Financial analysis of Philips with the numbers of 2012. With a conclusion if you should or should not invest in Philips.

1. Financial analysis
Sheila Dewitte
2AF01

2. Overview
• About Philips
• Ratios:
– Liquidity
– Solvency
– Profitability
•
•
•
•
Stock prices
Dividend
Conclusion
Sources

3. About Philips
• Engineering and electronics company
• Operative in more than 60 countries
• 3 main divisions:
– Philips Consumer Lifestyle
– Philips Healthcare
– Philips Lighting

4. About Philips
• Number 1 in lamps
• Worldwide number one in the field of
shavers
• Leading tender of flat TV’s

5. Quick ratio
The calculation
• The liquidity of a company
The formula
• Current assets – inventory = 1,1 > 1
Current liabilities
Philips
• Liquid company

6. Solvency
The calculation
• Able to continue meeting its debt obligations
The formula
• Total equity x 100 = 38% > 20%
Total assets
Philips
• Pay his long-term debts

7. Profitability
The calculation
• Acceptable rate of return
The formula
• Net profit x 100 = 2,07
Equity
Philips
• Positive return from the equity
• Covers the risks

8. Net income and IPS
2011
Net income (in million)
Income per common share
2012
1,291
231
1,36
0,25

9. Stock prices
35
30 28.94
25
20.33
20
15
13.76
10.95
10
5
0
08 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
'09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12
High
Low

10. Dividend
Dividende
1.00
0.80
0.70
0.70
2008
2009
2010
0.75
0.75
0.75
2011
2012
2013
0.60
0.60
0.40
0.70
0.36
0.40
0.44
0.20
0.00
2004
2005
2006
2007

11. Conclusion
•
•
•
•
•
Healthy
Continuing growing
Positive ratios
Share prices are rising
Positive dividend

12. Sources
• http://en.wikipedia.org/wiki/Philips
• http://www.philips.be/about/company/index
.page
• http://www.newscenter.philips.com/main/c
orpcomms/resources/corporate/Q3_2013/
philips-third-quarter-results-2013report.pdf