Monday, May 23, 2011

Questions related to Current ratio, Quick ratio, Inventory turnover ratio, Fixed asset turnover ratio,


Questions:
Current Ratio
1.      How liquid Sony Corporation is?
2.      Is investing in short term investment risky for Sony Corporation in 2009?
3.      Is there any off balance sheet financing?
4.      Does off balance sheet item affect the financial performance of the Sony Corporation?
5.      Why cash and cash equivalent is decreasing in 2009?
Quick Ratio
6.      Is Sony Corporation utilizing its cash effectively?
7.      What is affecting company’s liquidity position?
8.      Why is account receivable decrease in year 2009?
9.      Why is the current liabilities decreased in 2009?
10.  Is Sony Corporation is able to pay off its liabilities?
Inventory Turnover Ratio
11.  Does Sony Corporation have effective inventory management?
12.  What could be the effect if Sony acquires more quantities of electronic devices than consumer’s need?
13.  Is Sony able to accurately predict consumer’s demand?
14.  Is Company holding reasonable amount of inventory?
15.   How Sony does the revenue sharing agreement with its distributors in order to keep the Inventory?

Fixed Asset Turnover Ratio
16.  Is Sony able to manage its fixed assets?
17.  Is Sony realizing excess proceeds on sale on electronic devices in 2009?
18.  Is Sony invested adequate amount of fixed assets in 2009?
19.  Is Net Sales revenue is increasing in 2009?
20.  What percentage of fixed assets is in the Balance-Sheet?
Total Asset Turnover
21.  Why assets total is decreasing in 2009?
22.  What are the major investing activities?
23.  Is investment done in Total Assets sufficient?
24.  What is other asset and why is it increasing?
25.  What is construction is progress and why it is increasing?
Debt to Equity Ratio
26.  How did Company’s debt change compared to previous year?
27.  Does Sony has strategic Debt?
28.  What factor is affecting Sony’s liabilities?
29.  Is the Stockholders’ Equity being more profitable?
Return on Assets
30.  Is Return on Assets satisfactory for Sony?
31.  Are they depreciating assets strategically?
32.  How Sony amortizes its Electronic devices? How many years of useful life raw electronic devices have?
33.  Does Sony own any real state?
34.  Is Sony’s ROA  higher than industry and market
Profit Margin Ratios
35.  What was the reason to decrease gross profit margin in 2009?
36.   What was the major component leaded Sony to decrease its revenues?
37.  How Fulfillment expenses affected in Sony’s profitability?
38.  Is Sony profitable company compared to industry?
Return on Equity
39.  Is stockholder’s equity being more profitable in 2009?
40.  Is Net Income in 2009 increasing or decreasing?
41.  Why stock holder’s equity is decreasing in 2009?
Price/Earning Ratio
42.  How EPS decreased in 2009 compared to 2008?
43.  What is Sony’s current Price/Earning ratio?
44.  What P/E ratio tells to the shareholders?
45.  Is the company is undervalued or overvalued?
46.  How is the company doing compared to its competitors?
Working Capital Turnover
47.  How Sony manage its working capital?
48.  What is Sony credit policy?
49.  Does Sony have sufficient working capital to reinvest in to the company itself?
50.  What cost flow assumption does Sony use for inventories?
51.  Why working capital is in negative in 2009?
Price to Cash Flow Ratio
52.  What was the major financing activity of Sony in 2009?
53.  What are reasons for the negative free cash flow of Sony in 2009?
54.  Where did the non cash adjustment come from in operating activity?
55.  What is the current stock price per share?
56.  What factor affects Sony’s stock price most?
Other ratios
57.  Does Sony have any litigation that would be a concern in the future?
58.  Are revenue sharing agreements beneficial for the company?
59.  How license agreements affect the commitment and contingencies?
60.  Are commitments of Sony threat for their future financial performance?


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