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KONE Corporation (KNEBV) - Financial and Strategic SWOT Analysis Review
Reference Code: GDIGM30764FSA
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KONE Corporation (KNEBV) - Financial and Strategic SWOT Analysis Review
Reference Code: GDIGM30764FSA Publication Date: JAN 2012
PO Box 7, Keilasatama 3 Phone +358 204 751 Revenue 4,987 (million EUR)
Espoo Fax +358 204 754496 Net Profit 535.30 (million EUR)
02150 Website www.kone.com Employees 34,386
Finland Exchange KNEBV [Helsinki Stock Exchange]
Industry Industrial Goods and Machinery
Company Overview KONE Corporation (KONE) is a Finnish elevator manufacturer company, which is engaged in elevators, escalators and solutions for their maintenance and modernization. It also provides maintenance of automatic building doors. Its main focus is to offer the best People Flow experience by developing and delivering solutions that enable people to move smoothly, safely, comfortably and without waiting in buildings in an increasingly urbanizing environment. Its clients include builders, building owners, facility managers, and developers.
Key Executives Name Title
Antti Herlin Chairman
Matti Alahuhta Chief Executive Officer
Sirkka Hamalainen-Lindfors Vice Chairman
Anne Brunila Director
Reino Hanhinen Director Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData
Share Data KONE Corporation
Share Price (EUR) as on 29-Dec-2011
39.81
EPS (EUR) 2.09
Market Cap (million EUR) 9,841
Enterprise Value (million EUR) 9,733
Shares Outstanding (million) 255 Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData
SWOT Analysis KONE Corporation, SWOT Analysis
Strengths Weaknesses
Diversified Business Operations
Backlog of Orders
Legal Proceedings
Decreased Efficiency Ratios
Opportunities Threats
Strategic Acquisitions
Increasing Global Infrastructure Expenditure
Infringement of Intellectual Property
Increasing Competition
Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData
Financial Performance
Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData
Recent Developments May 12, 2011 KONE Introduces TravelMaster 110 Escalator
In US And Canada Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData
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Table of Contents Table of Contents ............................................................................................................................................................................... 2
List of Tables .................................................................................................................................................................................. 4 List of Figures ................................................................................................................................................................................. 4
Section 1 - About the Company .......................................................................................................................................................... 5 KONE Corporation - Key Facts .......................................................................................................................................................... 5 KONE Corporation - Key Employees ................................................................................................................................................. 6 KONE Corporation - Key Employee Biographies ............................................................................................................................... 7 KONE Corporation - Major Products and Services ............................................................................................................................. 8 KONE Corporation - History ............................................................................................................................................................... 9 KONE Corporation - Company Statement ........................................................................................................................................ 11 KONE Corporation - Locations And Subsidiaries ............................................................................................................................. 12
Head Office ................................................................................................................................................................................... 12 Other Locations & Subsidiaries ..................................................................................................................................................... 12
Section 2 – Company Analysis ......................................................................................................................................................... 14 KONE Corporation - Business Description ....................................................................................................................................... 14 KONE Corporation - SWOT Analysis ............................................................................................................................................... 15
SWOT Analysis - Overview ........................................................................................................................................................... 15 KONE Corporation - Strengths ..................................................................................................................................................... 15
Strength - Diversified Business Operations ............................................................................................................................... 15 Strength - Backlog of Orders ..................................................................................................................................................... 15 Strength - Strong Liquidity ......................................................................................................................................................... 15
KONE Corporation - Weaknesses ................................................................................................................................................ 15 Weakness - Legal Proceedings ................................................................................................................................................. 15 Weakness - Decreased Efficiency Ratios .................................................................................................................................. 16
KONE Corporation - Opportunities ............................................................................................................................................... 16 Opportunity - Strategic Acquisitions .......................................................................................................................................... 16 Opportunity - Increasing Global Infrastructure Expenditure ....................................................................................................... 16 Opportunity - Expansion: Emerging Markets ............................................................................................................................. 16
KONE Corporation - Threats ......................................................................................................................................................... 16 Threat - Infringement of Intellectual Property ............................................................................................................................ 16 Threat - Increasing Competition ................................................................................................................................................ 16 Threat - Shift in Technology ...................................................................................................................................................... 17
KONE Corporation - Key Competitors .............................................................................................................................................. 18 Section 3 – Company Financial Ratios ............................................................................................................................................. 19 Financial Ratios - Capital Market Ratios........................................................................................................................................... 19 Financial Ratios - Annual Ratios ...................................................................................................................................................... 19 Performance Chart ........................................................................................................................................................................... 21 Financial Performance...................................................................................................................................................................... 21 Financial Ratios - Interim Ratios ....................................................................................................................................................... 22 Financial Ratios - Ratio Charts ......................................................................................................................................................... 23 KONE Corporation, Recent Deals Summary .................................................................................................................................... 24 Section 4 – Company’s Recent Developments ................................................................................................................................ 25
KONE Corporation, Recent Developments ................................................................................................................................... 25 May 12, 2011: KONE Introduces TravelMaster 110 Escalator In US And Canada ................................................................... 25
