Bridgestone Corporation: Company Profile and SWOT Analysis - PDF by ICDResearch

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									Bridgestone Corporation

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Bridgestone Corporation                                                        Financial Snapshot

                                                                               Operating Performance
Fast Facts
                                                                               The company reported revenues of US$32,581.29
Headquarters Address                1-10-1 Kyobashi, Chuo-Ku, 104-8340,Japan
                                                                               million during 2010, with a CAGR of 6.09% during
                                                                               2006–2010. Its revenue grew at an annual rate of
Telephone                           + 81 3 35670111
                                                                               17.45% over the previous fiscal year. In 2010, the
                                                                               company recorded an operating margin of 5.60%, as
Fax                                 N/A                                        against 2.02% in 2009.

Website                             www.bridgestone.com
                                                                               Revenue and Margins
Ticker Symbol, Stock Exchange       5108, The Tokyo Stock Exchange

Number of Employees                 136,684

Fiscal Year End                     December

Revenue (in US$ million)            32,581.29

Revenue (in JPY million)            2,861,615.00




SWOT Analysis                                                                  Return on Equity

Strengths                           Weaknesses                                 The company recorded a return on equity (ROE) of
                                                                               8.66% for 2010, as compared to its peers, Continental
Expanded Product Portfolio          Declining Market Share in Sector           Aktiengesellschaft (Ticker: CON), Toyo Tire & Rubber
                                                                               Co., Ltd. (Ticker: 5105) and The Goodyear Tire &
                                                                               Rubber Company (Ticker: GT), which recorded ROEs
Foothold in Motor Sports Segment    Declining Operating Margin                 of 9.83%, 3.58% and -33.54% respectively. The
                                                                               company reported an operating margin of 5.60% in
Strong Liquidity Position           Low Return on Equity                       2010.

Strong Market Presence              Product Recalls                            Return on Equity

Vertical Integration

Opportunities                       Threats
                                    Challenge of Environmental
Demand for Eco-Friendly Tires
                                    Regulations
Eco-friendly Materials Offer an
                                    Global Economic Slowdown
Opportunity
Positive Outlook for Global Tire
                                    Highly Competitive Market
Industry

Potential in the Emerging Markets   Volatile Raw Materials Prices


                                                                               Liquidity Position

                                                                               The company reported a current ratio of 1.46 in 2010,
                                                                               as    compared       to   its   peers,     Continental
                                                                               Aktiengesellschaft, Toyo Tire & Rubber Co., Ltd. and
                                                                               The Goodyear Tire & Rubber Company, which
                                                                               recorded current ratios of 1.12, 1.10 and 1.52
                                                                               respectively. As of December 2010, the company
                                                                               recorded cash and short-term investments of worth
                                                                               US$3,399.32 million, against US$2,374.58 million
                                                                               current debt. The company reported a debt to equity
                                                                               ratio of 0.58 in 2010 as compared to its peers,
                                                                               Continental Aktiengesellschaft, Toyo Tire & Rubber
                                                                               Co., Ltd. and The Goodyear Tire & Rubber Company,
                                                                               which recorded debt to equity ratios of 1.53, 1.31 and
                                                                               7.37 respectively.




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Bridgestone Corporation - SWOT Profile                                                                                 Page 1
Bridgestone Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
    2.2       Key Financial Performance Indicators .................................................................................................................11
      2.2.1       Revenue and Operating Profit .........................................................................................................................11
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................12
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................13
      2.2.4       Operational Efficiency ......................................................................................................................................14
      2.2.5       Solvency ..........................................................................................................................................................15
      2.2.6       Valuation ..........................................................................................................................................................16
    2.3       Competitive Benchmarking ..................................................................................................................................17
      2.3.1       Efficiency ..........................................................................................................................................................17
      2.3.2       Capital Expenditure ..........................................................................................................................................18
      2.3.3       Valuation ..........................................................................................................................................................19
      2.3.4       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.5       Liquidity ............................................................................................................................................................21
3     Recent Developments ........................................................................................................................... 22
4     SWOT Analysis ...................................................................................................................................... 2
								
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