Wireless Communication Equipment and Services in Finland: A Strategic Reference, 2006
Edited by
Philip M. Parker, Ph.D. Eli Lilly Chair Professor of Innovation, Business and Society INSEAD (Fontainebleau & Singapore)
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About Icon Group International, Inc. Icon Group International, Inc.’s primary mission is to assist managers with their international information needs. U.S.-owned and operated, Icon Group has field offices in Paris, Hong Kong, and Lomé, Togo (West Africa). Created in 1994, Icon Group has published hundreds of multi-client databases, and global/regional market data, industry and country publications. Global/Regional Management Studies: Summarizing over 190 countries, management studies are generally organized into regional volumes and cover key management functions. The human resource series covers minimum wages, child labor, unionization and collective bargaining. The international law series covers media control and censorship, search and seizure, and trial justice and punishment. The diversity management series covers a variety of environmental context drivers that effect global operations. These include women’s rights, children’s rights, discrimination/racism, and religious forces and risks. Global strategic planning studies cover economic risk assessments, political risk assessments, foreign direct investment strategy, intellectual property strategy, and export strategies. Financial management studies cover taxes and tariffs. Global marketing studies focus on target segments (e.g. seniors, children, women) and strategic marketing planning. Country Studies: Often managers need an in-depth, yet broad and up-to-date understanding of a country’s strategic market potential and situation before the first field trip or investment proposal. There are over 190 country studies available. Each study consists of analysis, statistics, forecasts, and information of relevance to managers. The studies are continually updated to insure that the reports have the most relevant information available. In addition to raw information, the reports provide relevant analyses which put a more general perspective on a country (seen in the context of relative performance vis-à-vis benchmarks). Industry Studies: Companies are racing to become more international, if not global in their strategies. For over 2000 product/industry categories, these reports give the reader a concise summary of latent market forecasts, pro-forma financials, import competition profiles, contacts, key references and trends across 200 countries of the world. Some reports focus on a particular product and region (up to four regions per product), while others focus on a product within a particular country.
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Table of Contents 1
INTRODUCTION & METHODOLOGY.............................................................................1
1.1
What Does This Report Cover?
1
1.2
How to Strategically Evaluate Finland
1
1.3
Latent Demand and Accessibility in Finland
3
2 2.1
WIRELESS COMMUNICATION EQUIPMENT AND SERVICES IN FINLAND........5 Latent Demand and Accessibility: Background
5
2.2 Latent Demand: Market Composition 5 2.2.1 Internet ....................................................................................................................................................... 6 2.2.2 Broadband .................................................................................................................................................. 6 2.2.3 Short Message Service (SMS).................................................................................................................... 6 2.2.4 Third Generation Mobile Networks ........................................................................................................... 7 2.3
Latent Demand: Market Data
7
2.4 Latent Demand: Leading Segments 7 2.4.1 Funding ...................................................................................................................................................... 8 2.4.2 Potential for U.S. Companies ..................................................................................................................... 8 2.4.3 Mediateam Oulu Research Group .............................................................................................................. 8 2.5
Accessibility: Market Entry
8
2.6
Market Issues and Obstacles
9
2.7
Key Contacts
9
3
FINANCIAL INDICATORS: COMMUNICATIONS EQUIPMENT .............................10
3.1 Overview 10 3.1.1 Financial Returns and Gaps in Finland..................................................................................................... 11 3.1.2 Labor Productivity Gaps in Finland ......................................................................................................... 14 3.1.3 Limitations and Extensions ...................................................................................................................... 14 3.2 Financial Returns in Finland: Asset Structure Ratios 15 3.2.1 Overview .................................................................................................................................................. 15 3.2.2 Assets – Definitions of Terms .................................................................................................................. 15 3.2.3 Asset Structure: Outlook .......................................................................................................................... 18 3.2.4 Large Variances: Assets ........................................................................................................................... 19 3.2.5 Key Percentiles and Rankings .................................................................................................................. 22 3.3 Financial Returns in Finland: Liability Structure Ratios 37 3.3.1 Overview .................................................................................................................................................. 37 3.3.2 Liabilities and Equity – Definitions of Terms .......................................................................................... 37 3.3.3 Liability Structure: Outlook ..................................................................................................................... 39 3.3.4 Large Variances: Liabilities ..................................................................................................................... 40 3.3.5 Key Percentiles and Rankings .................................................................................................................. 43 3.4
Financial Returns in Finland: Income Structure Ratios
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Contents 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5
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Overview .................................................................................................................................................. 56 Income Statements – Definitions of Terms .............................................................................................. 56 Income Structure: Outlook ....................................................................................................................... 59 Large Variances: Income.......................................................................................................................... 60 Key Percentiles and Rankings .................................................................................................................. 63
3.5 Financial Returns in Finland: Profitability Ratios 78 3.5.1 Overview .................................................................................................................................................. 78 3.5.2 Ratios – Definitions of Terms .................................................................................................................. 78 3.5.3 Ratio Structure: Outlook .......................................................................................................................... 80 3.5.4 Large Variances: Ratios ........................................................................................................................... 81 3.5.5 Key Percentiles and Rankings .................................................................................................................. 84 3.6 Productivity in Finland: Asset-Labor Ratios 99 3.6.1 Overview .................................................................................................................................................. 99 3.6.2 Asset to Labor: Outlook ......................................................................................................................... 100 3.6.3 Asset to Labor: International Gaps......................................................................................................... 101 3.6.4 Key Percentiles and Rankings ................................................................................................................ 104 3.7 Productivity in Finland: Liability-Labor Ratios 119 3.7.1 Overview ................................................................................................................................................ 119 3.7.2 Liability to Labor: Outlook .................................................................................................................... 120 3.7.3 Liability and Equity to Labor: International Gaps.................................................................................. 121 3.7.4 Key Percentiles and Rankings ................................................................................................................ 124 3.8 Productivity in Finland: Income-Labor Ratios 137 3.8.1 Overview ................................................................................................................................................ 137 3.8.2 Income to Labor: Outlook ...................................................................................................................... 138 3.8.3 Income to Labor: Gaps ........................................................................................................................... 139 3.8.4 Key Percentiles and Rankings ................................................................................................................ 142
4
MACRO-ACCESSIBILITY IN FINLAND ......................................................................157
4.1 Executive Summary 157 4.1.1 Nokia – A Big Company in a Small Country......................................................................................... 157 4.1.2 Finnish-U.S. Trade ................................................................................................................................. 157 4.1.3 Finland: A Springboard to Russia and the Baltic States......................................................................... 157 4.2 Economic Fundamentals and Dynamics 158 4.2.1 Government Intervention Risks.............................................................................................................. 158 4.2.2 Balance of Payments Issues ................................................................................................................... 158 4.2.3 Infrastructure Development.................................................................................................................... 159 4.3 Political Risks 159 4.3.1 Economic Relationship with the United States ...................................................................................... 159 4.3.2 The Political System............................................................................................................................... 160 4.4 Marketing Strategies 160 4.4.1 Creating a Sales Office........................................................................................................................... 160 4.4.2 Creating a Joint Venture......................................................................................................................... 160 4.4.3 Agents and Distributors.......................................................................................................................... 160 4.4.4 Checking Bona Fides.............................................................................................................................. 161 4.4.5 Distribution Channel Options................................................................................................................. 161 4.4.6 Selling Strategies.................................................................................................................................... 162
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Contents 4.4.7 4.4.8 4.4.9 4.4.10
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Pricing and Licensing............................................................................................................................. 162 Advertising Options ............................................................................................................................... 162 Trade Promotion..................................................................................................................................... 163 Public Sector Marketing......................................................................................................................... 164
4.5 Import and Export Regulation Risks 165 4.5.1 Adherence to Free Trade Agreements .................................................................................................... 165 4.5.2 Trade Barrier Risks ................................................................................................................................ 165 4.5.3 Tariff Rates............................................................................................................................................. 165 4.5.4 Restrictions on Imports .......................................................................................................................... 166 4.5.5 Local Standards ...................................................................................................................................... 166 4.5.6 Labeling Issues....................................................................................................................................... 168 4.5.7 Controls on Exports................................................................................................................................ 169 4.5.8 Import Tariffs and License Requirements .............................................................................................. 169 4.5.9 Customs Regulations and Contact Information...................................................................................... 170 4.5.10 Entering Temporary Imports .................................................................................................................. 170 4.5.11 Additional Trade Issues.......................................................................................................................... 170 4.5.12 Free Trade Zones and Warehouses......................................................................................................... 171 4.6 Investment Climate 171 4.6.1 Openness to Foreign Investment ............................................................................................................ 171 4.6.2 Conversion and Transfer Policies........................................................................................................... 172 4.6.3 Expropriation and Compensation ........................................................................................................... 172 4.6.4 Dispute Settlement ................................................................................................................................. 172 4.6.5 Performance Requirements and Incentives ............................................................................................ 172 4.6.6 Right to Private Ownership and Establishment ...................................................................................... 173 4.6.7 Intellectual Property Risks ..................................................................................................................... 173 4.6.8 Transparency of the Regulatory System................................................................................................. 174 4.6.9 Capital Market Risks .............................................................................................................................. 174 4.6.10 Political Violence ................................................................................................................................... 174 4.6.11 Corruption .............................................................................................................................................. 174 4.6.12 Bilateral Investment Agreements ........................................................................................................... 175 4.6.13 OPIC and Other Investment Insurance................................................................................................... 175 4.6.14 Labor ...................................................................................................................................................... 176 4.7 Trade and Project Financing 176 4.7.1 The Banking System .............................................................................................................................. 176 4.7.2 Foreign Exchange Control Risks............................................................................................................ 176 4.7.3 General Financing Availability .............................................................................................................. 177 4.7.4 Financing Export Strategies ................................................................................................................... 177 4.7.5 Types of Available Export Financing and Insurance ............................................................................. 177 4.7.6 Financing Projects .................................................................................................................................. 179 4.7.7 Banks with Correspondent Banking Arrangements ............................................................................... 179 4.8 Travel Risks 179 4.8.1 Local Business Practices ........................................................................................................................ 179 4.8.2 Visa Requirements and Travel Information ........................................................................................... 179 4.8.3 Infrastructure for Conducting Business.................................................................................................. 180 4.8.4 Country Data .......................................................................................................................................... 181 4.9 Key Contacts 181 4.9.1 U.S. Embassy Trade Personnel .............................................................................................................. 181 4.9.2 Washington-Based U.S. Government Contacts...................................................................................... 182 4.9.3 Chambers of Commerce......................................................................................................................... 183 www.icongrouponline.com
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World Trade Center in Helsinki ............................................................................................................. 184 Trade Associations ................................................................................................................................. 184 Finnish Government Agencies ............................................................................................................... 186 Market Research Firms .......................................................................................................................... 188 Commercial Banks ................................................................................................................................. 188
DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS .........190
5.1
Disclaimers & Safe Harbor
190
5.2
Icon Group International, Inc. User Agreement Provisions
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1 1.1
INTRODUCTION & METHODOLOGY WHAT DOES THIS REPORT COVER?
The primary audience for this report is managers involved with the highest levels of the strategic planning process and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning relating to wireless communication equipment and services in Finland. As the editor of this report, I am drawing on a methodology developed at INSEAD, an international business school (www.insead.edu). For any given industry or sector, including wireless communication equipment and services, the methodology decomposes a country’s strategic potential along four key dimensions: (1) latent demand, (2) micro-accessibility, (3) proxy operating pro-forma financials, and (4) macro-accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility. With this perspective, this report provides both a micro and a macro strategic profile of wireless communication equipment and services in Finland. It does so by compiling published information that directly relates to latent demand and accessibility, either at the micro or macro level. The reader new to Finland can quickly understand where Finland fits into a firm’s strategic perspective. In Chapter 2, the report investigates latent demand and micro-accessibility for wireless communication equipment and services in Finland. In Chapters 3 and 4, the report covers proxy operating pro-forma financials and macro-accessibility in Finland. Macroaccessibility is a general evaluation of investment and business conditions in Finland.
1.2
HOW TO STRATEGICALLY EVALUATE FINLAND
Perhaps the most efficient way of evaluating Finland is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance to wireless communication equipment and services are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).
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Introduction & Methodology
2
Framework for Prioritizing Countries Demand/Market Potential Driven Firm
High
Highest Priority
High Priority Latent Demand
Moderate Priority Low Priority
Low
Lowest Priority Low
High Relative Accessibility
Accessibility/Supply Averse Firm High Highest Priority High Priority Latent Demand
Moderate Priority Low Priority Lowest Priority
Low High
Low Relative Accessibility
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Introduction & Methodology
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In the top figure, the firm is driven by market potential, whereas the bottom figure represents a firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as coming from a “generic firm” approaching the global market – neither a market-driven nor a costdriven company. Planners must therefore augment this report with their own company-specific factors that might change the priorities (e.g. a Canadian firm may have higher accessibility in Canada than a German firm).