Section 5 – Appendix ....................................................................................................................................................................... 26
KONE Corporation (KNEBV) - Financial and Strategic SWOT Analysis Review
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Methodology ................................................................................................................................................................................. 26 Ratio Definitions ............................................................................................................................................................................ 26 About GlobalData ......................................................................................................................................................................... 30 Contact Us .................................................................................................................................................................................... 30 Disclaimer ..................................................................................................................................................................................... 30
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List of Tables
KONE Corporation, Key Facts ............................................................................................................................................................ 5 KONE Corporation, Key Employees ................................................................................................................................................... 6 KONE Corporation, Key Employee Biographies ................................................................................................................................. 7 KONE Corporation, Major Products and Services .............................................................................................................................. 8 KONE Corporation, History ................................................................................................................................................................ 9 KONE Corporation, Subsidiaries ...................................................................................................................................................... 12 KONE Corporation, Key Competitors ............................................................................................................................................... 18 KONE Corporation, Ratios based on current share price ................................................................................................................. 19 KONE Corporation, Annual Ratios ................................................................................................................................................... 19 KONE Corporation, Interim Ratios ................................................................................................................................................... 22 KONE Corporation, Recent Deals Summary .................................................................................................................................... 24 Currency Codes ............................................................................................................................................................................... 26 Capital Market Ratios ....................................................................................................................................................................... 26 Equity Ratios .................................................................................................................................................................................... 27 Profitability Ratios ............................................................................................................................................................................. 27 Cost Ratios ....................................................................................................................................................................................... 28 Liquidity Ratios ................................................................................................................................................................................. 28 Leverage Ratios ............................................................................................................................................................................... 29 Efficiency Ratios ............................................................................................................................................................................... 29
List of Figures
KONE Corporation, Performance Chart (2006 - 2010) ..................................................................................................................... 21 KONE Corporation, Ratio Charts ...................................................................................................................................................... 23
KONE Corporation (KNEBV) - Financial and Strategic SWOT Analysis Review
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Section 1 - About the Company
KONE Corporation - Key Facts KONE Corporation, Key Facts
Corporate Address PO Box 7, Keilasatama 3, Espoo, 02150, Finland
Ticker Symbol, Exchange KNEBV [Helsinki Stock Exchange]
Telephone +358 204 751 No. of Employees 34,386
Fax +358 204 754496 Fiscal Year End December
URL www.kone.com Revenue (in USD Million) 6,648.8
Industry Construction & Real Estate Revenue (in EUR Million) 4,986.6
Locations Finland
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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KONE Corporation - Key Employees
KONE Corporation, Key Employees
Name Job Title Board Level Since Age
Antti Herlin Chairman Executive Board 2003 55
Matti Alahuhta Chief Executive Officer, Director, President
Executive Board
2006 59
Sirkka Hamalainen-Lindfors Vice Chairman Non Executive Board 2004 72
Anne Brunila Director Non Executive Board 2009 57
Reino Hanhinen Director Non Executive Board 2005 68
Juhani Kaskeala Director Non Executive Board 2009 65
Shunichi Kimura Director Non Executive Board 2009 60
Sirpa Pietikainen Director Non Executive Board 2006 52
Jussi Herlin Director Non Executive Board 2007 27
Henrik Ehrnrooth Chief Financial Officer Senior Management 2009 42
Klaus Cawen Head of M&A and Strategic Alliances, Russia
Senior Management 2001 54
Pekka Kemppainen Head of Service Business Senior Management 2010 57
Anne Korkiakoski Head of Marketing and Communication
Senior Management 2008 47
Ari Lehtoranta Head of Central and North Europe
Senior Management 2010 48
Heikki Leppanen Head of New Equipment Business
Senior Management 2005 54
Juho Malmberg Head of Customer Experience Senior Management 2010 49
Eric Maziol Head of West and South Europe
Senior Management 2006 61
Vance Tang Head of Americas Senior Management 2007 44
Kerttu Tuomas Head of Human Resources Senior Management 2002 54
Noud Veeger Head of Asia Pacific Senior Management 2004 50
Pierre Liautaud Executive Vice President, West and South Europe, Middle-East and Africa region
Senior Management 2011 52
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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KONE Corporation - Key Employee Biographies
KONE Corporation, Key Employee Biographies
Antti Herlin Job Title: Chairman Board Level: Executive Board Since: 2003 Age: 55
Mr. Herlin is the Chairman of the company since, 2003. Prior to this, he served as Chief Executive Officer of the company. He is also the Chairman of the Board of Security Trading Oy and Holding Manutas Oy, Deputy Chairman of the Supervisory Board of Ilmarinen Mutual Pension Insurance Company, Member of the Board of Technology Industries of Finland, Member of the Board of YIT Corporation, Member of the Board of Sanoma Corporation and Member of the Board of Solidium Corporation.
Matti Alahuhta Job Title: Chief Executive Officer, Director, President Board Level: Executive Board Since: 2006 Age: 59
Mr. Alahuhta is the President, Chief Executive Officer and a Director of the company since, 2006. Prior to this, He served as the Executive Vice President at Nokia Corporation.
Henrik Ehrnrooth Job Title: Chief Financial Officer Board Level: Senior Management Since: 2009 Age: 42
Mr. Ehrnrooth is the Chief Finanial Officer of the company, since 2009. Prior to joining this company, he served at Goldman Sachs from 1998 to 2009. Before that, He served as the Managing Director in the investment banking division and at USB in various positions.
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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KONE Corporation - Major Products and Services The company is a Finnish elevator manufacturer, which is engaged in elevators, escalators and solutions for their maintenance and modernization. Its products and services are as follows:
KONE Corporation, Major Products and Services
Products:
Elevators
Escalators
Autowalks
Automatics Doors
Monitoring
Access Control Systems
Services:
Design Services
Construction Services
maintenance Services
Modernization Services
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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KONE Corporation - History
KONE Corporation, History
2010 Acquisitions/Mergers/Takeovers KONE Corporation completed the acquisition of ASBA Mantenimientos S.L.
2010 Acquisitions/Mergers/Takeovers The company has acquired ATPE-AMIB S.A., a French automatic door company. The Paris-based company provides and maintains gates, garage doors, access control and intercom installations in residential buildings. ATPE-AMIB has 2,800 doors in its maintenance base and employs 49 people.
