Archive This company is transferred to the archive: financial data is no longer updated!


Long-term Debt and Solvency Analysis

Difficulty level: Basic

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.

ADVERTISEMENT

Top


Debt to Equity

Sony Corp., debt to equity calculation, comparison to benchmarks

 
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 
Ratio
Debt to equity1 0.58 0.38 0.41 0.37 0.31 0.33
Benchmarks
Debt to Equity, Industry
Consumer Goods 0.94 0.92 0.94 1.07

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.

ADVERTISEMENT

Top


Debt to Capital

Sony Corp., debt to capital calculation, comparison to benchmarks

 
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 
Ratio
Debt to capital1 0.37 0.28 0.29 0.27 0.24 0.25
Benchmarks
Debt to Capital, Industry
Consumer Goods 0.48 0.48 0.48 0.52

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.

ADVERTISEMENT

Top


Interest Coverage

Sony Corp., interest coverage calculation, comparison to benchmarks

 
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 attributable to noncontrolling interest 709  472  578  (33) (58)
Add: Income tax expense 3,835  5,115  150  (741) 2,031  456 
Add: Interest expense 285  288  242  248  229  231 
Earnings before interest and tax (EBIT) (727) 2,753  531  (1,533) 5,889  1,762 
Ratio
Interest coverage1 -2.55 9.57 2.20 -6.18 25.73 7.62
Benchmarks
Interest Coverage, Industry
Consumer Goods 8.61 13.89 9.67 8.59

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.

ADVERTISEMENT

Top