1.3
LATENT DEMAND AND ACCESSIBILITY IN FINLAND
This report provides a detailed overview of factors driving latent demand and accessibility for wireless communication equipment and services in Finland. Latent demand is largely driven by economic fundamentals specific to wireless communication equipment and services. This topic is discussed in Chapter 2 using work carried out in Finland on behalf of American firms and authored by the United States government (typically commercial attachés or similar persons in local offices of the U.S. Department of State). I have included a number of edits to clarify the information provided. Latent demand only represents half of the picture. Chapter 2 also deals with micro-accessibility for wireless communication equipment and services in Finland. I use the term “micro” since the discussion is focused specifically on wireless communication equipment and services. Chapter 3 is also a stand-alone report that I have authored. It covers proxy pro-forma financial indicators of firms operating in Finland. I use the word “proxy” because the provided figures only cover a “what if” scenario, based on actual operating results for firms in Finland. The numbers are only indicative of an average firm whose primary activity is in Finland. It covers a vertical analysis of the maximum likelihood balance sheet, income statement, and financial ratios of firms operating in Finland. It does so for a particular Standard Industrial Classification (SIC) code. That code covers “communications equipment”, as defined in Chapter 3. Again, while “communications equipment” does not exactly equate to “wireless communication equipment and services”, it nevertheless gives an indicator of how Finland compares to other countries for a proxy adjacent category along various dimensions. Chapter 4 deals with macro-accessibility and covers factors that go beyond wireless communication equipment and services. A country may at first sight appear to be attractive due to a high latent demand, but it is often less attractive when one considers at the macro level how easy it might be to serve that entire potential and/or general business risks. While accessibility will always vary from one company to another for a given country, the following domains are typically considered when evaluating macro-accessibility in Finland: •
Openness to Trade in Finland
•
Openness to Direct Investment in Finland
•
Local Marketing and Entry Strategy Alternatives
•
Local Human Resources
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Introduction & Methodology •
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Local Risks
Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These are covered in the Chapter 4, which is a general overview of investment and business conditions in Finland. Chapter 4 is also presented from the perspective of an American firm, though is equally applicable to most firms entering Finland. This chapter is also authored by local offices of the U.S. government, as is Chapter 2. Likewise, I have included a number of edits to clarify the provided information as it relates to the general strategic framework mentioned earlier.
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2 2.1
WIRELESS COMMUNICATION EQUIPMENT AND SERVICES IN FINLAND LATENT DEMAND AND ACCESSIBILITY: BACKGROUND
This market brief gives a general overview of Finland’s wireless communications market, highlighting specific sectors in the wireless sector. It also describes U.S. business opportunities in the Finnish market, refers to available statistical data, and provides information on market entry for U.S. companies.
2.2
LATENT DEMAND: MARKET COMPOSITION
Finland has a highly industrialized, free-market economy, with per capita output roughly that of the United Kingdom, France, Germany, and Italy. Largely due to the Finnish Government’s heavy investment in technology, expertise and education, Finland is consistently ranked as one of the most competitive economies in the world. The government’s economic policy is strongly technology-based, with government research and development (R&D) funding amounting to about €1,7 ($2.1) billion in 2006, an increase of €83 ($103) million from the previous year. Government R&D expenditure as a proportion of overall government spending exclusive of debt servicing stands at 4.5%, which is the same as in the year before. The share of public R&D funding of GDP exceeds 1.05%. By international comparison, the GDP share of R&D expenditure in Finland is still among the top in the world. In a decade, Finland has risen to join the group of leading producers and users of information and communications technologies. At the same time, its entire economic and export structure has fundamentally changed. Its economy has shifted from a production structure intensive capital, raw materials, energy and scale to an information-intensive one. High-tech foreign trade is clearly in surplus and the R&D input in relation to GDP is one of the highest in the world. Finland has become an export-driven location for leading international information and communications technology (ICT) sector companies. Finland is seen as a pioneering adapter and an important research center for new technology. International companies (e.g., ICL, IBM, Siemens, Hewlett-Packard, Ericsson and Lotus) have set up research units in Finland, increased their cooperation with Finnish firms, or acquired small companies in the sector. Although with only 5.2 million people the Finnish market is small, Finnish consumers and companies have proven to be quick to adopt new technologies. The telecommunications market in Finland is fully liberalized—no licenses are needed, except for digital television networks and building mobile networks. Finland’s Ministry of Transport and Communications is responsible for licensing. The fact that Finland was among the first to open its telecommunications market has resulted in the lowest mobile tariffs in Organization for Economic Cooperation and Development (OECD) countries. Finland has been a pioneer in popularizing mobile phones. At the beginning of 2000 it was the country with the highest penetration rate in the world: 65% of Finns were already using mobile phones. The penetration rate now stands at 100% and there are nearly 5.2 million subscribers. Since July 2003, mobile customers have been able to switch operators while preserving their mobile numbers. This has made switching operators more attractive to customers, and thus substantially increased competition between service providers, in the already highly competitive telecommunications market.
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Wireless Communication Equipment and Services
2.2.1
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Internet
With an Internet penetration rate of 62.5%, Finland is among the top nations in Internet use. It is also the world’s leading country in electronic banking. According to a recent report by Statistics Finland, about three out of four, or 73%, of 15-74 year-olds used the Internet in spring 2005. Since 2001, use of the Internet has grown by about twenty percentage points. The greatest relative increase has been among people aged 60 or over. In the age group of 30-49 year-olds more women than men are using the Internet. Among pension-age people, men use the Internet more often than women. Internet use has become more regular over the past few years, one reason being the acceleration of Internet connections. There are no significant differences in daily Internet use among people of different ages, except among over 65-year-olds, of whom only a few use the Internet often. In spring 2005, around two thirds of home Internet users used the connection daily or almost daily. The use of the Internet for everyday matters has become more diverse. A special Finnish feature in Internet use is net banking, which is not used as widely elsewhere. More than three quarters of Internet users take care of bank transactions via the Internet. Around every third has been online shopping. Two thirds have browsed travel and accommodation services, and more than every second Internet user has read online magazines.
2.2.2
Broadband
The popularity of broadband in Finland has also grown very rapidly. In 2005, Finland’s broadband penetration was 22.5 subscribers per 100 inhabitants. There were about one million broadband connections in Finland in June 2005, with Finland ranked fourth highest in the European Union (EU) in terms of the number of connections per household and third-highest in terms of the number of connections per one hundred inhabitants. In the twelve months covered by the report, the number of broadband connections in Finland increased by almost 40% and broadband penetration in Finnish households rose by 11 percentage points. According to a report published in January 2006 by Finland’s Ministry of Transport and Communications, price levels for broadband connections in Finland are currently among the most competitive in the EU, with the average monthly rental for each connection speed being substantially lower than the average for the 25 EU Member States.
2.2.3
Short Message Service (SMS)
Some 2.8 billion person-to-person messages were sent in Finland in 2005—an increase of 29% on the previous year. Personal text messaging is still the most-used mobile phone service. The Ministry of Transport and Communications of Finland has been reviewing the markets for Short Message Services (SMS) and other mobile phone services, now for the seventh time. The study divides the markets into three groups: person-to-person messaging, content, and data services. In 2005, the total value of the markets increased by 16% to about €284 ($353) million. At the end of last year, some 2.5 million mobile phones had color screens—almost half of the mobile phones in Finland. There were about 1.2 million mobiles with built-in cameras and about 300,000 smart phones, roughly 6% of all subscriptions. The growth in text message traffic increased particularly due to a change in pricing, with the operators offering packages in which a certain number of text messages were included in the monthly fee. The price of individual messages continued to fall in 2005. Nevertheless the total value of the text message market grew to €178 ($221) million, which was 13% more than the year before. Content and data services account for a good third of the mobile service market. The data service markets grew most last year, increasing by 43% to €30 ($37) million. The content service markets grew by 16% to €71 ($88.3) million. The most profitable content services were the information search services, ring tones and chat services. www.icongrouponline.com
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It is estimated that operators will be marketing more mobile phone services in the next few years, while competition in recent years has focused on the cost of calls and text messages.
2.2.4
Third Generation Mobile Networks
Finland was the first country in the world to grant operating licenses for the third-generation (3G) mobile communications market; the operating licenses were granted in March 1999. In spring 2004, the Government amended the 3G mobile network-operating licenses. The new licenses include conditions covering the shared use of networks and national roaming. Third-generation mobile networks are currently being set up in Finland. The 3G licenses have been granted for TeliaSonera Finland Oy, Elisa Communications (previously Radiolinja Oy), Pearl 3G Ab (Finnet Group), and Suomen 3G (Tele2). Aland Mobiltelefon and Song Networks have received licenses that only cover the Aland Islands. The operating licenses allowing construction of these networks are held by Elisa Corporation (Radiolinja), Sonera Mobile Networks Oy and Finnet Networks Ltd. Both TeliaSonera and Elisa have already opened their Universal Mobile Telecommunications System (UMTS) networks for commercial use in Finland. Third-generation mobiles are foreseen to become more widespread in Finland in 2006. One of the reasons is the ending of the ban on “tie-in” sales of phones and services. On June 22, 2005, the Government also granted an operating license to Digita Oy to build a new digital mobile communications network, using Flash-OFDM (Orthogonal Frequency Division Multiplexing) technology. It will be the first time in the world this technology will be put to extensive use in mobile networks.
2.3
LATENT DEMAND: MARKET DATA
For statistical data, please see Nordic Information Society Statistics at: www.stat.fi/NordicInformationSociety2005.pdf.
2.4
LATENT DEMAND: LEADING SEGMENTS
Highly competitive, the telecommunications sector is growing fast, with high demand for Internet and mobile services and content expected to continue. With the increasing numbers of broadband Internet connections, ecommerce is expected to benefit. Demand for home entertainment electronics, digital cameras, and mp3 players will also remain high. The security sector is also growing. Although competitive, the security market offers opportunities for high-quality products. The Finnish market is small, and large companies are few in number—they tend to have established software systems. Therefore, software market opportunities for U.S. companies are mostly within the small and medium-sized enterprises (SME) market. Due to high technical standards and the liberalized telecommunications market, Finland serves as an excellent test base for new technologies for U.S. information technology companies. Finland also has expertise in developing computer software products and is looking for U.S. partners who can provide funding. U.S. information technology companies wishing to enter the Baltic markets and Russia (especially St. Petersburg) should view Finland as a natural gateway and Finnish companies as experienced partners in any such effort. www.icongrouponline.com
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Wireless Communication Equipment and Services
2.4.1
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Funding
TEKES is the main public funding organization for R&D in Finland. Tekes funds industrial projects as well as projects in research organizations. It especially promotes innovative, risk-intensive projects. Tekes offers partners from abroad a gateway to key technology players in Finland. Tekes has increased its cooperation with the United States and Japan by providing project funding and by partnering with several institutes. Such agreements are seen as beneficial both by Finnish researchers wishing to work abroad, and international partners wishing to tap into Finnish technology. Experienced technology experts serve both Finnish and overseas companies and research organizations, particularly in facilitating R&D cooperation within Tekes technology programs (see www.tekes.fi).
2.4.2
Potential for U.S. Companies
The companies listed in “Wireless Technology from Finland” booklet are at the edge of the latest product, service, and process innovations in ICT, with a clear focus on wireless solutions. They are actively seeking partners, already have strong networks to build on, and can offer U.S. companies new business opportunities. For more information, please visit www.finpromarketing.fi.
2.4.3
Mediateam Oulu Research Group
MediaTeam is a member of Infotech Oulu, an umbrella organization of information technology research at the University of Oulu, located about 380 miles north of Helsinki. MediaTeam is also actively involved in the operation of Mobile Forum and operates in close collaboration with companies and other players in the field. The researchers have the advantage of developing future technologies with the top names in the industry, while company representatives have the possibility to keep track of scientific research in their field. MediaTeam is also an international research group: its 40 researchers represent several different nationalities. The group was established in 1997. MediaTeam conducts research on the features, use, and applications of multimedia and digital media types (image, sound, video, and text) in information and communications systems. Its research combines different areas of information and telecommunications technology, with a special focus on mobility and wireless features as well as future generations of communications technology. MediaTeam collaborates with a number of international academic research institutions, the most important of which are Linköping University in Sweden and the University of Maryland in the United States, with which MediaTeam has a bilateral researcher exchange program. The most important domestic research partners are VTT Electronics as well as research groups and departments at the University of Oulu (see www.mediateam.oulu.fi).
2.5
ACCESSIBILITY: MARKET ENTRY
Finland’s import climate is very open and receptive to U.S. products. Because Finland is a member of the EU, products manufactured in the EU are not subject to import duty if manufactured within the trading bloc. However, since the beginning of 1999, computer hardware imported to Finland from third countries, such as the United States, has also entered Finland duty-free. Regardless of the origin of production, Finland applies a value-added tax of 22% to all imported goods.
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One exclusive agent/distributor is usually appointed to cover the entire country, mainly due to the relatively small size of the Finnish market. Finnish importers often represent many different product lines.
2.6
MARKET ISSUES AND OBSTACLES
Finland’s import climate is open and receptive to U.S. products and investments. There are no significant trade barriers or regulations that U.S. firms need to take into consideration.
