空調業界

Financial results comparison FY2018 between DAIKIN & SHARP [Air condition industry]

BS: Balance Sheet

What is BS(Balance Sheet)?

Balance Sheet is a sheet which has

“ASSETS” on right side,

“Liabilities and shareholder’s equities” on left side.

The feature is that the left and right total values ​​are always the same.

BS between DAIKIN and SHARP

DAIKIN and SHARP have almost same assets.

But capital adequacy ratio is different.

From capital adequacy ratio, it could be said that DAIKIN is more stable company than SHARP.

PL: Profit and Loss Statement

What is PL(Profit and Loss Statement)?

PL is a summary of profit and loss of money for a certain period (3 months, 1 year, etc…).

5 profits to watch

1.Gross profit

“Gross profit” = “Sales” – “Cost of sales”

2.Operating income

“Operating income” = “Gross profit” – “Selling and general administrative expenses”

3.Ordinary profit

“Ordinary profit” = “Operating income” + “Non-operating profit and loss (stock shares, etc…)”

4.Pre-tax profit

“Pre-tax profit” = “Ordinary profit” – “Extraordinary profit and loss”

5.Net income

“Net income” = “Pre-tax profit” – “Corporate tax and etc…”

PL between DAIKIN and SHARP

 

ROA (Return on Assets)

What is ROA?

ROA is one of the most basic indicators of a company’s profit efficiency.

ROA represents how much profit the company made from its total assets.

In other words, it could be translated into the company’s yield.

An important job of managers is to raise ROA.

Formula

ROA[%]=Ordinary profit÷total assets×100

*calculated from BS and PL.

ROA between DAIKIN and SHARP

ROE (Return on Equity)

What is ROE?

ROE is one of the most basic indicators of a company’s profit efficiency.

ROE represents how much net income of company made from shareholder’s equities.

Formula

ROE[%] = Net income ÷ Shareholder’s equities ×100

*calculated from BS and PL.

ROE between DAIKIN and SHARP

Current ratio

What is Current ratio?

The current ratio is one of the indicators of short-term safety of company.

The larger the current ratio, the higher the short-term safety because it is difficult for the funds to short.

Formula

Current ratio(%)=Current Assets÷Current Liabilities×100

*calculated from BS.

Current ratio between DAIKIN and SHARP

Equity ratio

What is Equity ratio?

Equity ratio is one of the indicators of the long-term safety of a company.

The higher the equity ratio, the higher the long-term safety.

Formula

Equity ratio(%)=Shareholder’s equities ÷ total assets × 100

*calculated from BS.

Equity ratio between DAIKIN and SHARP

Sales to gross profit ratio

What is Sales to gross profit ratio?

Sales to gross profit ratio is one of the indicators of profitability.

The more Sales to gross profit ratio, it could be said the more efficient company management.

Formula

Sales to gross profit ratio(%)=Gloss profit ÷ Sales × 100

*calculated from PL.

Sales to operating income ratio

What is Sales to operating income ratio?

Sales to operating income ratio is one of the indicators of profitability.

The more sales to operating income ratio, it could be said the more efficient company management which suppresses selling and general administrative expenses.

Formula

Sales to operating income ratio(%)=Operating income ÷ Sales ×100

*calculated from PL.

Sales to ordinary profit ratio

What is Sales to ordinary profit ratio?

Sales to ordinary profit ratio is one of the indicators of profitability.

The higher the sales to ordinary profit ratio, the more profits other than the main business, and the better the management.

Formula

Sales to ordinary profit ratio(%)=Ordinary profit÷ Sales × 100

*calculated from PL.

Sales to various profit ration between DAIKIN and SHARP

Labor share

What is labor share?

Labor share is one of the indicators of productivity.

The lower the labor share, the more money is available for personnel expenses.

In other words, it can be said that the company is likely to raise the salary of employees.

Formula

Labor share(%)=Selling and general administrative expenses ÷Gross profit ×100

*calculated from PL.

Labor share between DAIKIN and SHARP

Gross profit per person

What is Gross profit per person?

Gross profit per person is one of the indicators of productivity.

The higher this value, the higher the added value of each employee.

Formula

Gross profit per person(yen)=Gross profit ÷ Number of employees

Gross profit per person between DAIKIN and SHARP

Data source:

・DAIKIN, Securities report submitted : Jun. 27 2019

LINK

・SHARP, Securities report submitted : Jun. 26 2019

LINK