2010 Acquisitions/Mergers/Takeovers The company has acquired Reliant Elevator Company, the largest independent elevator service company in the State of Oregon, the USA.
2010 Acquisitions/Mergers/Takeovers The company has acquired the Spanish MARVI Elevator group.
2010 Contracts/Agreements The company and and ProRail have signed a ten-year partnership contract for the installation of new KONE elevators and their maintenance. The contract defines KONE as one of two preferred suppliers for the installation of 175 new elevators. The maintenance period has been defined for 25 years.
2010 Corporate Changes/Expansions The company will relocate and expand its manufacturing unit and R&D center in China in the Kunshan New & Hi-tech Industrial Development Zone (KSND).
2009 Acquisitions/Mergers/Takeovers The company acquired Excel Elevator Inc, an independent elevator service company based in Los Angeles, the US.
2009 Acquisitions/Mergers/Takeovers The company has acquired ASBA Mantenimientos S.L., a Spanish elevator company.
2009 Acquisitions/Mergers/Takeovers The company has acquired FairWay Elevator Inc, one of the most successful independent elevator service companies in the Philadelphia area.
2009 Contracts/Agreements The company and GDF SUEZ Energy Services have signed a three-year elevator maintenance partnership contract. The contract defines KONE as one of the preferred suppliers of elevator maintenance for GDF SUEZ’s European facilities.
2008 Acquisitions/Mergers/Takeovers The company acquired TECAS S.A., a Spanish elevator company based in Valencia, Spain. TECAS maintains elevators, sells new equipment and is specialized in elevator installations for existing buildings.
2008 Acquisitions/Mergers/Takeovers The company acquired the International Elevator Company (IEC), a full service elevator company based in New Jersey, the US.
2008 Acquisitions/Mergers/Takeovers The company has acquired an elevator maintenance company called
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Florida Coast Elevator, Inc. based in Fort Lauderdale, the US The acquisition significantly increases KONE’s maintenance base in the areas of Fort Lauderdale, Miami and Dade County.
2008 Contracts/Agreements The company has received a major order from Bouygues to supply all 28 elevators and two escalators for the CB31 Tower in Paris’s La Défense district. The tower, originally built in 1974 and previously known as the AXA Tower, will be completely renewed.
2008 Contracts/Agreements The company has received a major order from Hines to supply all elevators for the 610 Lexington Avenue project.
2008 Contracts/Agreements The company has received an order to supply and install 26 elevators and 18 escalators, including the first double-deck elevator to be installed in Ireland from Crosbie Property for the prestigious Point Village project in Dublin, Ireland.
2008 Contracts/Agreements The company has recieved an order from Minerva plc. to supply all elevators for the company’s new Walbrook office building located in the heart of the City of London, England.
2008 Corporate Awards The company has been awarded a 2008 GOOD DESIGN award for its innovative KONE FourSeasons™ elevator design concept. It is the first elevator and escalator company to ever receive such a prestigious award
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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KONE Corporation - Company Statement The statement below has been taken from the company's website. Vision and strategy: KONE delivers solutions that enable people to move smoothly, safely, comfortably and without waiting from one place to another. Vision: KONE delivers the best People Flow experience. Strategy: KONE delivers a performance edge to its customers by creating the best user experience with innovative People Flow solutions. Simultaneously, KONE’s people leadership and processes enable operational excellence and cost competitiveness. Market outlook 2011: The new equipment markets in Asia-Pacific are expected to continue to develop positively, although with certain regional differences. The recovery of the new equipment markets in Central and North Europe is expected to continue in most countries, whereas most markets in South Europe are expected to be relatively stable at the current low level. The new equipment markets in the North America are expected to recover modestly. The modernization markets are expected to be at about last year’s level. The maintenance markets are expected to continue to develop well. Outlook 2011: KONE’s net sales is estimated to grow 0–5% at comparable exchange rates as compared to 2010. The operating income (EBIT) is expected to be in the range of EUR 700–750 million, assuming that translation exchange rates do not deviate materially from the situation of the beginning of 2011.