2.7
KEY CONTACTS
•
Ministry of Transport and Communications: www.mintc.fi
•
Finnish Federation for Communications and Teleinformatics: www.ficom.fi
•
www.swbusiness.fi
•
www.hightechfinland.fi
•
www.investinfinland.fi
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3 3.1
FINANCIAL INDICATORS: COMMUNICATIONS EQUIPMENT OVERVIEW
Is Finland competitive? With the globalization of markets, the increased mobility of corporate assets, and the need for productive human resources, this question has become all the more complex to answer. The financial indicators section was prepared to tackle this question by focusing on certain fundamentals: financial performance and labor productivity. Rather than focus on the economy as a whole, the analysis presented here considers only one sector: communications equipment. We are essentially interested in the degree to which firms operating in Finland have fundamentally different financial structures and performance compared to firms located elsewhere. With respect to this view of competitiveness, if one were to invest or operate in Finland, how would the firm’s asset structure likely vary compared to a firm operating in some other country in Europe or average location in the world? In Finland, do firms typically hold more cash and other short term assets, or do they concentrate their assets in physical plant and equipment? On the liability side, do firms operating in Finland have a higher percent of payables compared to other firms operating in Europe, or do they hold a higher concentration of long term debt? The structure of the income statement is also telling. Do firms operating in Finland have relatively higher costs of goods sold, operating costs, or income taxes compared to firms located elsewhere in the region or the world in general? Are returns on equity higher in Finland? Are profit margins greater? Are inventories held longer? The financial indicators section was designed to answer these and similar questions that naturally affect one’s decision to invest or operate in Finland. Again, we are particularly interested in communications equipment, and not the economy as a whole. In many instances, people make all the difference. In addition to financial competitiveness, we consider the extent to which labor deployment and productivity in Finland differs from regional and global benchmarks. In this case, we are interested in the amount of labor required to operate a typical business in Finland and the likely returns on this human investment. What is the typical ratio of short-term and long-term assets to employee (employed in communications equipment operations)? What are typical capital-labor ratios? How different are these ratios to those in Europe in general and the world as a whole? What are the average sales and net profits per employee in Finland compared to regional benchmarks? The goal of this section is to assist managers in gauging the competitive performance of Finland at the global level for communications equipment. With the globalization of markets, greater foreign competition, and the reduction of entry barriers, it becomes all the more important to benchmark Finland against other countries on a worldwide basis. Doing so, however, is not an obvious task. This report generates international benchmarks and measures gaps that might be revealed from such an exercise. First, data is collected from companies across all regions of the world. For each of these firms, data are standardized into comparable categories (assets, liabilities, income and ratios), by country, region and on a worldwide basis. From there, we eliminate all currency effects by standardizing within each category. Global benchmarks are then compared to those estimated for communications equipment in Finland. Though we heavily rely on historical performance, the figures reported are not historical but are forecasts and projections for the coming fiscal year.
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Financial Indicators
3.1.1
11
Financial Returns and Gaps in Finland
The approach used in this report to evaluate operating performance for communications equipment in Finland is called "vertical analysis." For those unfamiliar with this type of analysis, frequently taught in graduate schools of business, the reader is recommended Jae K. Shim and Joel G. Siegel’s recent book titled Financial Management.1 In their discussion of financial statement analysis and ratios, Skim and Siegel (p. 42-43), describe common-size statement (vertical analysis) as follows: A common-size statement is one that shows each item in percentage terms. Preparation of common-size statements is known as vertical analysis, in which a material financial statement item is used as a base value and all other accounts on the financial statement are compared to it. In the balance sheet, for example, total assets equal 100 percent, and each individual asset is stated as a percentage of total assets. Similarly, total liabilities and stockholders’ equity are assigned a value of 100 percent and each liability or equity account is then stated as a percentage of total liabilities and stockholders’ equity, respectively. … For the income statement, a value of 100 percent is assigned to net sales, and all other revenues and expense accounts are related to it. It is possible to see at a glance how each dollar of sales is distributed among various costs, expenses, and profits. The authors suggest that vertical analyses involve industry-based comparisons. Such a comparison “allows you to answer the question, ‘How does a business fare in the industry?’ You must compare the company’s ratios to… industry norms.” (p. 43-44) This approach is extended to country competitiveness (in this case Finland) for a particular sector (in this case communications equipment). This involves calculating country, regional and global norms. This introduction will describe the seven-stage methodology used to perform this analysis. Each stage should be seen as a working assumption behind the numbers presented in later chapters. Stage 1. Industry Classification. This stage begins by classifying the company into an industry. For this, we have relied on a combination of the North American Industry Classification System (NAICS pronounced “Nakes”), a relatively new system for classifying business establishments, and the older Standard Industrial Classification (SIC) system. Adopted in 1997, NAICS codes are the new industry classification codes used by statistical agencies of the United States. NAICS was developed jointly by the U.S., Canada, and Mexico to provide comparability in statistics about business activity across North America. After 60 years of service, the outdated SIC system was retired on October 1, 2000, leaving only the NAICS codes for official use. The NAICS classification system adds some 350 new industries and represents a revision to over 60% of the previous SIC industries. Despite its official retirement, the SIC system is still commonly used (and often reported in firm’s financial statements). For most companies in the world, classification within either the new NAICS or older SIC systems is a rather straight forward exercise. For some, however, it can be problematic. This is true for several reasons. The first being that the SIC or NAICS classification systems are rather broad for many product and industry categories (a firm’s products or services may be only a minor aspect of the classification’s definition). The second is that some firms’ activities span multiple codes. Finally, it is possible that a firm is classified by one source using its SIC code, and by another using its NAICS code, and by a third using both. Furthermore, some sources do not report either code, but instead use qualitative statements of the firm’s activities. Nevertheless, if one wishes to pursue a vertical analysis, some classification needs to take place which selects a peer group. In making this classification, one can rely on a number of sources. In some countries, firms must “self” classify in official periodic reports (e.g. annular reports, 10Ks, etc.) to public authorities (such as the Securities and Exchange Commission). These reports are then open for public scrutiny (e.g. EDGAR filings). In other cases, commercial data vendors or private research firms provide SIC/NAICS codes for specific companies. These include: •
Bloomberg - www.bloomberg.com
•
Datastream (Thomson Financial) - www.datastream.com
1
Skim and Siegel (2000), Financial Management published by Barron’s Educational Series, Inc. (BARON’S BUSINESS LIBRARY Series), ISBN: 0-7641-1402-6. www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators •
12
Dun & Bradstreet - www.dnb.com
•
Hoovers - www.hoovers.com
•
HarrisInfoSource - www.HarrisInfo.com
•
InfoUSA - www.infousa.com
•
Investext (Thomson Financial) - www.investext.com
•
Kompass International Neuenschwander SA. – www.kompass.com
•
Moody's Investors Service - www.moodys.com
•
Primark (Thomson Financial) - www.primark.com
•
Profound (The Dialog Corporation – A Thomson Company) - www.profound.com
•
Reuters - www.reuters.com
•
Standard & Poor's - www.standardandpoors.com
It is interesting to note that commercial vendors often report different qualitative descriptions and industrial classifications from one to another. These descriptions and classifications may also be different from those reported by the firm itself. Anyone hoping to perform a benchmarking study, therefore, has to make a judgment call across these various sources in order to determine a reasonable classification. In this report, we have decided a metaanalytic process, by combining various sources (including linking a classification’s keywords to qualitative descriptions of the firm’s product line). In cases of inconsistency, the most recent or globally comparable available is chosen. Again, the overall goal is to classify firms, which either produce similar products, offer similar services, or are in the same stage of the value chain for a particular industrial classification. In the case of this report, the SIC code selected is: 366 which is defined as “communications equipment”. This classification should be seen as a working assumption. In order to obtain a more detailed discussion of this classification, the reader is referred to the Web sites developed by the U.S. Census Bureau: http://www.census.gov/epcd/www/naics.html. Basic definitions and descriptions are provided at: http://www.census.gov/epcd/www/drnaics.htm#q1. A full correspondence table between SIC and NAICS codes, and detailed definitions are given at http://www.census.gov/epcd/www/naicstab.htm. Stage 2. Firm-Level Data Collection. A global search was conducted across over 20,000 companies in over 40 major economies, including Finland, for those that report financials (balance sheet and income statements) and that are involved in communications equipment. It should be noted that the public-domain financials can be either historic or projections. It should also be noted that even historic figures can be modified in the future and often represent “estimates” of performance. Stage 3. Standardization. Once collected, public domain financial figures of firms identified in Stage 2 are standardize into comparable categories (assets, liabilities, and income). Again, these are limited to firms involved in some aspect of communications equipment (i.e. are members of the value chain). From there, we eliminate all currency effects by standardizing within each category (creating ratios). In order to maintain comparability over time and across countries, vertical analysis is used. In the case of a firm’s assets, we treat the total assets as equaling 100, irrespective of the value of the local currency. All other assets are then calculated as a percent of total assets. In this way, the structure of the firm’s assets can be easily interpreted and compared with international benchmarks. For liabilities, total liabilities and equity are indexed to equal to 100. For the income statement, total revenue is indexed to equal 100, and all other figures are calculated as a percent of these figures. Stage 4. Filtering. Not all the firms selected in Stage 2 or the ratios calculated in Stage 3 are used for the country, regional or global benchmarks, as a number of companies are purposely dropped from the analysis. This is justified by the “outlier” phenomenon that plagues such analysis. The problem lies in that any given company in the benchmarking pool may be facing some exceptional event or may be organized in an exceptional way so as to make its ratios vastly different from the norm. By including such firms, the global benchmarks can be overly skewed. In many countries, firms are organized into holding groups. These groups nominally have very few employees (e.g. 4
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Financial Indicators
13
to 25 employees), but have extremely large assets, liabilities, or revenues. As such, the inclusion or exclusion of firms having this form of management can affect the ratios and benchmarks reported. Likewise, some firms have no net sales, no assets, no liabilities, or ratios. Others have ratios that appear implausible for a normal or viable company. In order to not allow these firms to affect the global benchmarks, only those firms with reasonable financials have been chosen. Finally, in some countries, detailed financials are not available or are not comparable to either the company in question or the global norm (e.g. various forms of depreciation). In this case, only those which exist and are comparable are reported. The details, therefore, that comprise a given ratio or set of ratios may not be reported. This may lead to the addition of several ratios, not summing to the whole. Stage 5. Calculation of Global Norms. Once the filtering process has eliminated outliers, a final list of companies included is compiled. Based on this list, the ratios discussed in Stage 3 are calculated for every firm, and then averaged to create country, regional and global benchmarks. The world average is calculated using each country’s population as a weight. Stage 6. Projection of Deviations. The goal of this report is not only to estimate raw ratios or averages, but also to present the difference between Finland and projected global averages for that same ratio. Furthermore, it can be insightful to know the location of each ratio within the distribution of the countries represented in Stage 5. These deviations, in fact, can be seen as projections or likely scenarios for the future. This is often true for two reasons. First, while a company’s financials change from year to year, its ratios are often stable. This is especially true for the country, regional and global benchmarks which represent averages across companies. From a purely Bayesian sense, the difference between the company’s recent ratios and the benchmarks are a reasonable prior for future deviations. This is true, even if the entire industry is hit by an external or exogenous shock, such as an oil crisis or economic slowdown. In other words, we assume that the structure of the variance in the industry’s financials remains stable. Second, many of the data are based on preliminary reports that might be changed in future filings. As forecasts, therefore, the numbers derived from these are also forecasts of past and future performance (with associated uncertainties). The calculation of the difference between a country’s ratios and the global benchmarks is meant to yield roughly approximate forecasts, or "useful measures". Within Europe, the reliability of estimates varies from one country to another for those ratios given in tables that report national averages. This is true because reliable source statistics are not available for all countries in Europe. Countries with the highest reliability, or sample sizes after filtering in Stage 4, include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Norway, Sweden, Switzerland, and United Kingdom. Others are generally econometrically extrapolated using models that use country characteristics (e.g. income per capita) as independent variables (i.e. countries having similar economic structures are assumed to have similar operating ratios). Again, the forecasts are based on the assumption of relative stability. This assumption has proven extremely robust in previous applications of this methodology (i.e. today’s weather is a good predictor of tomorrow’s weather, but not the weather three years from now). The results reported should be viewed as those for a “proto-typical” firm operating in Finland whose primary activity is communications equipment. Stage 7. Projection of Ranks and Percentiles. Based on the calculation of deviations, relative ranks and percentiles are calculated across the firms used in the benchmarks. The percentile estimates the percent of a representative sample of countries in the world having values of the ratio lower than Finland. It is important to note that a percentile being high (or low) does not mean good (or bad) past, present or future financial performance. The reader must draw this conclusion on their own. The estimates provided were created to provide managerial insight, and not a recommendation with respect to particular investments within any country. We graphically report, for each part of the financial statement, the larger structural differences between Finland and the regional and global benchmarks, and provide a summary table of ranks and percentiles. These are estimates for firm which would be involved in communications equipment. A deviation from the global norm need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or perhaps signal a country's relative strength or weakness for the coming fiscal year.
