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1. 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

2. 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

3. 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

4. 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

5. 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.

6. 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

7. 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

8. Research and Analysis
Financial Performance Analysis : Profitability Trend
Gross Proft Net Profit Gross Proft Net Profit
Panasonic Panasonic Sony Sony

9. 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

10. 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

11. 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%

12. 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

13. Research and Analysis
Financial Performance Analysis : Debt (Long term) to Debt (Long term) plus Equity for 2009 – 2011
Panasonic
Sony

14. 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%

15. Research and Analysis
Financial Performance Analysis : Debt (Long term) to Equity for 2009 – 2011
Panasonic
Sony

16. Research and Analysis
Financial Performance Analysis : Changes in Owner’s Equity
Changes in Owner's Equity (Parent + NCI)
Panasonic Sony

17. 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%

18. 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%

19. (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

20. 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%

21. Research and Analysis
Business Performance Analysis
Business
Strategies
SWOT PESTEL
Analysis Analysis

22. 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.

23. Research and Analysis
Limitations
Amount of time Constraints of
available data collection.
Reports of Some inherent
Chairman and limitations of
President Financial ratios

24. Thank you for attention