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KONE Corporation - Locations And Subsidiaries
Head Office
KONE Corporation PO Box 7 Keilasatama 3 Espoo 02150 Finland Tel: +358 204 751 Fax: +358 204 754496
Other Locations & Subsidiaries
KONE Corporation, Subsidiaries
KONE North American
One KONE Court
Moline
IL
61265
United States
Tel: +1 800 9565663
Fax: +1 309 7435469
KONE Inc. Spare Parts Centre 80 Horner Avenue, Toronto M8Z 4X8 Canada Tel: +1 416 2526151 Fax: +1 416 2525971
KONE Elevator India Pvt Ltd No.50, Vanagaram Road, Ayanambakkam, Chennai Tamil Nadu 600095 India Tel: +91 44 26533901 Fax: +91 44 26533912
KONE Japan Co., Ltd. 15F Cerulean Tower 26-1 Sakuragaoka-cho Shibuya-ku TKY 150 8512 Japan Tel: +81 3 54565191 Fax: +81 3 54565511
KONE Elevators Pty Ltd Euston Road, Alexandria NSW 2015 Australia Tel: +61 2 95777000 Fax: +61 2 95777100
KONE (Schweiz) AG Ruchstuckstrasse 21 Bruttisellen 8306 Switzerland Tel: +41 44 8383838 Fax: +41 44 8383888
KONE a.s. 16000 Prague 6 Luzna 716/2 Czech Republic Tel: +420 220 105444
KONE Zachód Sp. z o.o ul. Dabrowskiego 343 Poznan 60 419 Poland Tel: +48 61 8489002
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Fax: +420 220 105666
Fax: +48 61 8489000
KONE AS Kjelsåsveien 172 D Oslo N 0411 Norway Tel: +47 22 587000 Fax: +47 22 587001
KONE Lifts LLC Prorizna str. 18/1 G, apt 3 Kyiv Ukraine Tel: +380 44 2786555 Fax: +380 44 2798729
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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Section 2 – Company Analysis
KONE Corporation - Business Description KONE Corporation (KONE) is an elevator manufacturer company, which is engaged in the research, design, development and distribution of elevators, escalators and solutions for their maintenance and modernization. The company operates through two reportable segments namely, New Equipment and Services. In its new equipment segment, the company provides solutions for all types of buildings. It provides a wide range of innovative products including elevators, escalators, autowalks, automatic doors, monitoring and access control systems. Its solutions are catered to residential buildings, office buildings, public transportation and airports, hotels, retail centers, special buildings and medical facilities. In the fiscal year ended on 2010, the new equipment segment generated €2,304.5m, which accounted to 46.21% of the total revenue generated. In the Service segment, it offers services which supports each phase of a building’s lifecycle from designing to building maintenance and modernization. It provides design services which are engaged in easy-to-use tools and CAD drawings to help customers design the right solution for their needs. The award-winning KONE Design Collection gives customers the opportunity to select from a large collection of professionally designed elevator cars or create a customized elevator that suits any type of architecture. The construction service provides JumpLift enable fast, safe, and cost-efficient transportation of people and goods during the building project. The Maintenance service provides maintenance and monitoring solutions that maximize reliability and safety while minimizing downtime and costs and It modernization services is engaged in small upgrades to the full replacement of the elevators, escalators and doors to improve the equipment’s safety, accessibility, performance, aesthetic appeal and eco-efficiency. In the fiscal year ended 0n 2010, the service segment generated €2,682.1m, which accounted to 53.78% of the total revenue generated. The company has entered into a strategic alliance with Toshiba Elevators and Building System Corporation in 1998. Toshiba has the right to manufacture and market elevators based on KONE’s machine room-less technology in Japan. The company is a particularly into technology innovations. It is committed into offering high quality, innovative and energy efficient People Flow solutions that make travel within and between buildings as smooth as possible. Its research and development activities are principally into technologies in other industries and monitors changing markets, trends, customer needs, and working methods. It also includes the development of new product and service concepts and the further development of existing products and services. In the fiscal year ended on 2010, the company expended €71m, which accounted to 1.42% of the total revenue. It has its geographical operations in three reportable segments namely, EMEA, Americas and Asia-Pacific. In the fiscal year ended on 2010, the Europe, Middle East and Africa (EMEA) region accounted to 58.38% of the total revenue generated, followed by Asia-Pacific region (21.19%) and Americas region (20.42%). Recently, the company announced its involvement with World Design Capital Helsinki 2012, as one of the event’s main corporate sponsors. Also, the company is going to supply 25 heavy-duty escalators to Ghent’s main railway station renewal project in Belgium. The order includes 25 KONE TransitMaster 140 escalators and 13 scenic elevators that will be installed at Gent-Sint-Pieters station. The agreement also includes a 10-year maintenance contract. Further, the company won a contract to supply 26 elevators and 18 escalators to the new World Trade Center tower in Doha, Qatar. The order includes 18 KONE MiniSpace elevators with the KONE Polaris hybrid destination control system, which will optimize People Flow and ensure short wait times for the people moving around WTC Doha. The luxurious commercial tower will also include 2 KONE MonoSpace scenic elevators, 2 KONE MonoSpace elevators as well as 18 KONE TravelMaster 110 escalators. Moreover, the company entered into an agreement with Jaber Al Ahmad Al Jaber Al Sabah Hospital project in South Surra, Kuwait. To provide 93 elevators for this remarkable project. Furthermore, the company has acquired the elevator and escalator service business of CNIM Canada Inc. including all of their Canadian maintenance contracts. CNIM Canada maintains approximately 1,300 units in the Montreal, Toronto and Ottawa metropolitan areas. In addition, the company has entered into a major for cruise ships with the German shipyard Meyer Werft GmbH. The company will design, supply and install altogether 60 custom-designed elevators and four escalators tailored for passenger and service use. The technology is based on the energy-efficient KONE MonoSpace and KONE MiniSpace solutions.
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KONE Corporation - SWOT Analysis
SWOT Analysis - Overview
KONE Corporation (KONE) is an elevator manufacturer company. It is engaged in the maintenance and modernization of elevators, escalators and solutions. The company also offers maintenance of automatic building doors. It operates through two reportable business segments, namely, new equipment and services segment. The company’s operates across Europe, Middle-East, Africa, Asia-Pacific and Americas. Its global presence led the company to cater to broader markets and reduce the risks associated with adverse economic and political developments in any particular region. However, increasing competitive risks could be detrimental to its operations, if the company fails to evaluate them properly.
KONE Corporation - Strengths
Strength - Diversified Business Operations
The operational and geographical diversity makes the company less exposed to the risk of excessive dependence on any single segment, industry, or market. The company’s operates through two reportable business segments, namely, New Equipment and Services. During the fiscal year end 2010, the company generated 46.21% of its total revenue from New Equipment segment and 53.78% from its services segment. Through its new equipment segment, the company offers solutions for all types of buildings. It offers innovative products such as elevators, escalators, autowalks, automatic doors, monitoring and access control systems. Its services segment supports each phase of a building’s lifecycle from designing to building maintenance and modernization. Geographically, the company operates through three segments which include Europe, Middle East and Africa (EMEA), Americas and Asia-Pacific. For the fiscal year ended 2010, EMEA segment accounted for 58.38% of the company’s total revenue, followed by Asia-Pacific region (21.19%) and Americas region (20.42%). Diversified business operations provide the company an advantage over its competitors, besides serving the diverse needs of its customer base.