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Financial Indicators
3.1.2
14
Labor Productivity Gaps in Finland
In the case of labor productivity measures, this report maintains comparability over time and across countries by using a common currency (the US dollar) and relates each measure to a “per employee basis”. Ratios are projected using raw financial statistics and, as ratios, are therefore comparable. Given a country’s human resource ratios, the resulting figures are benchmarked across regional and global averages. The seven stage approach given above is used in a similar manner. We then report, for each part of the financial statement, the larger labor productivity gaps that Finland has vis-à-vis the worldwide average (for communications equipment). Again, a gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firm’s relative incentive to invest locally. All figures are projections, so due caution is required.
3.1.3
Limitations and Extensions
Shim and Siegal (p. 60) stress that “while ratio analysis is an effective tool for assessing a company’s financial condition,” operating Finland or any other country, “its limitations must be recognized.” They find that (p. 59) “no single ratio or group of ratios is adequate for assessing all aspects of a company’s financial condition” operating in a particular country. The authors note the following limitations associated with ratio analyses which apply to the global benchmarking and vertical analysis presented here (p.60): •
Accounting standards or policies may limit useful comparisons across companies
•
Management accounting practices across companies and countries may not be performed in the same style
•
Ratios are static and do not reveal future trends
•
Ratios do not indicate the quality of the components used to calculate the ratios (i.e. ratios have ambiguous interpretations)
•
Reported ratios may not reflect real values
•
Companies may be highly diversified, limiting the comparability of their ratios to others
•
Industry averages or norms are approximate; finer industry definitions may be required for certain interpretations or comparisons
•
Financial statements and resulting ratios often mean different things to different people depending on their points of view or motivations.
Again, all figures reported here are estimates, so due caution is required. The above caveats, and the fact that statements made in this report are forward-looking, requires that this point be emphasized. A number of intervening factors can have material effect on the ratios and variances forecasted. These include changes in a company's management style, exchange rate volatility, changes in accounting standards, the lack of oversight or comparability in accounting standards, changes in economic conditions, changes in competition, changes in the global economy, changes in source data quality, and similar factors.
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Financial Indicators
3.2 3.2.1
FINANCIAL RETURNS RATIOS
IN
15
FINLAND: ASSET STRUCTURE
Overview
In this chapter we consider the asset structure of companies involved in communications equipment operating in Finland benchmarked against global averages. The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of assets is then presented for companies operating in Finland and the average global benchmarks (total assets = 100 percent). For ratios where there are large deviations between Finland and the benchmarks, graphics are provided (sometimes referred to as a financial “gap” analysis). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key vertical analysis asset ratios are highlighted across countries in the comparison group.
3.2.2
Assets – Definitions of Terms
The following definitions are provided for those less familiar with the asset-side of financial statement analysis. As this chapter deals with the vertical analysis and global benchmarking of assets, only definitions covering certain terms used in this chapter’s tables and graphs are provided here . The glossary below reflects commonly accepted definitions across various countries and official sources. •
Accumulated Depreciation - Buildings. Accumulated depreciation is commonly understood as a contra asset account used to report the accumulation of periodic credits to reflect the use of the estimated service life of a fixed asset. Buildings are fixed assets which represent the acquisition and improvement costs of permanent structures owned or held by the company. Such structures typically include office buildings, storage quarters, or other facilities and also associated items such as loading docks, heating and airconditioning equipment, refrigeration equipment, and all other property permanently attached to or forming an integral part of the structure. However, it generally does not include furniture, fixtures, or other equipment which are not an integral part of the building.
•
Accumulated Depreciation -Machinery & Equipment. Accumulated depreciation of machinery and equipment is commonly understood to be contra asset account used to report the accumulation of periodic credits to reflect the use of the estimated service life of machinery and equipment.
•
Buildings. Buildings are defined as fixed assets which represent the acquisition and improvement costs of permanent structures owned or held by the company. Such structures include office buildings, storage quarters, or other facilities and also associated items such as loading docks, heating and air-conditioning equipment, refrigeration equipment, and all other property permanently attached to or forming an integral part of the structure. However, it does not include furniture, fixtures, or other equipment which are not an integral part of the building.
•
Cash. Cash is typically defined as money on hand, on deposit with chartered bank, or held in the form of eligible securities.
•
Current Assets. Current assets are generally defined to be resources which are available, or can readily be made available, to meet the cost of operations or to pay current liabilities.
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16
•
Deferred Charges. Deferred charges are generally understood to represent the amount which has been paid for services already received by the company but has not been charged to operations.
•
Finished Goods. Finished goods generally comprise the ready-for-sale inventory.
•
Intangible Other Assets. Intangible assets are generally understood to be nonphysical assets such as legal rights (patents and trademarks) recorded at their historical cost then reduced by systematic amortization.
•
Investments in Unconsolidated Subsidiaries. Investments in unconsolidated subsidiaries are typically defined as investments for the purpose of generating revenue in subsidiaries whose financial statements are not combined with the company's.
•
land. Land is generally considered to be a fixed asset. If land is purchased, its capitalized value typically includes the purchase price plus costs such as legal fees, filling and excavation costs which are incurred to put the land in condition for its intended use. If land is acquired by gift, its capitalized value typically reflects its appraised value at the time of acquisition. Land typically does not include depletable resources.
•
long Term Receivables. Long-term receivables are commonly defined as amounts due within a period exceeding one year from private persons, businesses, agencies, funds, or governmental units which are expected to be collected in the form of moneys, goods, and/or services.
•
Machinery & Equipment. Machinery and equipment is commonly defined as a fixed asset classification which typically includes tangible property (other than land, buildings, and improvements other than buildings) with a life of more than one year. Such assets typically include office equipment, furniture, machine tools, and motor vehicles. Equipment may be attached to a structure for purposes of securing the item, but unless it is permanently attached to an integral part of the building or structure, it will generally be classified as equipment and not buildings. Equipment is generally defined as tangible property other than land, buildings, or improvements other than buildings, which is used in operations. Examples include machinery, tools, trucks, cars, furniture, and furnishings.
•
Prepaid Expenses. Prepaid expenses are typically defined as those supplies and/or services (not inventory) acquired or purchased but not consumed or used at the end of the accounting period.
•
Progress Payments. Progress payments are commonly defined as periodic payments to a supplier, contractor, or subcontractor for work as it is completed as desired, in order to reduce working capital requirements.
•
Property Plant and Equipment - Gross. Gross property, plant and equipment generally consists of the gross book value (rather than the more commonly-used measures of fixed capital stocks in current or real value), of all commercial buildings, associated land and equipment used therein that are owned by the company and that are either used or operated by the company or leased or rented to others.
•
Property Plant and Equipment - Net. Net PP&E equals the original cost of property, plant, and equipment (PP&E), less accumulated depreciation, depletion and amortization (DD&A).
•
Raw Materials. Raw materials are materials which will be converted by a manufacturer into a finished product.
•
Receivables (Net). Net receivables are defined as the net amount due to the company from private persons, businesses, agencies, funds, or governmental units which is expected to be collected in the form of moneys, goods, and/or services.
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Financial Indicators
17
•
Short Term Investments. Short-term investments are investments which can be typically liquidated in less than one year.
•
Tangible Other Assets. Other tangible assets are commonly understood to be something substantial or real that is capable of being given an actual or approximate value (market or estimated), not classified elsewhere.
•
Total Assets. Total assets are defined as the financial representation of economic resources, the beneficial interest in which is legally or equitably secured to a particular organization as a result of a past transaction or event.
•
Total Inventories. Total inventories are defined as the total amount of goods on hand.
•
Work in Process. Work in progress includes goods which have been started but are not yet ready for sale.
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Financial Indicators
3.2.3
18
Asset Structure: Outlook
Using the methodology described in the introduction, the following table summarizes asset structure benchmarks for firms involved in communications equipment in Finland. To allow comparable benchmarking, a common index of Total Assets = 100 is used. All figures are current-year projections for companies operating in Finland based on latest financial results available. Asset Structure Finland Europe World Avg. _________________________________________________________________________________________________________
Cash & Short Term Investments Cash Short Term Investments Receivables (Net) Total Inventories Raw Materials Work in Process Finished Goods Progress Payments & Other Prepaid Expenses Other Current Assets Current Assets - Total Long Term Receivables Investments in Unconsolidated Subsidiaries Other Investments Property Plant and Equipment - Net Property Plant and Equipment - Gross Land Buildings Machinery & Equipment Other Property Plant & Equipment Accumulated Depreciation - Total Accumulated Depreciation - Buildings Accumulated Depreciation -Machinery & Equipment Accumulated Depreciation - Other Prop & Equip Other Assets Deferred Charges Tangible Other Assets Intangible Other Assets Total Assets
15.27 9.34 8.32 24.71 16.51 7.09 2.15 6.74 0.21 1.32 3.94 60.87 0.15 3.56 2.42 23.09 40.32 1.04 10.35 25.48 1.68 18.11 2.23 16.04 0.19 10.87 1.41 0.13 9.24 100.00
14.09 8.88 7.61 24.96 16.36 4.77 3.78 6.62 0.80 0.93 1.30 57.05 0.56 2.23 3.35 26.28 54.79 2.62 13.47 33.51 8.64 30.95 4.73 24.06 5.54 6.04 0.50 0.36 4.03 100.00
12.80 7.61 5.90 23.52 17.08 5.48 2.92 5.87 1.01 1.35 1.33 55.52 0.44 2.64 2.25 27.55 48.25 1.52 9.73 29.92 7.84 22.80 2.80 17.47 2.59 4.99 0.91 0.37 2.35 100.00
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
3.2.4
19
Large Variances: Assets
The following graphics summarize for communications equipment the large asset structure gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.
