Description
FINANCIAL ANALYSIS OF ELECTRONICS COMPANY
Brown Goods
Peer Companies Comparison 30 September 2012
1
Table of Contents
GLOSSARY ..........................................................................................................................................................................3 QUARTERLY COMPARISON-JULY TO SEPTEMBER ................................................................................................................5 YEAR TO DATE COMPARISON-JANUARY TO SEPTEMBER.....................................................................................................6 YEAR TO DATE COMPARISON-APRIL TO SEPTEMBER ..........................................................................................................7 VESTEL ELEKTRONIK ...........................................................................................................................................................8 ARÇEL?K ..............................................................................................................................................................................9 SAMSUNG ELECTRONICS .................................................................................................................................................. 10 LG ELECTRONICS ............................................................................................................................................................... 11 TPV .................................................................................................................................................................................. 12 SHARP .............................................................................................................................................................................. 13 PANASONIC ...................................................................................................................................................................... 14 SONY ................................................................................................................................................................................ 15 TOSHIBA ........................................................................................................................................................................... 16 PIONEER ........................................................................................................................................................................... 17 SKYWORTH ...................................................................................................................................................................... 18
2
2
Glossary
•Net sales: The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed.
•Gross Profit Margin: The proportion of money left over from revenues after accounting for the cost of goods sold. More efficient companies will usually see higher profit margins.
•Ebitda Margin: A measurement of a company's operating profitability. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided by net sales. The higher the EBITDA margin, the less operating expenses eat into a company's bottom line, leading to a more profitable operation. •Ebit (Operating) Margin: A measurement of how much a company makes (before interest and taxes) on each dollar of sales. If a company's margin is increasing, it is earning more per dollar of sales. •Net Income Margin: An indication of how much out of every dollar of sales a company actually keeps in earnings. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. •Net Income: A company's total earnings (or profit). A measure of how profitable the company is over a period of time. •Market Capitalization: The total market value of all of a company's outstanding shares, calculated by multiplying a company's shares outstanding by the current market price of one share.
•Current Ratio: A company's ability to pay short-term obligations. The higher the current ratio, the more capable the company is of paying its obligations.
•Assets / Liabilities: A measure of a company's assets financed by debt and, therefore, a measure of its financial risk. The higher this ratio, generally the better off the company. •Net Cash From Operations / Net Sales: The company's ability to turn sales into cash. Greater amount of operating cash flow is better.
3
•Working Capital / Net Sales: An indication of how well the company is using its working capital which is calculated by deducting accounts payable from the total of accounts receivable and inventory. The lower the ratio the higher the perceived ability of the company to utilise its working capital in generating sales. 3
Glossary
•Net Debt / Assets: A measure of the extent to which a company's assets are financed by debt. The higher the ratio, the greater risk will be associated with the firm's operation.
•Asset Turnover: A measure of a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better.
•Return on Assets(ROA): An indicator of how profitable a company is relative to its total assets. The higher the ROA number, the better, because the company is earning more money on less investment. •Enterprise Value / Ebitda: It compares the value of a company, inclusive of debt and other liabilities, to the actual cash earnings exclusive of the non-cash expenses. Enterprise multiples can vary depending on the industry.
•Enterprise Value / Net Sales: An indication of how much it costs to buy the company's sales. Generally the lower the EV/sales the more attractive or undervalued the company is believed to be.
•Price / Earnings: The relationship between the stock price and the company’s earnings. The P/E gives you an idea of what the market is willing to pay for the company’s earnings. The higher the P/E the more the market is willing to pay for the company’s earnings. •Return on Equity(ROE): A measurement of a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The higher a company's return on equity compared to its industry, the better. •Cash Conversion Cycle(CCC): The length of time, in days, that it takes for a company to convert resource inputs into cash flows. The shorter the cycle, the less time capital is tied up in the business process, and thus the better for the company's bottom line.
•Days Sales Outstanding(DSO): A measure of the average number of days that a company takes to collect revenue after a sale has been made. A low DSO number means that it takes a company fewer days to collect its accounts receivable.
•Days Payable Outstanding(DPO): An indicator of how long a company is taking to pay its trade creditors. It is recommended to compare this ratio with those of the companies, working within the same industry. •Days Inventory Outstanding: An indicator of how many days on average a company turns its inventory into sales. In general, a lower DIO is better.