Strength - Backlog of Orders
The company could benefit from its strong order backlog that provides a future source of revenue. The company’s orders received in 2010 increased 11% over that in 2009. The orders received totaled €3,809m in 2010. The company was successful in many important markets as the overall market situation was demanding in new equipment throughout the year. The development in orders by the company was strongest in Asia-Pacific region, with China and Southeast Asia developing positively during 2010. However, the company’s modernization orders attained declined slightly due to the weakness of the French market. Where as in Americas, Asia-Pacific and northern and central parts of Europe, modernization orders grew moderately. The company’s backlog includes firm commitments obtained from customers for systems, products and projects that have yet to be completed. New as well as repeat orders will improve the brand image and enhances the revenue of the company.
Strength - Strong Liquidity
The increasing liquidity of the company supports its expansion and also provides business stability to the company. The company reported increased current ratio of 1.35 times in the fiscal year ended 2010, as compared to 1.23 times in 2009. The increasing current ratio indicates that the company is in a strong financial position and is more capable of meeting its short-term obligations than in the previous year. Its quick ratio and cash ratio also increased 1.45 times and 0.6 in 2010 respectively from 1.27 and 0.46 in 2009. The increasing liquidity provides the company with adequate capital to expand its operations.
KONE Corporation - Weaknesses
Weakness - Legal Proceedings
Involvement in litigation adds to costs, which could have an adverse impact on the operations and financial position of the company. The company and its affiliates have been involved various cases as defendant or plaintiff. In June 2009, the company filed a patent infringement lawsuit against Thyssenkrupp Elevator Corporation and Thyssenkrupp Elevator Americas Corporation. The company is one of the defendants among others in an elevator antitrust litigation filed in the US Court of Appeals. Legal proceedings and law suits such as these increase legal expenses for the company and can diminish shareholders’ faith in the company. Such proceedings against the company, irrespective of their outcome, divert the attention of the management to unproductive issues and besides putting unnecessary burden on the finances of the company.
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Weakness - Decreased Efficiency Ratios
The company reported a decrease in its efficiency ratios. The efficiency ratios are used to analyze the uses of assets and liabilities by the company internally. The company reported and asset turnover ratio of 1.53 times in the fiscal year ended 2010 as against 1.66 times in the previous year, followed by current asset turnover 2.73 times (2.9 times), and capital employed turnover of 3.11 times as against 3.54 times in the previous year. The company also reported a slight fall in working capital turnover ratio. Such decreasing efficiency ratios indicate that the company is unable to make effective use of its assets and liabilities towards maximizing its bottom line and shareholders wealth.
KONE Corporation - Opportunities
Opportunity - Strategic Acquisitions
The company continues to view acquisitions as a key part of its growth strategy. During 2010, KONE acquired two companies in Spain, namely, ASBA Mantenimientos S.L. and Marvi Elevator group; ATPE-AMIB S.A. in France; two companies in the US namely, Reliant Elevator Company and Virginia Elevator Company. ASBA is an elevator company in Barcelona. Through this acquisition, the company strengthened its maintenance and modernization operations in the Catalonia region. Marvi Elevator group installs, maintains and modernizes elevators in the eastern regions of Spain. It also has an assembly and logistics center in Catalonia and is one of the leading companies in the industry. ATPE-AMIB an automatic door company in Paris offers and maintains gates, garage doors, access control and intercom installations in residential buildings. The acquisition of Reliant Elevator Company, the independent elevator service company in Oregon strengthened the company’s position as one of the leading elevator and escalator companies in the Portland metropolitan area and across Oregon. Virginia Elevator Company is a long established and successful independent elevator service company operating in the greater Richmond area. Through this acquisition the company established itself as one of the largest elevator and escalator companies in Virginia. The acquisitions completed 2010 exerted a material impact on the result and financial position of the company. The company’s strategy of acquiring companies will further enhance its diversification.
Opportunity - Increasing Global Infrastructure Expenditure
The company could take advantage of increasing infrastructural developments worldwide. According to Canadian Imperial Bank of Commerce (CIBC), global infrastructure spending is expected to reach $35 trillions in next twenty years. Of which, North America is expected to spend $180 billion on infrastructure each year, followed by Europe with $205 billion, Asia with $400 billion and Africa with $10 billion annually. The company could leverage its capabilities in strengthening its international presence by both organic and inorganic strategies to cater to the estimated requirements.
Opportunity - Expansion: Emerging Markets
The company could take advantage of growth in the construction sector in Southeast Asia, Middle East, Latin America, Central and Eastern Europe. During 2010, China, India, Latin America, and the Gulf region exhibited strong growth rates in the construction sector. These are the emerging markets in terms of construction activity. Construction of buildings could provide opportunities in terms of purchase of elevators, and related technologies and services. The company could also take advantage of the stimulus programs offered in many developing nations, especially China and India. In China, it could strengthen the Elevator Technology and Materials Services activities in the coming years.
KONE Corporation - Threats
Threat - Infringement of Intellectual Property
The company’s intellectual property rights could be challenged, invalidated, or infringed by its competitors. The company has to vigorously protect its intellectual property, especially for its technology incorporated in its products, including advanced insulation systems. The company’s intellectual property includes copyrights, patents, trademarks, industrial design rights and various trade secrets. The company may not have registered, or may fail to register these trademarks in other countries. The company relies substantially on various trade secret laws and contractual restrictions to protect its proprietary rights. Failure to meet the requirements in securing its technology could adversely hamper the company’s competitive position. Similarly, the company may face infringement claims and incur additional costs that would affect its profitability.