Gap: Cash & Short Term Investments 20 15
15.27
14.09
12.8
10 5
2.47
0 Finland
Europe
World Average
Gap
Gap: Short Term Investments 10
8.32
8
7.61 5.9
6 4
2.42
2 0 Finland
Europe
World Average
Gap
Gap: Other Current Assets 4
3.94 2.61
3 2
1.3
1.33
1 0 Finland
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Europe
World Average
Gap
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Financial Indicators
20
Gap: Current Assets - Total 80 60
60.87
57.05
55.52
40 20
5.35
0 Finland
Europe
World Average
Gap
Gap: Property Plant and Equipment - Net 30
23.09
26.28
27.55
20 10 0
-4.46
-10 Finland
Europe
World Average
Gap
Gap: Property Plant and Equipment - Gross 54.79
60 40
40.32
48.25
20 0
-7.93
-20 Finland
Europe
World Average
Gap
Gap: Machinery & Equipment 40 30
33.51 25.48
29.92
20 10 0
-4.44
-10 Finland
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Europe
World Average
Gap
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Financial Indicators
21
Gap: Other Property Plant & Equipment 8.64
10 5
7.84
1.68
0 -5
-6.16
-10 Finland
Europe
World Average
Gap
Gap: Accumulated Depreciation - Total 40
30.95
30 20
22.8
18.11
10 0
-4.69
-10 Finland
Europe
World Average
Gap
Gap: Other Assets 12
10.87
10 8
6.04
6
4.99
5.88
4 2 0 Finland
Europe
World Average
Gap
Gap: Intangible Other Assets 10
9.24
8
6.89
6
4.03
4
2.35
2 0 Finland
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Europe
World Average
Gap
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Financial Indicators
3.2.5
22
Key Percentiles and Rankings
We now consider the distribution of asset ratios for communications equipment using ranks and percentiles. What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of asset structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a few key vertical asset ratios are highlighted in additional tables. Asset Structure
Finland
Rank of Total
Percentile
15.27 9.34 8.32 24.71 16.51 7.09 2.15 6.74 0.21 1.32 3.94 60.87 0.15 3.56 2.42 23.09 40.32 1.04 10.35 25.48 1.68 18.11 2.23 16.04 0.19 10.87 1.41 0.13 9.24 100.00
20 of 53 22 of 48 22 of 46 23 of 53 25 of 53 15 of 47 33 of 47 18 of 47 25 of 46 11 of 37 3 of 53 26 of 53 32 of 36 14 of 48 13 of 46 38 of 53 41 of 48 30 of 41 24 of 48 40 of 48 48 of 48 40 of 47 28 of 43 33 of 43 42 of 42 10 of 53 10 of 37 28 of 33 9 of 51
62.26 54.17 52.17 56.60 52.83 68.09 29.79 61.70 45.65 70.27 94.34 50.94 11.11 70.83 71.74 28.30 14.58 26.83 50.00 16.67 0.00 14.89 34.88 23.26 0.00 81.13 72.97 15.15 82.35
_________________________________________________________________________________________________________
Cash & Short Term Investments Cash Short Term Investments Receivables (Net) Total Inventories Raw Materials Work in Process Finished Goods Progress Payments & Other Prepaid Expenses Other Current Assets Current Assets - Total Long Term Receivables Investments in Unconsolidated Subsidiaries Other Investments Property Plant and Equipment - Net Property Plant and Equipment - Gross Land Buildings Machinery & Equipment Other Property Plant & Equipment Accumulated Depreciation - Total Accumulated Depreciation - Buildings Accumulated Depreciation -Machinery & Equipment Accumulated Depreciation - Other Prop & Equip Other Assets Deferred Charges Tangible Other Assets Intangible Other Assets Total Assets
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
23
Cash & Short Term Investments Countries
Value (total assets = 100)
Rank
Percentile
32.55 32.28 25.77 25.57 22.39 22.04 21.94 21.17 20.95 20.91 20.75 20.70 20.55 20.45 18.50 17.90 16.34 16.03 15.53 15.27 15.02 14.73 13.51 13.43 13.23 12.94 12.91 12.74 12.59 12.28 12.06 11.88 11.61 10.49 10.07 9.68 9.62 9.44 8.44 8.29 7.94 7.72 4.69 2.99 1.16
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 29 30 31 32 34 35 38 40 41 42 44 45 46 47 48 50 51 52
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 35.85 33.96 28.30 24.53 22.64 20.75 16.98 15.09 13.21 11.32 9.43 5.66 3.77 1.89
Region
_________________________________________________________________________________________________________
Israel Ireland Norway Portugal New Zealand Brazil Hong Kong USA China Canada Spain Switzerland Austria Singapore Japan Luxembourg South Korea Australia the United Kingdom Finland Malaysia Russia Thailand Taiwan Hungary Turkey Mexico Philippines Belgium France South Africa Sweden Italy Germany Indonesia Pakistan Greece Netherlands Denmark Czech Republic India Argentina Chile Poland Peru
the Middle East Europe Europe Europe Oceana Latin America Asia North America Asia North America Europe Europe Europe Asia Asia Europe Asia Oceana Europe Europe Asia Europe Asia Asia Europe the Middle East Latin America Asia Europe Europe Africa Europe Europe Europe Asia the Middle East Europe Europe Europe Europe Asia Latin America Latin America Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
24
Cash & Short Term Investments (Communications Equipment) Countries in Europe
Value (total assets = 100)
Rank
Percentile
32.28 25.77 25.57 24.48 21.39 21.04 20.75 20.70 20.55 20.36 19.85 19.85 19.83 19.48 19.32 19.13 17.90 15.76 15.53 15.27 15.04 15.00 14.73 14.69 13.23 12.59 12.30 12.28 11.90 11.88 11.71 11.61 11.31 11.29 11.14 10.97 10.58 10.49 9.62 9.44 8.91 8.80 8.44 8.29 7.87 7.87 2.99 2.69 2.59 2.58 1.01
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Ireland Norway Portugal Cyprus Iceland Faroe Islands Spain Switzerland Austria San Marino Guernsey Jersey Monaco Slovenia Liechtenstein Andorra Luxembourg Estonia the United Kingdom Finland Belarus Slovakia Russia Lithuania Hungary Belgium Romania France Ukraine Sweden Vatican City Italy Gibraltar Bosnia & Herzegovina Georgia Macedonia Serbia & Montenegro Germany Greece Netherlands Malta Isle of Man Denmark Czech Republic Latvia Croatia Poland Moldova Kazakhstan Bulgaria Albania
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
25
Receivables (Net) Countries
Value (total assets = 100)
Rank
Percentile
39.39 39.28 35.37 35.35 34.24 33.33 32.44 30.58 29.49 29.40 28.04 27.64 26.98 26.72 26.52 26.52 26.21 26.07 25.96 25.74 25.60 24.71 24.70 24.36 24.35 24.35 24.32 23.86 22.75 22.63 21.16 20.32 20.27 20.08 18.74 18.58 18.31 17.30 17.30 16.48 16.45 16.25 14.05 13.68 12.26
1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 38 39 41 42 43 44 46 48 49 51
98.11 96.23 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 22.64 20.75 18.87 16.98 13.21 9.43 7.55 3.77
Region
_________________________________________________________________________________________________________
Turkey Mexico Greece Poland Netherlands France South Africa India Denmark Italy the United Kingdom Belgium Norway Portugal Japan Czech Republic Sweden Pakistan Germany Malaysia Spain Finland Argentina China New Zealand Singapore Austria Hong Kong Canada Australia Thailand South Korea USA Chile Israel Ireland Russia Philippines Taiwan Brazil Hungary Switzerland Luxembourg Indonesia Peru
the Middle East Latin America Europe Europe Europe Europe Africa Asia Europe Europe Europe Europe Europe Europe Asia Europe Europe the Middle East Europe Asia Europe Europe Latin America Asia Oceana Asia Europe Asia North America Oceana Asia Asia North America Latin America the Middle East Europe Europe Asia Asia Latin America Europe Europe Europe Asia Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
26
Receivables (Net) (Communications Equipment) Countries in Europe
Value (total assets = 100)
Rank
Percentile
37.42 35.37 35.35 34.34 34.24 33.38 33.33 32.78 32.35 32.20 31.79 30.59 30.53 29.64 29.49 29.40 28.04 27.64 26.98 26.72 26.52 26.21 25.96 25.60 25.58 25.17 25.16 24.71 24.32 24.09 24.04 23.61 23.49 23.49 22.88 22.77 20.48 19.59 18.70 18.65 18.58 18.31 18.27 16.45 16.25 15.16 14.79 14.07 14.05 13.85 10.71
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Romania Greece Poland Bosnia & Herzegovina Netherlands Macedonia France Malta Isle of Man Serbia & Montenegro Moldova Kazakhstan Bulgaria Vatican City Denmark Italy the United Kingdom Belgium Norway Portugal Czech Republic Sweden Germany Spain Cyprus Latvia Croatia Finland Austria San Marino Slovenia Monaco Guernsey Jersey Faroe Islands Andorra Iceland Estonia Belarus Slovakia Ireland Russia Lithuania Hungary Switzerland Liechtenstein Ukraine Gibraltar Luxembourg Georgia Albania
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
27
Total Inventories Countries
Value (total assets = 100)
Rank
Percentile
37.32 26.55 25.46 25.35 24.27 24.12 23.64 23.62 23.22 22.44 22.02 21.28 21.22 20.98 19.97 19.92 19.69 19.54 18.45 18.03 17.93 16.91 16.69 16.51 16.41 16.36 16.07 15.81 15.49 14.67 13.98 13.93 13.92 13.80 13.70 13.36 13.12 12.55 12.31 11.94 11.27 10.21 10.13 9.94 7.86
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 20 21 22 23 24 25 26 27 28 29 31 32 33 34 35 36 37 39 40 43 44 45 46 47 48 49 51
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 41.51 39.62 37.74 35.85 33.96 32.08 30.19 26.42 24.53 18.87 16.98 15.09 13.21 11.32 9.43 7.55 3.77
Region
_________________________________________________________________________________________________________
Pakistan Denmark Sweden Czech Republic Canada Italy Norway Argentina South Africa Germany Chile India Peru the United Kingdom Turkey Mexico Australia France Netherlands USA Greece China Austria Finland Belgium Thailand Portugal Spain Brazil Taiwan New Zealand Singapore South Korea Switzerland Hong Kong Malaysia Japan Russia Poland Luxembourg Hungary Israel Ireland Philippines Indonesia
the Middle East Europe Europe Europe North America Europe Europe Latin America Africa Europe Latin America Asia Latin America Europe the Middle East Latin America Oceana Europe Europe North America Europe Asia Europe Europe Europe Asia Europe Europe Latin America Asia Oceana Asia Asia Europe Asia Asia Asia Europe Europe Europe Europe the Middle East Europe Asia Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
28
Total Inventories (Communications Equipment) Countries in Europe
Value (total assets = 100)
Rank
Percentile
26.55 25.46 25.35 24.31 24.12 24.06 24.05 23.64 22.44 20.98 19.54 18.98 18.52 18.45 18.21 17.93 17.42 16.93 16.69 16.62 16.53 16.51 16.41 16.40 16.33 16.12 16.12 16.07 15.81 15.38 14.84 13.80 13.51 13.42 13.13 13.03 12.88 12.81 12.78 12.55 12.52 12.31 11.94 11.27 11.07 10.65 10.63 10.14 10.13 9.64 9.49
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Denmark Sweden Czech Republic Vatican City Italy Latvia Croatia Norway Germany the United Kingdom France Romania Albania Netherlands Iceland Greece Bosnia & Herzegovina Macedonia Austria Malta San Marino Finland Belgium Isle of Man Serbia & Montenegro Guernsey Jersey Portugal Spain Cyprus Slovenia Switzerland Monaco Estonia Faroe Islands Andorra Liechtenstein Belarus Slovakia Russia Lithuania Poland Luxembourg Hungary Moldova Kazakhstan Bulgaria Ukraine Ireland Gibraltar Georgia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
29
Current Assets - Total Countries
Value (total assets = 100)
Rank
Percentile
77.57 77.36 76.74 74.90 70.02 68.42 68.22 67.39 67.35 66.66 66.45 66.04 64.83 64.61 64.28 64.15 63.72 63.62 63.16 62.40 62.37 62.20 61.58 60.89 60.87 60.50 60.22 59.67 59.07 56.68 56.35 54.69 54.51 52.90 52.16 51.77 51.18 49.34 48.45 47.00 45.75 42.23 41.67 36.80 32.95
1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 42 43 45 46 48 50
98.11 96.23 94.34 92.45 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 20.75 18.87 15.09 13.21 9.43 5.66
Region
_________________________________________________________________________________________________________
Turkey Mexico Norway Pakistan Canada Portugal South Africa Denmark France the United Kingdom Italy Sweden Greece China Netherlands Israel USA Ireland Germany Spain Austria India Japan New Zealand Finland Czech Republic Singapore Hong Kong Australia Belgium Argentina Brazil Malaysia Switzerland South Korea Thailand Poland Taiwan Chile Russia Luxembourg Hungary Philippines Peru Indonesia
the Middle East Latin America Europe the Middle East North America Europe Africa Europe Europe Europe Europe Europe Europe Asia Europe the Middle East North America Europe Europe Europe Europe Asia Asia Oceana Europe Europe Asia Asia Oceana Europe Latin America Latin America Asia Europe Asia Asia Europe Asia Latin America Europe Europe Europe Asia Latin America Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
30
Current Assets - Total (Communications Equipment) Countries in Europe
Value (total assets = 100)
Rank
Percentile
76.74 73.71 68.42 67.64 67.39 67.35 66.99 66.66 66.45 66.04 65.74 65.49 64.83 64.37 64.28 63.62 63.41 63.16 62.40 62.37 61.78 60.87 60.50 60.23 60.23 60.09 59.30 58.58 58.40 57.42 57.40 57.22 56.68 56.32 52.90 51.18 50.28 49.36 47.99 47.88 47.00 46.89 46.02 45.75 44.28 44.20 42.23 37.98 36.11 35.55 32.13
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Norway Romania Portugal Bosnia & Herzegovina Denmark France Vatican City the United Kingdom Italy Sweden Macedonia Cyprus Greece Iceland Netherlands Ireland Serbia & Montenegro Germany Spain Austria San Marino Finland Czech Republic Guernsey Jersey Malta Isle of Man Slovenia Monaco Latvia Croatia Faroe Islands Belgium Andorra Switzerland Poland Estonia Liechtenstein Belarus Slovakia Russia Lithuania Moldova Luxembourg Kazakhstan Bulgaria Hungary Ukraine Gibraltar Georgia Albania
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
31
Property Plant and Equipment - Net Countries
Value (total assets = 100)
Rank
Percentile
50.76 45.81 43.37 40.66 40.61 40.14 36.55 35.22 34.99 34.53 33.84 32.90 32.59 32.27 32.00 31.81 30.45 30.00 29.65 27.91 27.80 27.61 27.34 27.03 26.64 26.59 25.87 25.40 24.51 23.63 23.15 23.09 23.00 21.35 21.34 21.09 20.67 19.58 19.52 16.98 16.58 15.00 14.99 12.02 11.92
1 2 3 5 6 7 9 10 11 12 14 15 16 17 18 19 21 23 24 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 45 46 48 49 50 51 52 53
98.11 96.23 94.34 90.57 88.68 86.79 83.02 81.13 79.25 77.36 73.58 71.70 69.81 67.92 66.04 64.15 60.38 56.60 54.72 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 15.09 13.21 9.43 7.55 5.66 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Philippines Poland Chile Malaysia Thailand Indonesia Taiwan Brazil Czech Republic New Zealand Hong Kong South Korea Argentina Switzerland Singapore Spain India Portugal Russia Luxembourg Belgium Japan Austria Sweden Hungary Peru Denmark the United Kingdom China Pakistan Germany Finland Italy Australia South Africa USA Canada Turkey Mexico Netherlands France Greece Norway Israel Ireland