4
4
Quarterly Comparison - July to September
5
5
Year To Date Comparison - January to September
6
6
Year To Date Comparison - April to September*
* The fiscal year of these companies starts on 1 April, ends on 31 March
7
7
Vestel Elektronik
8
8
Arçelik
9
9
Samsung Electronics
10
10
LG Electronics
11
11
TPV
12
12
Sharp
13
13
Panasonic
14
14
Sony
15
15
Toshiba
16
16
Pioneer
17
17
Skyworth
18
18
doc_842047500.pdf
FINANCIAL ANALYSIS OF ELECTRONICS COMPANY
Brown Goods
Peer Companies Comparison 30 September 2012
1
Table of Contents
GLOSSARY ..........................................................................................................................................................................3 QUARTERLY COMPARISON-JULY TO SEPTEMBER ................................................................................................................5 YEAR TO DATE COMPARISON-JANUARY TO SEPTEMBER.....................................................................................................6 YEAR TO DATE COMPARISON-APRIL TO SEPTEMBER ..........................................................................................................7 VESTEL ELEKTRONIK ...........................................................................................................................................................8 ARÇEL?K ..............................................................................................................................................................................9 SAMSUNG ELECTRONICS .................................................................................................................................................. 10 LG ELECTRONICS ............................................................................................................................................................... 11 TPV .................................................................................................................................................................................. 12 SHARP .............................................................................................................................................................................. 13 PANASONIC ...................................................................................................................................................................... 14 SONY ................................................................................................................................................................................ 15 TOSHIBA ........................................................................................................................................................................... 16 PIONEER ........................................................................................................................................................................... 17 SKYWORTH ...................................................................................................................................................................... 18
2
2
Glossary
•Net sales: The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed.
•Gross Profit Margin: The proportion of money left over from revenues after accounting for the cost of goods sold. More efficient companies will usually see higher profit margins.
•Ebitda Margin: A measurement of a company's operating profitability. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided by net sales. The higher the EBITDA margin, the less operating expenses eat into a company's bottom line, leading to a more profitable operation. •Ebit (Operating) Margin: A measurement of how much a company makes (before interest and taxes) on each dollar of sales. If a company's margin is increasing, it is earning more per dollar of sales. •Net Income Margin: An indication of how much out of every dollar of sales a company actually keeps in earnings. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. •Net Income: A company's total earnings (or profit). A measure of how profitable the company is over a period of time. •Market Capitalization: The total market value of all of a company's outstanding shares, calculated by multiplying a company's shares outstanding by the current market price of one share.
•Current Ratio: A company's ability to pay short-term obligations. The higher the current ratio, the more capable the company is of paying its obligations.
•Assets / Liabilities: A measure of a company's assets financed by debt and, therefore, a measure of its financial risk. The higher this ratio, generally the better off the company. •Net Cash From Operations / Net Sales: The company's ability to turn sales into cash. Greater amount of operating cash flow is better.
3
•Working Capital / Net Sales: An indication of how well the company is using its working capital which is calculated by deducting accounts payable from the total of accounts receivable and inventory. The lower the ratio the higher the perceived ability of the company to utilise its working capital in generating sales. 3
Glossary
•Net Debt / Assets: A measure of the extent to which a company's assets are financed by debt. The higher the ratio, the greater risk will be associated with the firm's operation.
•Asset Turnover: A measure of a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better.
•Return on Assets(ROA): An indicator of how profitable a company is relative to its total assets. The higher the ROA number, the better, because the company is earning more money on less investment. •Enterprise Value / Ebitda: It compares the value of a company, inclusive of debt and other liabilities, to the actual cash earnings exclusive of the non-cash expenses. Enterprise multiples can vary depending on the industry.
•Enterprise Value / Net Sales: An indication of how much it costs to buy the company's sales. Generally the lower the EV/sales the more attractive or undervalued the company is believed to be.
•Price / Earnings: The relationship between the stock price and the company’s earnings. The P/E gives you an idea of what the market is willing to pay for the company’s earnings. The higher the P/E the more the market is willing to pay for the company’s earnings. •Return on Equity(ROE): A measurement of a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The higher a company's return on equity compared to its industry, the better. •Cash Conversion Cycle(CCC): The length of time, in days, that it takes for a company to convert resource inputs into cash flows. The shorter the cycle, the less time capital is tied up in the business process, and thus the better for the company's bottom line.
•Days Sales Outstanding(DSO): A measure of the average number of days that a company takes to collect revenue after a sale has been made. A low DSO number means that it takes a company fewer days to collect its accounts receivable.
•Days Payable Outstanding(DPO): An indicator of how long a company is taking to pay its trade creditors. It is recommended to compare this ratio with those of the companies, working within the same industry. •Days Inventory Outstanding: An indicator of how many days on average a company turns its inventory into sales. In general, a lower DIO is better.
4
4
Quarterly Comparison - July to September
5
5
Year To Date Comparison - January to September
6
6
Year To Date Comparison - April to September*
* The fiscal year of these companies starts on 1 April, ends on 31 March
7
7
Vestel Elektronik
8
8
Arçelik
9
9
Samsung Electronics
10
10
LG Electronics
11
11
TPV
12
12
Sharp
13
13
Panasonic
14
14
Sony
15
15
Toshiba
16
16
Pioneer
17
17
Skyworth
18
18
doc_842047500.pdf