Threat - Increasing Competition
Since commercial and residential real estate markets are currently uninviting, the concentration is growing upon the infrastructural projects in most of the countries. As part of recovery policies several stimulus packages were brought out by the government
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bodies to restore the economic growth or stabilize the economic downturn. Major importance is given to infrastructure development projects which include civil engineering, transportation, power and water utilities, and energy projects. These projects are granted largely through tendering process. To acquire these projects, the companies have to quote least price by maintaining minimum margins. Reduced margins accompanied with increasing costs will decrease the liquidity and also could lead to uncertainty in long term sustenance of KONE.
Threat - Shift in Technology
The company operates in a rapidly changing technological environment, and to compete successfully, it should continually develop, manufacture and market innovative products that achieve market acceptance. Hence, in order to meet its customer’s demands, the company must continuously design new, and update existing products and invest and develop new technologies. The launch of new products and technologies by the company involves a significant commitment towards its research and development. Upon investing in these new technologies, the company’s sales and profits may suffer if they are not accepted in the marketplace as anticipated. NOTE: * Sector average represents top companies within the specified sector The above strategic analysis is based on in-house research and reflects the publishers opinion only
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KONE Corporation - Key Competitors
KONE Corporation, Key Competitors
Name Headquarters Revenue (US$ m)
Hyundai Elevator Co., Ltd. Republic of Korea 677
Otis Elevator Company United States
Schindler Elevator Corporation United States
Siam-Hitachi Elevator Co., Ltd. Thailand
ThyssenKrupp Elevator United States 4,712 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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Section 3 – Company Financial Ratios
Financial Ratios - Capital Market Ratios KONE Corporation, Ratios based on current share price
Key Ratios 29-Dec-2011
P/E (Price/Earnings) Ratio 18.49
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 12.51
Enterprise Value/Sales 1.95
Enterprise Value/Operating Profit 13.98
Enterprise Value/Total Assets 3
Dividend Yield 0.02 Note: Above ratios are based on share price as of 29-Dec-2011, the above ratios are absolute numbers
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
Financial Ratios - Annual Ratios
KONE Corporation, Annual Ratios
Key Ratios Unit/Currency 2006 2007 2008 2009 2010
Equity Ratios
EPS (Earnings per Share) EUR 0.92 0.71 1.65 1.83 2.09
Dividend per Share EUR 0.50 0.65 0.65 1.30 0.90
Dividend Cover Absolute 1.85 1.09 2.53 1.41 2.32
Book Value per Share EUR 2.99 3.22 4.10 5.28 6.25
Cash Value per Share EUR 0.47 0.67 0.59 0.81 0.75
Profitability Ratios
Gross Margin % 67.13 61.30 58.96 54.93 56.14
Operating Margin % 10 7.86 12.13 11.95 13.97
Net Profit Margin % 6.52 4.42 9.07 9.82 10.73
Profit Markup % 204.20 158.42 143.64 121.85
PBT Margin (Profit Before Tax) % 9.90 7.70 12.25 12.53 14.33
Return on Equity % 33.78 24.05 40.32 34.79 33.47
Return on Capital Employed % 34.43 27.43 39.50 37.02 36.60
Return on Assets % 10.24 7.63 15.71 16.33 16.50
Return on Fixed Assets % 32.67 29.62 47.39 46.54 48.93
Return on Working Capital % 371.30 237.31 180.94 145.23
Growth Ratios
Sales Growth % 71.35 13.28 12.84 3.06 5.12
Operating Income Growth % 84.95 -10.91 74.06 1.49 22.89
EBITDA Growth % 81.60 -10.20 68.84 4.49 18.44
Net Income Growth % 88.14 -23.30 131.70 11.57 14.97
EPS Growth % 76.15 -21.16 124.01 18.05 7.77
Working Capital Growth % 426.17 -253.46 172.34 33.11 53.10
Cost Ratios
Operating Costs (% of Sales) % 90 92.14 87.87 88.05 86.03
Administration Costs (% of Sales) % 38.20 35.26 33.41 33.11 32.84
Liquidity Ratios
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Current Ratio Absolute 0.95 1.07 1.19 1.24 1.36
Quick Ratio Absolute 0.42 0.42 0.48 0.64 0.79
Cash Ratio Absolute 0.18 0.23 0.27 0.47 0.60
Leverage Ratios
Debt to Equity Ratio % 21.41 49.03 28.58 9.19 4.34
Net Debt to Equity % 5.65 28.35 14.30 -6.12 -7.70
Debt to Capital Ratio % 14.23 31.40 20.92 8.04 3.65
Efficiency Ratios
Asset Turnover Absolute 1.57 1.73 1.73 1.66 1.54
Fixed Asset Turnover Absolute 16.73 20.37 21.49 23.71 24.34
Inventory Turnover Absolute 1.77 2.04 2.13 2.73 2.86
Current Asset Turnover Absolute 3.03 3.19 3.11 2.90 2.74
Capital Employed Turnover Absolute 5.18 5.45 4.45 3.54 3.12
Working Capital Turnover Absolute 47.21 19.56 15.15 10.40
Revenue per Employee EUR 145,018
Net Income per Employee EUR 15,567
Capex to Sales % 1.73 1.62 1.64 0.93 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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Performance Chart
KONE Corporation, Performance Chart (2006 - 2010)
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
Financial Performance The company reported revenues of (Euro) EUR 4,986.60 million during the fiscal year ended December 2010, an increase of 5.12% over 2009. The operating profit of the company was EUR 696.40 million during the fiscal year 2010, an increase of 22.89% over 2009. The net profit of the company was EUR 535.30 million during the fiscal year 2010, an increase of 14.97% over 2009.