Asia Europe Latin America Asia Asia Asia Asia Latin America Europe Oceana Asia Asia Latin America Europe Asia Europe Asia Europe Europe Europe Europe Asia Europe Europe Europe Latin America Europe Europe Asia the Middle East Europe Europe Europe Oceana Africa North America North America the Middle East Latin America Europe Europe Europe Europe the Middle East Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
32
Property Plant and Equipment - Net (Communications Equipment) Countries in Europe
Value (total assets = 100)
Rank
Percentile
45.81 41.19 39.64 39.56 34.99 33.21 33.19 32.45 32.27 31.81 31.72 31.03 30.27 30.20 30.12 30.00 29.92 29.86 29.65 29.58 28.71 27.91 27.80 27.34 27.08 27.03 26.64 26.41 26.41 25.87 25.40 23.96 23.21 23.18 23.15 23.09 23.00 22.78 22.43 21.31 18.60 17.07 16.98 16.59 16.58 16.00 15.00 14.99 13.90 13.72 11.92
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Poland Moldova Kazakhstan Bulgaria Czech Republic Latvia Croatia Faroe Islands Switzerland Spain Estonia Monaco Belarus Slovakia Liechtenstein Portugal Andorra Slovenia Russia Lithuania Cyprus Luxembourg Belgium Austria San Marino Sweden Hungary Guernsey Jersey Denmark the United Kingdom Ukraine Albania Vatican City Germany Finland Italy Gibraltar Georgia Iceland Romania Bosnia & Herzegovina Netherlands Macedonia France Serbia & Montenegro Greece Norway Malta Isle of Man Ireland
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
33
Accumulated Depreciation - Total Countries
Value (total assets = 100)
Rank
Percentile
99.26 59.35 49.90 47.79 46.04 44.54 42.50 39.58 38.15 33.04 31.40 30.72 30.64 30.17 28.01 27.97 27.53 27.20 27.16 26.89 26.62 26.35 25.24 24.43 24.03 23.66 23.18 22.68 20.63 20.29 19.90 19.76 18.11 15.01 14.86 13.23 13.12 11.94 8.42 6.58
1 2 3 4 5 6 7 8 9 10 12 13 14 15 18 19 21 22 23 24 25 26 29 30 31 32 33 34 36 37 38 39 40 41 42 43 44 45 46 47
97.87 95.74 93.62 91.49 89.36 87.23 85.11 82.98 80.85 78.72 74.47 72.34 70.21 68.09 61.70 59.57 55.32 53.19 51.06 48.94 46.81 44.68 38.30 36.17 34.04 31.91 29.79 27.66 23.40 21.28 19.15 17.02 14.89 12.77 10.64 8.51 6.38 4.26 2.13 0.00
Region
_________________________________________________________________________________________________________
Portugal Spain Austria Chile Germany Japan Denmark Brazil Philippines Thailand Switzerland Turkey Mexico Indonesia South Korea Italy the United Kingdom India Luxembourg Sweden France Malaysia Russia Singapore USA New Zealand Hong Kong Hungary Canada Australia Belgium Netherlands Finland South Africa China Israel Ireland Taiwan Greece Norway
Europe Europe Europe Latin America Europe Asia Europe Latin America Asia Asia Europe the Middle East Latin America Asia Asia Europe Europe Asia Europe Europe Europe Asia Europe Asia North America Oceana Asia Europe North America Oceana Europe Europe Europe Africa Asia the Middle East Europe Asia Europe Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
34
Accumulated Depreciation - Total (Communications Equipment) Countries in Europe
Value (total assets = 100)
Rank
Percentile
99.26 95.02 59.35 55.72 49.90 49.43 48.19 48.19 46.04 42.50 31.40 29.30 29.19 28.19 27.97 27.53 27.16 27.01 26.89 26.79 26.62 26.03 25.78 25.72 25.24 25.19 25.11 24.28 23.69 22.85 22.68 22.23 20.40 19.90 19.76 19.39 19.09 18.11 13.12 8.42 7.81 7.70 6.58
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43
97.67 95.35 93.02 90.70 88.37 86.05 83.72 81.40 79.07 76.74 74.42 72.09 69.77 67.44 65.12 62.79 60.47 58.14 55.81 53.49 51.16 48.84 46.51 44.19 41.86 39.53 37.21 34.88 32.56 30.23 27.91 25.58 23.26 20.93 18.60 16.28 13.95 11.63 9.30 6.98 4.65 2.33 0.00
_________________________________________________________________________________________________________
Portugal Cyprus Spain Slovenia Austria San Marino Guernsey Jersey Germany Denmark Switzerland Liechtenstein Romania Vatican City Italy the United Kingdom Luxembourg Estonia Sweden Bosnia & Herzegovina France Macedonia Belarus Slovakia Russia Lithuania Serbia & Montenegro Iceland Monaco Andorra Hungary Faroe Islands Ukraine Belgium Netherlands Gibraltar Georgia Finland Ireland Greece Malta Isle of Man Norway
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
35
Intangible Other Assets Countries
Value (total assets = 100)
Rank
Percentile
18.15 14.06 13.62 13.50 11.81 11.68 10.01 9.71 9.24 8.23 7.44 6.52 6.13 4.92 4.50 4.35 4.15 3.89 3.59 3.05 1.94 1.89 1.80 1.64 1.62 1.61 1.46 1.42 1.00 0.71 0.71 0.69 0.66 0.64 0.64 0.64 0.63 0.32 0.11 0.05 0.05 0.03 0.03
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 32 33 34 36 37 38 39 42 44 45 46 47 49
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 29.41 27.45 25.49 23.53 17.65 13.73 11.76 9.80 7.84 3.92
Region
_________________________________________________________________________________________________________
Australia Belgium USA Switzerland France Luxembourg Netherlands Germany Finland Canada Italy Norway the United Kingdom Spain Sweden Denmark Chile Austria Greece South Africa Poland China South Korea India Russia Malaysia Hungary Japan Singapore Turkey Mexico Czech Republic Thailand New Zealand Argentina Taiwan Hong Kong Peru Brazil Israel Ireland Philippines Indonesia
Oceana Europe North America Europe Europe Europe Europe Europe Europe North America Europe Europe Europe Europe Europe Europe Latin America Europe Europe Africa Europe Asia Asia Asia Europe Asia Europe Asia Asia the Middle East Latin America Europe Asia Oceana Latin America Asia Asia Latin America Latin America the Middle East Europe Asia Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
36
Intangible Other Assets (Communications Equipment) Countries in Europe
Value (total assets = 100)
Rank
Percentile
14.06 13.76 13.50 12.60 11.81 11.68 10.01 9.71 9.24 7.50 7.44 6.52 6.13 4.92 4.62 4.50 4.35 3.89 3.85 3.75 3.75 3.59 3.33 3.29 1.94 1.74 1.74 1.68 1.68 1.66 1.65 1.62 1.62 1.46 1.31 1.25 1.23 0.97 0.94 0.69 0.67 0.65 0.65 0.62 0.60 0.60 0.58 0.28 0.05
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49
97.96 95.92 93.88 91.84 89.80 87.76 85.71 83.67 81.63 79.59 77.55 75.51 73.47 71.43 69.39 67.35 65.31 63.27 61.22 59.18 57.14 55.10 53.06 51.02 48.98 46.94 44.90 42.86 40.82 38.78 36.73 34.69 32.65 30.61 28.57 26.53 24.49 22.45 20.41 18.37 16.33 14.29 12.24 10.20 8.16 6.12 4.08 2.04 0.00
_________________________________________________________________________________________________________
Belgium Iceland Switzerland Liechtenstein France Luxembourg Netherlands Germany Finland Vatican City Italy Norway the United Kingdom Spain Slovenia Sweden Denmark Austria San Marino Jersey Guernsey Greece Malta Isle of Man Poland Moldova Estonia Kazakhstan Bulgaria Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Monaco Andorra Czech Republic Romania Latvia Croatia Bosnia & Herzegovina Faroe Islands Macedonia Serbia & Montenegro Albania Ireland
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.3 3.3.1
FINANCIAL RETURNS RATIOS
IN
37
FINLAND: LIABILITY STRUCTURE
Overview
In this chapter we consider the liability structure of firms operating in Finland benchmarked against global averages. The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of liabilities and shareholder equity is then presented for the proto-typical firm operating in Finland and the average global benchmarks (sometimes referred to as a financial “gap” analysis). The figure reflect firms involved in communications equipment in Finland. For ratios where there are large deviations between Finland and the benchmarks, graphics are provided (total liabilities and equity = 100 percent). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key vertical analysis liability ratios are highlighted.
3.3.2
Liabilities and Equity – Definitions of Terms
The following definitions are provided for those less familiar with the liability-side of financial statement analysis. As this chapter deals with the vertical analysis and global benchmarking of liabilities and equity, only definitions covering certain terms used in this chapter’s tables and graphs are provided here . The glossary below reflects commonly accepted definitions across various countries and official sources. •
Accounts Payable. Accounts payable are defined as amounts owed on open account to private persons or organizations for goods or services received.
•
Accrued Payroll. Accrued payroll is defined as the cost of payroll that has been incurred but has not yet been paid. Payroll is typically defined as comprising records detailing the salaries, wages, allowances and deductions for each employee for a specific period of time.
•
Capital Surplus. Capital surplus is commonly defined as an amount of equity which is directly contributed capital in excess of the par value.
•
Common Equity. Common equity is defined to equal the company's net worth. It typically comprises capital stock, capital surplus, retained earnings, and, in some cases, net worth reserves. Common equity is the portion of total net worth belonging to the common stockholders. Synonyms which are often used for common equity are “common stock” and “net worth”.
•
Common Stock. Common stock is defined as the securities which represent the company's ownership interest. Common stockholders typically assume greater risk than preferred stockholders; although common stockholders maintain greater control and generally greater dividends and capital appreciation. Common stock can be used interchangeably with the term capital stock when the company has no preferred stock.
•
Current Liabilities - Total. Total current liabilities are defined as the total amount of obligations which would require the use of current assets or other current liabilities to pay.
•
Current Portion of Long Term Debt. The current proportion of long term debt is typically defined as debt which is payable in more than one year.
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©2007 Icon Group International, Inc.
Financial Indicators
38
•
Deferred Taxes. Deferred taxes are compulsory charges from a previous accounting period which are yet unpaid.
•
Deferred Taxes - Credit. Deferred tax credits are defined as credits against compulsory charges from a previous accounting period which are yet unpaid.
•
Income Taxes Payable. Income taxes payable are understood to mean taxes which are levied by state, federal, and local governments on the company's reported accounting profit. Income taxes payable are those which are due in the current accounting period.
•
Long Term Debt. Long-term debt is defined to be due in a period exceeding one year or one operating cycle, whichever is longer. Long-term debt can have an extended repayment period such as a many-year mortgage on land and buildings, or debt that's intended to be permanent such as bonds issued to investors.
•
Long Term Debt Excluding Capitalized Leases. Long term debt excluding capitalized leases is defined as debt which is typically due in a period exceeding one year or one operating cycle, whichever is longer, less capitalized leases (see Long Term Debt for exceptions). Capital leases are generally recorded as assets with liability at the current value of the lease payment.
•
Minority Interest. Minority interest is the proportional share of the minority ownership's interest (less than 50 percent) in the earnings or losses.
•
Non-Equity Reserves. Non-equity reserves are the amount set aside for losses or liabilities which are certain to arise but cannot be quantified with certainty, and are not part of the firm’s equity.
•
Retained Earnings. proprietary funds.
•
Shareholders Equity. Shareholders equity is commonly defined to be the amount of total equity reserved for common and preferred shareholders.
•
Short Term Debt. Short term debt is generally defined as debt payable within one year.
•
Total Liabilities. Total liabilities are generally defined to include all the claims against a corporation. Liabilities include accounts and wages and salaries payable, dividends declared payable, accrued taxes payable, fixed or long-term liabilities such as mortgage bonds, debentures, and bank loans.
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Retained earnings is an equity account reflecting the accumulated earnings of
©2007 Icon Group International, Inc.
Financial Indicators
3.3.3
39
Liability Structure: Outlook
Using the methodology described in the introduction, the following table summarizes liability and equity structure benchmarks for firms involved in communications equipment in Finland. To allow comparable benchmarking, a common index of Total Liabilities & Shareholders Equity = 100 is used. All figures are current-year projections for companies operating in Finland based on latest financial results available. Liability Structure Finland Europe World Avg. _________________________________________________________________________________________________________
Accounts Payable Short Term Debt & Current Portion of Long Term Debt Accrued Payroll Income Taxes Payable Other Current Liabilities Current Liabilities - Total Long Term Debt Long Term Debt Excluding Capitalized Leases Provision For Risks and Charges Deferred Taxes Deferred Taxes - Credit Deferred Taxes - Debit Other Liabilities Total Liabilities Non-Equity Reserves Minority Interest Common Equity Common Stock Capital Surplus Revaluation Reserves Other Appropriated Reserves Unappropriated Reserves Retained Earnings Unrealized Foreign Exchange Gain/Loss Treasury Stock Total Liabilities & Shareholders Equity
15.29 8.04 3.88 0.73 11.16 35.11 14.25 14.25 0.10 0.56 0.44 1.40 0.05 50.03 1.88 0.52 47.57 6.09 12.80 0.07 7.91 0.01 25.66 0.40 0.38 100.00
11.37 10.28 2.20 1.38 10.34 31.87 9.07 8.81 3.65 0.47 0.98 0.78 1.02 45.21 0.26 1.42 46.68 15.05 15.77 2.57 8.33 4.36 11.67 0.20 1.90 100.00
14.50 11.36 1.03 1.01 9.95 34.95 7.63 7.51 1.49 0.07 1.23 0.99 0.87 44.46 0.17 1.69 45.77 10.76 12.88 1.77 7.74 6.92 8.94 -0.19 0.60 100.00
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.3.4
40
Large Variances: Liabilities
The following graphics summarize for communications equipment the large liability structure gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.
