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Philips vs Matsushita. NV Philips (Netherlands) and Matsushita Electric (Japan)
are among the largest consumer electronics companies in the world. ...
philips vs matsushita. Matsushita Electric Industrial’s (MEI) annual sales
as on November, 07 is 77.5 Billion which is seven folds ...
Philips vs Matsushita (summary). Philips was founded by Gerard Philips
and his father in 1892 in Eindhoven, Holland . Then, they ...
Philip vs Mitsushita: A new century, a new round. ... This case is about two giants in
the global consumer electronics market, namely Philips and Matsushita. ...
... Types of International Strategy: Localized vs. ... domestic or localized strategy also
presented Philips with many ... Matsushita is a good example of a company that ...
Submitted by farhannasir2000 on November 21, 2007
Category: Miscellaneous
Words: 911 | Pages: 4
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Matsushita Electric Industrial’s (MEI) annual sales as on November, 07 is 77.5 Billion which is seven folds of Philips whose annual sales is 11.6 Billion gives an impression that MEI is a larger company. Also its ranking in the global 500 accounts is 158 as compared to Philips 184.
Here below is the intensive interpretation done from the given ratios of the two companies and the other giants. The comparison is done in vision to the Industry Median.
1. PROFITABILITY
• After observing the profitability ratio of both the companies, there remains no doubt in the fact that MEI is making huge profits, compared to either Philips or to the market median. The only segment where MEI showed lower value is “Gross Profit Margin” where it lagged by 3.7% lesser value than of the Industry Median i.e. 33.50%.
• The actual value of Return on invested value is really pathetic for Philips who is going in loss of 3.7% whereas MEI is making a good profit of 4.0% even higher than the industry median of 2.8%
2. VALUATION
• A low price to sales ratio (for example, below 1.0) is usually thought to be a better investment since the investor is paying less for each unit of sales. However, sales don't reveal the whole picture, since the company might be unprofitable. MEI with 0.05 P/S Ratio is on safer side than of Philips -3.90.
• price/earnings ratio. The most common measure of how expensive a stock is. The P/E ratio is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period,
• The higher the P/E ratio, the more the market is willing to pay for each dollar of annual earnings. Companies with high P/E ratios are more likely to be considered "risky" investments than those with low P/E ratios, since a high P/E ratio signifies high expectations.
• Comparing P/E ratios is most valuable for companies within the same industry. Philips with the P/E ratio of 19.53 seems to be a safer...
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