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Financial Ratios - Interim Ratios
KONE Corporation, Interim Ratios
Key Ratios Unit/Currency Sep-2010 Dec-2010 Mar-2011 Jun-2011 Sep-2011
Interim EPS (Earnings per Share) EUR 0.56 0.67 0.38 0.56 0.60
Dividend per Share EUR 0.90
Book Value per Share EUR 5.51 6.25 5.61 6.16 6.84
Gross Margin % 16.23 16.35 12.78 15.56 15.80
Operating Margin % 14.95 15.27 11.26 14.34 14.57
Net Profit Margin % 11.72 11.68 9.38 11.08 12.04
Profit Markup % 19.38 19.54 14.66 18.43 18.76
PBT Margin (Profit Before Tax) % 15.57 15.56 11.51 14.82 15.83
Operating Costs (% of Sales) % 85.05 84.73 88.74 85.66 85.43
Current Ratio Absolute 1.22 1.36 1.24 1.33 1.38
Quick Ratio Absolute 0.59 0.79 0.69 0.76 0.77
Debt to Equity Ratio % 5.75 4.34 4.74 4.24 2.14
Net Debt to Equity % -9.04 -7.70 -9.02 -8.89 -6.32
Debt to Capital Ratio % 4.77 3.65 3.93 3.62 1.84 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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Financial Ratios - Ratio Charts
KONE Corporation, Ratio Charts
EPS Operating Margin
Return on Equity Return on Assets
Debt to Equity Ratio Current Ratio
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData
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KONE Corporation, Recent Deals Summary
KONE Corporation, Recent Deals Summary
Deal Date Deal Status Deal Type Acquirer (s) / Investor (s)
/Surviving Entity
Target / Issuer / Partner (s)
Vendor Deal Value (US $ million)
08-Feb-2010 Completed Divestiture - Company
KONE Corporation ASBA Mantenimientos S.L.
02-Nov-2009 Completed Divestiture - Company
KONE Corporation Northeast Elevator Services Corporation
12-Jan-2007 Announced Divestiture - Company
KONE Corporation Miro Elevators Limited
03-Nov-2006 Announced Partnership KONE Corporation, Marimekko Corporation
Note: Deals include recent 10 deals in the past 24 months. Above data is extracted from GlobalData’s Deals and Alliances Profile.
GlobalData
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Section 4 – Company’s Recent Developments
KONE Corporation, Recent Developments May 12, 2011: KONE Introduces TravelMaster 110 Escalator In US And Canada
KONE Corporation has introduced in the US and Canada, the KONE TravelMaster 110, a green and energy-efficient escalator platform targeted primarily toward the retail segment, including supermarkets, hypermarkets, department stores and shopping centers. The KONE TravelMaster 110 continues KONE's drive to meet customer demands for new and energy-efficient solutions, the company said. Energy-saving options from the escalator will provide an estimated 13% savings on annual energy costs, reducing the escalator's total energy use over its lifecycle by up to 93,000kWh. The energy savings options will reduce total lifecycle carbon emissions of the product by up to 114,000 pounds CO2. Vance Tang, executive vice president and area director for Americas at KONE, said, "With this product launch, KONE maintains our position as an industry leader in sustainability. We are committed to bringing safe and environmentally sound solutions to the market. The KONE TravelMaster 110 introduces proven technology that meets these demands, while at the same time, offering more features our customers want, such as LED lighting and more aesthetic options." Energy saving features: • Optional regenerative drive– Saving an estimated 7,100kWh/year and reducing the escalator's carbon footprint by 7,496 pounds CO2 per year. • Standby speed operation- Provides an energy savings of up to 40%, depending on passenger traffic, load, motor and drive. The solution also reduces the escalator's carbon footprint by 2,734 pounds CO2 per year. Brent Andrews, product manager for escalator at KONE, said, "The KONE TravelMaster 110 offers multiple choices for customers wishing to reduce energy consumption, including the return of energy directly to the building, while providing a safe and smooth ride for passengers. We even offer multiple LED lighting options that allow energy savings of up to 80% compared to conventional lighting. Additionally, the product is cost effective and includes an expanded aesthetic offering for our customers."
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Section 5 – Appendix The data and analysis within this report is driven by GlobalData. GlobalData gives you key information to drive sales, investment and deal making activity in your business. Our coverage includes 165,000 + reports on 150,000+ companies (including 100,000+ private) across 200+ countries and 29 industries. The key industries include Alternative Energy, Oil & Gas, Clean Technology, Technology and Telecommunication, Pharmaceutical and Healthcare, Power, Financial Services, Chemical and Metal & Mining.
Methodology
GlobalData company reports are based on a core set of research techniques which ensure the best possible level of quality and accuracy of data. The key sources used include: • Company Websites • Company Annual Reports • SEC Filings • Press Releases • Proprietary Databases Currency Codes
Currency Code Currency
EUR Euro GlobalData
Ratio Definitions
Capital Market Ratios
Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.
Price/Earnings Ratio (P/E)
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Price per share is as of previous business close, and EPS is from latest annual report. Calculation: Price per Share / Earnings per Share
Enterprise Value/Earnings before Interest, Tax, Depreciation & Amortization (EV/EBITDA)
Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a company's capital structure. It compares the value of a business, free of debt, to earnings before interest. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income + Interest + Tax + Depreciation + Amortization)
Enterprise Value/Sales
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into account the amount of debt a company has, which needs to be paid back at some point. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Value/Operating Profit
Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating
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Income Enterprise Value/Total Assets
Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets
Dividend Yield
Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Calculation: Annual Dividend per Share / Price per Share
GlobalData
Equity Ratios
These ratios are based on per share value.