Gap: Short Term Debt & Current Portion of Long Term Debt 15 10
8.04
10.28
11.36
5 0 -3.32
-5 Finland
Europe
World Average
Gap
Gap: Accrued Payroll 4
3.88 2.85
3
2.2
2 1.03
1 0 Finland
Europe
World Average
Gap
Gap: Long Term Debt 15
14.25 9.07
10
7.63
6.62
5 0 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
41
Gap: Long Term Debt Excluding Capitalized Leases 15
14.25 8.81
10
7.51
6.74
5 0 Finland
Europe
World Average
Gap
Gap: Total Liabilities 60 50
50.03
45.21
44.46
40 30 20 5.57
10 0 Finland
Europe
World Average
Gap
Gap: Non-Equity Reserves 2
1.88
1.71
1.5 1 0.5
0.26
0.17
0 Finland
Europe
World Average
Gap
Gap: Common Equity 50
47.57
46.68
45.77
40 30 20 10
1.8
0 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
42
Gap: Common Stock 20
15.05
15 10
10.76 6.09
5 0 -4.67 Gap
-5 Finland
Europe
World Average
Gap: Revaluation Reserves 2.57
3
1.77
2 1
0.07
0 -1 -1.7
-2 Finland
Europe
World Average
Gap
Gap: Unappropriated Reserves 10
6.92 4.36
5 0
0.01
-5
-6.91
-10 Finland
Europe
World Average
Gap
Gap: Retained Earnings 30
25.66
25 20
16.72
15
11.67
10
8.94
5 0 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
3.3.5
43
Key Percentiles and Rankings
We now consider the distribution of liability ratios for communications equipment using ranks and percentiles. What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of liability structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a few key vertical liability ratios are highlighted in additional tables. Liability Structure
Finland
Rank of Total
Percentile
15.29 8.04 3.88 0.73 11.16 35.11 14.25 14.25 0.10 0.56 0.44 1.40 0.05 50.03 1.88 0.52 47.57 6.09 12.80 0.07 7.91 0.01 25.66 0.40 0.38 100.00
11 of 48 34 of 53 8 of 33 34 of 48 24 of 53 17 of 53 4 of 51 4 of 51 37 of 39 12 of 40 25 of 31 10 of 28 45 of 49 15 of 53 2 of 26 37 of 47 29 of 53 38 of 50 23 of 43 29 of 34 18 of 47 37 of 39 9 of 53 6 of 35 23 of 32
77.08 35.85 75.76 29.17 54.72 67.92 92.16 92.16 5.13 70.00 19.35 64.29 8.16 71.70 92.31 21.28 45.28 24.00 46.51 14.71 61.70 5.13 83.02 82.86 28.13
_________________________________________________________________________________________________________
Accounts Payable Short Term Debt & Current Portion of Long Term Debt Accrued Payroll Income Taxes Payable Other Current Liabilities Current Liabilities - Total Long Term Debt Long Term Debt Excluding Capitalized Leases Provision For Risks and Charges Deferred Taxes Deferred Taxes - Credit Deferred Taxes - Debit Other Liabilities Total Liabilities Non-Equity Reserves Minority Interest Common Equity Common Stock Capital Surplus Revaluation Reserves Other Appropriated Reserves Unappropriated Reserves Retained Earnings Unrealized Foreign Exchange Gain/Loss Treasury Stock Total Liabilities & Shareholders Equity
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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©2007 Icon Group International, Inc.
Financial Indicators
44
Accounts Payable Countries
Value (total liabilities & equity = 100)
Rank
Percentile
25.55 24.05 21.12 21.07 18.96 18.69 17.34 15.96 15.68 15.29 14.95 14.82 14.65 14.61 14.50 14.20 14.00 13.33 13.24 13.00 12.04 11.95 11.59 10.54 10.35 10.31 10.28 9.06 8.49 8.17 7.81 7.35 7.34 7.24 6.81 6.22 6.03 5.91 5.86 5.21 3.09
1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 26 27 28 29 31 33 35 37 39 40 41 42 43 44 45 46 47 48
97.92 95.83 93.75 91.67 87.50 85.42 83.33 81.25 79.17 77.08 75.00 72.92 70.83 68.75 66.67 64.58 62.50 60.42 58.33 56.25 54.17 52.08 50.00 45.83 43.75 41.67 39.58 35.42 31.25 27.08 22.92 18.75 16.67 14.58 12.50 10.42 8.33 6.25 4.17 2.08 0.00
Region
_________________________________________________________________________________________________________
India South Africa Turkey Mexico France Canada Spain Singapore China Finland New Zealand the United Kingdom Hong Kong Italy Greece Poland Japan Philippines Portugal Taiwan Australia Sweden Denmark Indonesia Thailand Netherlands Germany South Korea Malaysia Russia USA Norway Hungary Austria Belgium Brazil Switzerland Israel Ireland Luxembourg Chile
Asia Africa the Middle East Latin America Europe North America Europe Asia Asia Europe Oceana Europe Asia Europe Europe Europe Asia Asia Europe Asia Oceana Europe Europe Asia Asia Europe Europe Asia Asia Europe North America Europe Europe Europe Europe Latin America Europe the Middle East Europe Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
45
Accounts Payable (Communications Equipment) Countries in Europe
Value (total liabilities & equity = 100)
Rank
Percentile
20.07 18.96 18.42 17.90 17.34 17.27 16.28 15.48 15.29 14.93 14.82 14.73 14.61 14.50 14.20 14.05 13.44 13.26 13.24 12.77 12.67 12.29 12.26 11.95 11.59 10.31 10.28 8.74 8.34 8.32 8.17 8.15 7.89 7.35 7.34 7.24 7.17 7.00 7.00 6.81 6.60 6.27 6.18 6.03 5.86 5.62 5.21
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47
97.87 95.74 93.62 91.49 89.36 87.23 85.11 82.98 80.85 78.72 76.60 74.47 72.34 70.21 68.09 65.96 63.83 61.70 59.57 57.45 55.32 53.19 51.06 48.94 46.81 44.68 42.55 40.43 38.30 36.17 34.04 31.91 29.79 27.66 25.53 23.40 21.28 19.15 17.02 14.89 12.77 10.64 8.51 6.38 4.26 2.13 0.00
_________________________________________________________________________________________________________
Romania France Bosnia & Herzegovina Macedonia Spain Serbia & Montenegro Slovenia Monaco Finland Andorra the United Kingdom Vatican City Italy Greece Poland Faroe Islands Malta Isle of Man Portugal Moldova Cyprus Kazakhstan Bulgaria Sweden Denmark Netherlands Germany Estonia Belarus Slovakia Russia Lithuania Iceland Norway Hungary Austria San Marino Jersey Guernsey Belgium Ukraine Gibraltar Georgia Switzerland Ireland Liechtenstein Luxembourg
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
46
Current Liabilities - Total Countries
Value (total liabilities & equity = 100)
Rank
Percentile
47.76 47.38 47.25 46.25 46.19 43.36 43.28 43.18 42.90 41.94 41.70 37.57 37.22 36.85 36.00 35.11 34.94 34.68 34.26 34.00 33.66 33.57 32.88 32.64 32.29 31.57 31.38 31.16 30.33 30.15 29.90 29.10 28.17 28.06 27.84 27.49 27.25 25.04 24.40 24.39 23.01 21.69 21.66 21.09 20.18
1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 31 32 33 34 35 36 37 38 39 41 43 44 46 47 48 50 52
98.11 96.23 94.34 92.45 90.57 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 22.64 18.87 16.98 13.21 11.32 9.43 5.66 1.89
Region
_________________________________________________________________________________________________________
Pakistan Turkey Mexico Netherlands Greece China South Africa France Italy Denmark India Australia the United Kingdom Brazil Norway Finland Japan Singapore New Zealand Poland South Korea Hong Kong Taiwan Sweden Germany Austria Belgium Thailand Russia Israel Ireland Philippines Chile Canada Portugal Peru Hungary Malaysia Spain Switzerland Indonesia USA Czech Republic Luxembourg Argentina
the Middle East the Middle East Latin America Europe Europe Asia Africa Europe Europe Europe Asia Oceana Europe Latin America Europe Europe Asia Asia Oceana Europe Asia Asia Asia Europe Europe Europe Europe Asia Europe the Middle East Europe Asia Latin America North America Europe Latin America Europe Asia Europe Europe Asia North America Europe Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
47
Current Liabilities - Total (Communications Equipment) Countries in Europe
Value (total liabilities & equity = 100)
Rank
Percentile
46.25 46.19 45.01 43.25 43.18 42.90 42.81 42.25 41.94 41.31 40.15 38.73 37.22 36.00 35.11 34.00 33.63 32.64 32.45 32.43 32.29 32.19 31.57 31.38 31.27 30.97 30.90 30.57 30.49 30.49 30.33 30.26 29.90 29.42 29.37 27.84 27.25 26.65 24.51 24.40 24.39 24.00 23.30 22.94 22.90 22.76 21.91 21.66 21.09 20.56 20.55
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Netherlands Greece Romania Vatican City France Italy Malta Isle of Man Denmark Bosnia & Herzegovina Macedonia Serbia & Montenegro the United Kingdom Norway Finland Poland Monaco Sweden Estonia Andorra Germany Faroe Islands Austria Belgium San Marino Belarus Slovakia Moldova Guernsey Jersey Russia Lithuania Ireland Kazakhstan Bulgaria Portugal Hungary Cyprus Ukraine Spain Switzerland Albania Gibraltar Georgia Slovenia Liechtenstein Iceland Czech Republic Luxembourg Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
48
Long Term Debt Countries
Value (total liabilities & equity = 100)
Rank
Percentile
18.57 14.85 14.70 14.25 13.43 13.40 12.96 12.71 12.64 12.59 12.38 12.08 11.94 11.71 11.16 11.10 10.38 10.05 9.16 9.03 8.74 8.55 7.69 7.61 7.57 7.16 6.52 6.37 6.01 5.89 5.59 5.58 5.25 4.66 4.15 3.95 3.28 3.23 3.11 2.85 0.99 0.98 0.30
1 2 3 4 6 7 8 9 10 11 13 14 15 16 17 18 19 21 22 23 24 25 26 27 28 30 32 33 34 35 36 37 38 39 41 42 44 45 46 48 49 50 51
98.04 96.08 94.12 92.16 88.24 86.27 84.31 82.35 80.39 78.43 74.51 72.55 70.59 68.63 66.67 64.71 62.75 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 41.18 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 19.61 17.65 13.73 11.76 9.80 5.88 3.92 1.96 0.00
Region
_________________________________________________________________________________________________________
Peru Denmark Switzerland Finland Turkey Mexico Belgium Luxembourg Poland Italy USA India France Greece South Korea Sweden Netherlands Russia Norway Hungary Thailand the United Kingdom Austria Japan Taiwan Germany Australia Singapore New Zealand Hong Kong South Africa Brazil Philippines Malaysia Indonesia Portugal Canada Pakistan China Chile Israel Ireland Spain
Latin America Europe Europe Europe the Middle East Latin America Europe Europe Europe Europe North America Asia Europe Europe Asia Europe Europe Europe Europe Europe Asia Europe Europe Asia Asia Europe Oceana Asia Oceana Asia Africa Latin America Asia Asia Asia Europe North America the Middle East Asia Latin America the Middle East Europe Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
49
Long Term Debt (Communications Equipment) Countries in Europe
Value (total liabilities & equity = 100)
Rank
Percentile
16.21 14.85 14.70 14.25 13.72 12.96 12.77 12.71 12.69 12.64 12.59 12.50 11.94 11.71 11.71 11.38 11.36 11.10 10.98 10.93 10.91 10.85 10.75 10.71 10.38 10.26 10.24 10.05 10.03 9.16 9.03 8.55 8.12 7.72 7.69 7.61 7.60 7.42 7.42 7.16 6.18 5.96 5.65 3.95 3.78 0.98 0.30 0.28
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
97.92 95.83 93.75 91.67 89.58 87.50 85.42 83.33 81.25 79.17 77.08 75.00 72.92 70.83 68.75 66.67 64.58 62.50 60.42 58.33 56.25 54.17 52.08 50.00 47.92 45.83 43.75 41.67 39.58 37.50 35.42 33.33 31.25 29.17 27.08 25.00 22.92 20.83 18.75 16.67 14.58 12.50 10.42 8.33 6.25 4.17 2.08 0.00
_________________________________________________________________________________________________________
Albania Denmark Switzerland Finland Liechtenstein Belgium Romania Luxembourg Vatican City Poland Italy Iceland France Bosnia & Herzegovina Greece Macedonia Moldova Sweden Serbia & Montenegro Kazakhstan Bulgaria Malta Estonia Isle of Man Netherlands Belarus Slovakia Russia Lithuania Norway Hungary the United Kingdom Ukraine Gibraltar Austria San Marino Georgia Jersey Guernsey Germany Monaco Andorra Faroe Islands Portugal Cyprus Ireland Spain Slovenia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
50
Total Liabilities Countries
Value (total liabilities & equity = 100)
Rank
Percentile
65.93 65.75 63.98 61.61 60.75 60.21 58.44 57.81 54.90 53.54 52.84 52.06 50.33 50.03 49.34 49.16 48.35 47.98 47.27 46.95 46.76 46.06 45.23 44.53 44.14 42.38 42.31 41.50 41.19 40.70 39.96 39.89 38.01 37.42 36.92 35.57 35.27 33.97 32.08 31.89 31.46 29.59 26.36 22.43 20.89
1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 28 29 30 31 32 33 34 35 36 37 38 39 41 43 44 46 48 50 51 53
98.11 96.23 94.34 92.45 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 22.64 18.87 16.98 13.21 9.43 5.66 3.77 0.00
Region
_________________________________________________________________________________________________________
Turkey Mexico Netherlands Italy Denmark France Greece Germany India Austria Poland Sweden Pakistan Finland South Africa Belgium the United Kingdom Switzerland China South Korea Japan Peru Australia Brazil Norway Singapore Russia Luxembourg Taiwan New Zealand Thailand Hong Kong Hungary Philippines USA Israel Ireland Chile Portugal Canada Malaysia Indonesia Spain Czech Republic Argentina
the Middle East Latin America Europe Europe Europe Europe Europe Europe Asia Europe Europe Europe the Middle East Europe Africa Europe Europe Europe Asia Asia Asia Latin America Oceana Latin America Europe Asia Europe Europe Asia Oceana Asia Asia Europe Asia North America the Middle East Europe Latin America Europe North America Asia Asia Europe Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
