Sony Financial Analysis

Sony Corporation Financial Statement

Sony will begin to build its recently relaunched mobile franchise with a first tablet device pitched at the premium end of an already crowded market. The tablet, announced at mobile Word Congress in Barcelona on Monday, offers market-leading feature in camera quality, screen resolution and connectivity. Similar to Sony’s Xperia Z smartphone, which was unveiled last month, the device will also be waterproof (Thomas D, 2013).

Sony Corporation headquartered in Tokyo is a Japanese base leading global manufacturer of audio, video, communications and information technology products. Sony initially launched in Tokyo Stock Exchange in 1958, then in Osaka Securities Exchange, New York Stock Exchange and London Stock Exchange from 1960 to 1970.

On February 7, 2013, Sony announced its consolidated financial results for the third quarter ended December 31, 2012 (Sony news 2013). In the statement, Sony shows year-on-year sales performance, operating results and sales forecast for the year ending March 31, 2013.

Figure 1.1 Sales and operating revenue for third quarter ended December 31.

The international Accounting Standards Board defines income as ‘increases in economic benefits during the accounting period’ (IASB Framework, paragraph 70(a)). Revenue represents sales income earned in an accounting period and may be referred to in some sets of accounts as sales or turnover as well as by the term revenue. Revenue appears as first item in the income statement and arises from sales made by an entity in the ordinary (everyday) course of business. In figure 1.1, an increase of 6.9% on sales was primarily due to a significant increase in sales in the MP&C segment, the Pictures segment and the Financial services segment, while sales decreased significantly primarily in the HE&S segment, resulting from a decrease in LCD television unit sales, and in the Game segment.

Peter Scott stated (2012) relationships between financial figures...