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Sony Corp. (SNE) | Long-term Debt and Solvency Analysis

Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.

Ratios (Summary)

Sony Corp., debt and solvency ratios

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Debt to equity	0.58	0.38	0.41	0.37	0.31	0.33
Debt to capital	0.37	0.28	0.29	0.27	0.24	0.25
Interest coverage	-2.55	9.57	2.20	-6.18	25.73	7.62

Source: Based on data from Sony Corp. Annual Reports

Ratio	Description	The company
Debt-to-equity ratio	A solvency ratio calculated as total debt divided by total shareholders' equity.	Sony Corp.'s debt-to-equity ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Debt-to-capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders' equity.	Sony Corp.'s debt-to-capital ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Sony Corp.'s interest coverage ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Short-term borrowings	1,215	646	524	3,091	631	443
Current portion of long-term debt	3,778	1,318	2,535	1,502	2,913	366
Long-term debt, excluding the current portion	9,274	9,768	9,933	6,720	7,277	8,479
Total debt	14,267	11,733	12,992	11,313	10,821	9,288
Sony Corporation’s stockholders’ equity	24,685	30,643	31,878	30,181	34,585	28,553
Debt to Equity, Comparison to Industry
Sony Corp.¹	0.58	0.38	0.41	0.37	0.31	0.33
Industry, Consumer Goods	1.02	1.01	0.97	0.97	0.87	–

Source: Based on data from Sony Corp. Annual Reports

2012 Calculations

¹ Debt to equity = Total debt ÷ Sony Corporation’s stockholders’ equity
= 14,267 ÷ 24,685 = 0.58

Ratio	Description	The company
Debt-to-equity ratio	A solvency ratio calculated as total debt divided by total shareholders' equity.	Sony Corp.'s debt-to-equity ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Short-term borrowings	1,215	646	524	3,091	631	443
Current portion of long-term debt	3,778	1,318	2,535	1,502	2,913	366
Long-term debt, excluding the current portion	9,274	9,768	9,933	6,720	7,277	8,479
Total debt	14,267	11,733	12,992	11,313	10,821	9,288
Sony Corporation’s stockholders’ equity	24,685	30,643	31,878	30,181	34,585	28,553
Total capital	38,952	42,376	44,870	41,494	45,406	37,841
Debt to Capital, Comparison to Industry
Sony Corp.¹	0.37	0.28	0.29	0.27	0.24	0.25
Industry, Consumer Goods	0.50	0.50	0.49	0.49	0.47	–

Source: Based on data from Sony Corp. Annual Reports

2012 Calculations

¹ Debt to capital = Total debt ÷ Total capital
= 14,267 ÷ 38,952 = 0.37

Ratio	Description	The company
Debt-to-capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders' equity.	Sony Corp.'s debt-to-capital ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Net income (loss) attributable to Sony Corporation's stockholders	(5,556)	(3,122)	(439)	(1,007)	3,687	1,070
Add: Net (income) loss attributable to noncontrolling interests	709	472	578	(33)	(58)	4
Add: Interest expense	285	288	242	248	229	231
Add: Income tax expense (benefit)	3,835	5,115	150	(741)	2,031	456
Earnings before interest and tax (EBIT)	(727)	2,753	531	(1,533)	5,889	1,762
Interest Coverage, Comparison to Industry
Sony Corp.¹	-2.55	9.57	2.20	-6.18	25.73	7.62
Industry, Consumer Goods	14.33	14.76	12.20	10.17	20.33	–

Source: Based on data from Sony Corp. Annual Reports

2012 Calculations

¹ Interest coverage = EBIT ÷ Interest expense
= -727 ÷ 285 = -2.55

Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Sony Corp.'s interest coverage ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.