Another step aside: Kobe Steel

This post should be about one of the companies from the list I presented last time. Yet I will pick another one for the second time. On the list (actually a collection of links presenting lists) two steel companies will be found, but not Kobe Steel. This companies has been in the news several times because of quality issues. We can only guess why employees tampered with the numbers but we can show the healthiness of Kobe Steel by presenting numbers from the annual report in a typical AnRep3D spatial graph. The annual report for 2017 is available at: http://www.kobelco.co.jp/english/ir/library/annualreport/2017annual/__icsFiles/metafile/2017/08/24/annualreport_2017.pdf It seems to be early to have an annual report for a year even not finished, but their book-year only holds the first quarter of 2017 as the other three are of 2016.

Total sales is $15,116 MM. It’s without extraordinary income being $72.575 MM so the total revenue would be $15,189 MM or about 15 billion dollars. The costs of sales are very high and then the other costs will nearly consume the remainder, leaving only a small amount of margin before taxes. And although there even is some net attribution from subsidiaries, the result after taxes is still a loss: $ -205.411 MM  The total assets are : $20,594 MM and Equity is $6,092 MM. Let’s put those values into an input-file for the free AnRep3D demo-generator:

Kobe Steel input

 

Remember (or read in the manual) that the first line is the parameter-line. It starts with the number of companies and the number of years (we can enter any value in the demo, e.g. 10,10 but as it only reads one single line of data the effect will be 1,1 so that’s what is shown here. The licensed full version will accept a large number of companies and years). After those first values the scaling-factor is provided. Here we divided all values by 500 to get values roughly between 1 and 100 which will provide a normal graph. Then the extra space between the buildings is mentioned but this is useless for the demo-generator as it only offers one single “building”. Finally the value for the font-size is entered. The second line holds the name of Kobe Steel and the year of the annual report, followed by revenue, profit,  equity and total assets.

The result looks like this (the 3D-graph was turned around before taking a screenshot to have a better view):

Kobe SteelA rather normal company with a small loss. Maybe the forged quality-numbers increased the sales a little bit or lowered the costs but the scandal it caused will cost much, much more! Manufacturing is difficult and a lot of capital is needed to get the factories going.

Clicking the image will start the real 3D graph in your default browser (both Javascript and WebGL should be enabled). If you don’t trust the connection, download the .htm file first, using right-click. Have a look at the file and start it locally by double clicking it in Windows Explorer. The 3D-graphs can be manipulated in real-time: clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

Philips 2016The same applies to Philips and it shows more or less the same ratios although there is a profit. Yet Kobe Steel doesn’t look like a company fighting for its life, seeing no other way out than selling a lower quality of steel and other metals!

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About AnRep3D

AnRep3D is the new company, founded after the handover of Scientassist (together with VRBI) to one of my sons. From now I will focus on three-dimensional graphs for the financial markets, showing the main figures from annual reports in comparison.
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