 57 days

Inventory conversion cycle 86 days 120 days 95 days Working capital cycle 42 days 47 days 38 days

Sony Sony
Year 2009 2010 2011 Year 2009 2010 2011
Inventory turnover 6.17 times 6.71 times 7.16 times Trade receivable day 40 days 45 days 38 days
Inventory day 52 days 48 days 53 days Trade payable day 36 days 61 days 60 days
Inventory conversion cycle 93 days 93 days 91 days Working capital cycle 57 days 32 days 31 days
Research and Analysis
Financial Performance Analysis : Debt (Long term) to Debt (Long term) plus Equity for 2009 – 2011

Panasonic
Sony
Research and Analysis
Financial Performance Analysis : Total Debt to Total Equity (2011)

Long term Long term

debt, debt,

Equity,64. Short term

Short term 9% debt, Equity,75.
debt, 1%
Research and Analysis
Financial Performance Analysis : Debt (Long term) to Equity for 2009 – 2011

Panasonic
Sony
Research and Analysis
Financial Performance Analysis : Changes in Owner’s Equity

Changes in Owner's Equity (Parent + NCI)

Panasonic Sony
Research and Analysis
Financial Performance Analysis : Changes in Owner’s Equity

Changes in Owner's Equity (Parent + NCI)

Panasonic Sony

14.54%

2.14%

2009 2010 2011

-10.62%
-14.04%

-19.93%
-24.53%
Research and Analysis
Sales Growth Analysis : Growth Rate Movement

Sale growth rate movement year by year (Anchoring)

Panasonic Sony

17%

2009 2010 2011 -0.5%

-4%
-7%

-13%
-14%
 (Billion of yen)

st quarter

nd quarter

rd quarter
Research and Analysis

th quarter

st quarter

nd quarter
Sales Growth Analysis : Seasonal Sales Trend

rd quarter

th quarter
Seasonal sales trend

st quarter

nd quarter

rd quarter

th quarter
Sony
Panasonic
Research and Analysis
Sales Growth Analysis : Geographical sales (International operation)

Panasonic (2009) Panasonic (2010) Panasonic (2011)

Other Other
Other
Asia- Areas Areas
Asia- Areas
Pacific 11% 12% Asia-
Pacific 14%
11% Pacific
11%
Domesti 12%
Domesti
c sales Domesti
c sales
(Japan) c sales
(Japan)
53% (Japan)
54%
Europe 52%
12% United Europe Europe
States 11% United 10% United
13% States States
12% 12%

Sony (2009) Sony (2011)

Domestic
Sony (2011)
Other Other Domesti
sales Other Domestic
Asia- Areas Asia- Areas c sales
(Japan) Areas sales
Pacific 10% Asia- Pacific 11% (Japan)
24% 11% (Japan)
16% Pacific 18% 30%
18% 30%

United
Europe States Europe
26% 24% Europe 21%
21%

United
United States
States 20%
20%
Research and Analysis
Business Performance Analysis

Business
Strategies

SWOT PESTEL
Analysis Analysis
Research and Analysis
Conclusion and Recommendation

Panasonic Current
has created technology is
sustainable feasible for
Good
business future goals
corporate Panasonic is
plans, achievi Capital and the
Own products image and a good
ng sales structures investor’s
Investment in and robust growing
changing and judgment for
growth, ROC NCA is also continuous commitment company for
new loan decision
E and NP well-built. of existing and
acquired are innovation. making is
increased Management potential
effective. also
EPS, dividen and its investors.
supported by
subordinates.
d cover are financial
also attractive reporting
for investors. information.
Research and Analysis
Limitations

Amount of time Constraints of

available data collection.

Reports of Some inherent

Chairman and limitations of
President Financial ratios
Thank you for attention