Earnings per Share (EPS)
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability. Calculation: Net Income / Weighted Average Shares
Dividend per Share
Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Dividend Cover
Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders. Calculation: Earnings per share / Dividend per share
Book Value per Share
Book Value per Share measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is determined by dividing cash & equivalents by the total shares outstanding. Calculation: Cash & equivalents / Outstanding Shares
GlobalData
Profitability Ratios
Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.
Gross Margin
Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and direct-variable unit costs. Calculation: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin
Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency. Calculation: (Operating Income / Revenues) *100
Net Profit Margin
Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows how much of each dollar earned by the company is translated into profits. Calculation: (Net Profit / Revenues) *100
Profit Markup
Profit Markup measures the company's gross profitability, as compared to the cost of revenue. Calculation: Gross Income / Cost of Revenue
PBIT Margin (Profit Before Interest & Tax)
Profit Before Interest & Tax Margin shows the profitability of the company before interest expense & taxation. Calculation: {(Net Profit+Interest+Tax) / Revenue} *100
PBT Margin (Profit Profit Before Tax Margin measures the pre-tax income over revenues.
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Before Tax)
Calculation: {Income Before Tax / Revenues} *100
Return on Equity Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. Calculation: (Net Income / Shareholders Equity)*100
Return on Capital Employed
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings. Calculation: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets
Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio measures how efficient management is at using its assets to generate earnings. Calculation: (Net Income / Total Assets)*100
Return on Fixed Assets
Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant & equipment). Calculation: (Net Income / Fixed Assets) *100
Return on Working Capital
Return on Working Capital measures the company's profitability to its working capital. Calculation: (Net Income / Working Capital) *100
GlobalData
Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs (% of Sales)
Operating costs as percentage of total revenues measures the operating costs that a company incurs compared to the revenues. Calculation: (Operating Expenses / Revenues) *100
Administration costs (% of Sales)
Administration costs as percentage of total revenue measures the selling, general and administrative expenses that a company incurs compared to the revenues. Calculation: (Administrative Expenses / Revenues) *100
Interest costs (% of Sales)
Interest costs as percentage of total revenues measures the interest expense that a company incurs compared to the revenues. Calculation: (Interest Expenses / Revenues) *100
GlobalData
Liquidity Ratios
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.
Current Ratio
Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. Calculation: Current Assets / Current Liabilities
Quick Ratio
Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Calculation: (Current Assets - Inventories) / Current Liabilities
Cash Ratio Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only
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looks at the most liquid short-term assets of the company, which are those that can be most easily used to pay off current obligations. It also ignores inventory and receivables, as there are no assurances that these two accounts can be converted to cash in a timely matter to meet current liabilities. Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
GlobalData
Leverage Ratios
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.
Debt to Equity Ratio
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on the industry in which the company operates. For example, capital-intensive industries tend to have a higher debt-equity ratio. Calculation: Total Liabilities / Shareholders Equity
Debt to Capital Ratio
Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations, along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the company has compared to its equity. This indicates to investors whether a company is more prone to using debt financing or equity financing. A company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk. Calculation: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Ratio
Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt, calculated as earnings before interest & tax by interest expense. Calculation: EBIT / Interest Expense
GlobalData
Efficiency Ratios
Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of resources.
Fixed Asset Turnover
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other fixed assets. Calculation: Net Sales / Fixed Assets
Asset Turnover
Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to the company. A higher asset turnover ratio shows that the company has been more effective in using its assets to generate revenues. Calculation: Net Sales / Total Assets
Current Asset Turnover
Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales. Calculation: Net Sales / Current Assets
Inventory Turnover
Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying. Calculation: Cost of Goods Sold / Inventory
Working Capital Turnover
Working Capital Turnover is a measurement to compare the depletion of working capital to the generation of sales. This provides some useful information as to how effectively a company is using its working capital to generate sales. Calculation: Net Sales / Working Capital
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Capital Employed Turnover
Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales revenue to the company. Calculation: Net Sales / Shareholders Equity
Capex to sales
Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets' effectiveness when compared to the sales generated. Calculation: (Capital Expenditure / Sales) *100
Net income per Employee
Net income per Employee looks at a company's net income in relation to the number of employees they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity. Calculation: Net Income / No. of Employees
Revenue per Employee
Revenue per Employee measures the average revenue generated per employee of a company. This ratio is most useful when compared against other companies in the same industry. Generally, a company seeks the highest revenue per employee. Calculation: Revenue / No. of Employees
Efficiency Ratio
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its shareholders. Calculation: Non-interest expense / Total Interest Income
GlobalData
Notes • Financial information of the company is taken from the most recently published annual reports or SEC filings • The financial and operational data reported for the company is as per the industry defined standards • Revenue converted to USD at average annual conversion rate as of fiscal year end
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GlobalData is one of the world’s leading providers of company operational data and strategic analysis, providing detailed information on tens of thousands of companies globally. Our highly qualified team of Analysts, Researchers, and Solution Consultants use proprietary data sources and various tools and techniques to gather, analyze and represent the latest and the most reliable information essential for businesses to sustain a competitive edge. Data is continuously updated and revised by large teams of research experts, so that it always reflects the latest events and information. With a large dedicated research and analysis capability, GlobalData employs rigorous primary and secondary research techniques in developing unique data sets and research material for this series and its other reports. GlobalData offers comprehensive geographic coverage across world’s most important sectors, focusing particularly on energy and healthcare.
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Disclaimer
All Rights Reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, GlobalData. The data and analysis within this report is driven by GlobalData from its own primary and secondary research of public and proprietary sources and does not necessarily represent the views of the company profiled. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that GlobalData delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such GlobalData can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.