51
Total Liabilities (Communications Equipment) Countries in Europe
Value (total liabilities & equity = 100)
Rank
Percentile
63.98 62.65 62.11 61.61 60.75 60.21 58.44 57.81 57.49 55.87 54.17 53.90 53.54 53.45 53.03 52.84 52.06 51.71 51.71 50.03 49.16 48.35 47.98 47.50 45.71 45.63 45.26 44.78 44.14 43.20 43.10 42.31 42.21 41.50 41.10 40.21 39.63 38.25 38.01 37.29 35.27 34.18 32.50 32.08 32.00 30.70 26.36 24.75 22.43 21.29 21.28
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Netherlands Romania Vatican City Italy Denmark France Greece Germany Bosnia & Herzegovina Macedonia Malta Serbia & Montenegro Austria Isle of Man San Marino Poland Sweden Jersey Guernsey Finland Belgium the United Kingdom Switzerland Moldova Kazakhstan Bulgaria Estonia Liechtenstein Norway Belarus Slovakia Russia Lithuania Luxembourg Monaco Albania Andorra Faroe Islands Hungary Iceland Ireland Ukraine Gibraltar Portugal Georgia Cyprus Spain Slovenia Czech Republic Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
52
Common Equity Countries
Value (total liabilities & equity = 100)
Rank
Percentile
77.39 72.09 67.93 67.92 66.03 65.84 65.23 62.28 60.46 59.96 58.97 58.53 58.19 57.02 55.57 55.46 55.43 54.29 53.94 52.71 52.03 50.79 50.24 49.95 49.86 48.73 47.57 46.84 46.73 46.63 45.97 45.01 44.86 44.33 43.92 43.73 40.70 40.44 38.63 38.30 37.39 37.22 35.85 34.01 33.92
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 28 29 30 31 32 33 36 37 38 39 41 42 43 45 46 47 48 49 50 51
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 52.83 50.94 47.17 45.28 43.40 41.51 39.62 37.74 32.08 30.19 28.30 26.42 22.64 20.75 18.87 15.09 13.21 11.32 9.43 7.55 5.66 3.77
Region
_________________________________________________________________________________________________________
Czech Republic Argentina Canada Portugal Spain Malaysia Chile USA Israel Ireland Philippines Thailand New Zealand Hong Kong Singapore Brazil Taiwan Norway Peru Australia Japan Switzerland the United Kingdom South Korea Belgium China Finland Poland Sweden Indonesia South Africa Russia Austria India Luxembourg Pakistan Germany Hungary Denmark France Greece Italy Netherlands Turkey Mexico
Europe Latin America North America Europe Europe Asia Latin America North America the Middle East Europe Asia Asia Oceana Asia Asia Latin America Asia Europe Latin America Oceana Asia Europe Europe Asia Europe Asia Europe Europe Europe Asia Africa Europe Europe Asia Europe the Middle East Europe Europe Europe Europe Europe Europe Europe the Middle East Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
53
Common Equity (Communications Equipment) Countries in Europe
Value (total liabilities & equity = 100)
Rank
Percentile
77.39 73.46 73.43 67.92 66.03 65.02 62.92 61.99 59.96 54.68 54.29 53.89 51.97 50.79 50.24 49.86 48.16 47.57 47.39 47.08 46.84 46.73 45.96 45.86 45.01 44.91 44.86 44.43 43.92 43.32 43.32 42.11 40.70 40.53 40.45 40.44 38.63 38.30 37.52 37.39 37.22 36.37 35.85 34.66 34.58 34.20 34.05 32.32 29.66 28.82 27.80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Czech Republic Latvia Croatia Portugal Spain Cyprus Iceland Slovenia Ireland Faroe Islands Norway Monaco Andorra Switzerland the United Kingdom Belgium Estonia Finland Liechtenstein Albania Poland Sweden Belarus Slovakia Russia Lithuania Austria San Marino Luxembourg Guernsey Jersey Moldova Germany Kazakhstan Bulgaria Hungary Denmark France Vatican City Greece Italy Ukraine Netherlands Malta Gibraltar Isle of Man Georgia Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
54
Retained Earnings Countries
Value (total liabilities & equity = 100)
Rank
Percentile
52.25 32.03 31.46 28.81 28.18 27.61 27.41 26.01 25.66 25.32 23.39 23.23 22.50 21.97 21.69 19.69 19.17 16.87 16.17 15.63 15.57 14.45 13.02 11.80 11.70 11.44 10.63 10.26 9.29 8.15 8.08 6.81 6.04 4.36 4.34 4.31 3.91 3.86 1.67 1.12 1.05 -0.03 -0.34 -0.52 -0.96
1 2 3 4 5 6 7 8 9 10 12 13 14 16 17 18 19 20 22 23 24 26 28 29 30 31 33 34 35 36 37 38 39 40 41 42 44 45 46 48 49 50 51 52 53
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 77.36 75.47 73.58 69.81 67.92 66.04 64.15 62.26 58.49 56.60 54.72 50.94 47.17 45.28 43.40 41.51 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 16.98 15.09 13.21 9.43 7.55 5.66 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Netherlands Canada USA Thailand New Zealand Hong Kong Japan Switzerland Finland the United Kingdom Norway Denmark Luxembourg Austria Malaysia Philippines South Africa Australia Chile Singapore Indonesia South Korea Russia Belgium Hungary Pakistan Sweden Germany Spain Israel Ireland Taiwan Italy Turkey Mexico India France China Peru Czech Republic Argentina Portugal Brazil Greece Poland
Europe North America North America Asia Oceana Asia Asia Europe Europe Europe Europe Europe Europe Europe Asia Asia Africa Oceana Latin America Asia Asia Asia Europe Europe Europe the Middle East Europe Europe Europe the Middle East Europe Asia Europe the Middle East Latin America Asia Europe Asia Latin America Europe Latin America Europe Latin America Europe Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
55
Retained Earnings (Communications Equipment) Countries in Europe
Value (total liabilities & equity = 100)
Rank
Percentile
52.25 31.78 26.47 26.01 25.66 25.32 24.27 23.39 23.23 22.50 21.97 21.76 21.21 21.21 15.15 14.61 13.93 13.29 13.26 13.02 12.99 11.80 11.70 10.63 10.52 10.26 10.00 9.85 9.29 8.72 8.08 6.09 6.04 4.14 3.91 3.80 3.69 3.56 1.46 1.12 1.07 1.06 -0.02 -0.03 -0.47 -0.48 -0.52 -0.82 -0.83 -0.86 -0.96
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Netherlands Iceland Faroe Islands Switzerland Finland the United Kingdom Liechtenstein Norway Denmark Luxembourg Austria San Marino Jersey Guernsey Monaco Andorra Estonia Belarus Slovakia Russia Lithuania Belgium Hungary Sweden Ukraine Germany Gibraltar Georgia Spain Slovenia Ireland Vatican City Italy Romania France Bosnia & Herzegovina Macedonia Serbia & Montenegro Albania Czech Republic Latvia Croatia Cyprus Portugal Isle of Man Malta Greece Bulgaria Kazakhstan Moldova Poland
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.4 3.4.1
FINANCIAL RETURNS RATIOS
IN
56
FINLAND: INCOME STRUCTURE
Overview
In this chapter we consider the income structure of companies operating in Finland benchmarked against global averages. The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of income is then presented for the proto-typical firm involved in communications equipment operating in Finland and the average global benchmarks (total revenue = 100 percent). For ratios where there are large deviations between Finland and the benchmarks, graphics are provided. Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key vertical analysis income ratios are highlighted across countries in the comparison group.
3.4.2
Income Statements – Definitions of Terms
The following definitions are provided for those less familiar with the income-side of financial statement analysis. As this chapter deals with the vertical analysis and global benchmarking of income, only definitions covering certain terms used in this chapter’s tables and graphs are provided here . The glossary below reflects commonly accepted definitions across various countries and official sources. •
Amortization. Amortization generally refers to the depreciation, depletion, or charge-off to expense of intangible and tangible assets over a period of time. Amortization is commonly understood to be the taking as an expense (writing off) of the loss of value of an intangible asset such as a copyright, a patent, or a mailing list, in an accounting period.
•
Cost of Goods Sold (excluding depreciation). For retail companies, cost of goods sold is generally defined as the equivalent of starting inventory plus purchases minus ending inventory. In manufacturing, cost of goods sold is defined to equal the starting inventory plus the cost of goods manufactured minus ending inventory. Most pure service firms do not generally have cost of goods sold.
•
Current Domestic Income Tax. Current domestic income taxes are commonly defined as compulsory charges levied by the government where the company is located on current income.
•
Current Foreign Income Tax. Current foreign income taxes are commonly defined as compulsory charges levied by foreign governments on current income.
•
Deferred Domestic Income Tax. Deferred domestic income tax is defined as a compulsory charge from a previous accounting period which is yet unpaid to the government where the company is located on current income.
•
Deferred Foreign Income Tax. Deferred foreign income tax is generally defined as a compulsory charge from a previous accounting period which is yet unpaid to foreign governments on current income.
•
Depletion. Depletion is commonly defined to be included as one of the elements of amortization, and is understood to be the portion of the carrying value (other than the portion associated with tangible assets) prorated in each accounting period for financial reporting purposes.
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Financial Indicators
57
•
Depreciation. Depreciation generally is defined as the expiration in the service life of fixed assets, other than depletable assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence. Depreciation is commonly defined as the portion of the cost of a fixed asset charged as an expense during a particular period. In accounting for depreciation, the cost of a fixed asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost. Through this process, the cost of the asset is ultimately charged off as an expense.
•
Earnings Before Interest and Taxes (EBIT). EBIT is a financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and non-operating profit before the deduction of interest and income taxes.
•
Gross Income. Gross income is commonly defined as all the money, goods, and property received by the company that must be included as taxable income.
•
Income Taxes. Income taxes are defined to include those taxes levied by state, federal, and local governments on the company's reported accounting profit. Income taxes generally include both deferred and paid taxes. They are generally determined after the interest expense has been deducted.
•
Interest Expense on Debt. Interest expenses on debt are those which are spent on current debt and added to the net income so avoid underestimating interest coverage.
•
Minority Interest. Minority interest is the proportional share of the minority ownership's interest (less than 50 percent) in the earnings or losses.
•
Net Income Available to Common. Net income available to common is defined as the net income available to common stockholders.
•
Net Income Before Preferred Dividends. Net income before preferred dividends is generally calculated as the difference between total revenues and total expense prior to the granting of preferred dividends.
•
Net Sales or Revenues. Revenues or net sales are defined as payments made to and received by an entity. May take the form of taxes, user fees, fines, fees for service, and so on.
•
Non-Operating Interest Income. Non-operating interest income is generally understood to be any interest received (e.g., royalty, production payment, net profits interest) that does not involve the operation of the company.
•
Operating Expenses. Operating expenses are generally defined as those incurred in paying for the company’s day-to-day activities.
•
Operating Income. Operating income is generally defined to equal operating revenues less operating expenses. It typically excludes items of other revenue and expense such as equity in earnings of unconsolidated companies, dividends, interest income and expense, income taxes, extraordinary items, and cumulative effect of accounting changes.
•
Pretax Equity In Earnings. Pretax equity in earnings is generally defined to equal a company's proportional share (based on ownership) of the gross earnings or losses of an unconsolidated company.
•
Pretax Income. Pretax income is generally defined as income before tax deductions.
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Financial Indicators
58
•
Reserves - Increase/Decrease. Reserve increases or decreases are defined as the amount of change of liabilities resulting to income statement and an equal increase in the reserve account on the balance sheet. Reserve accounts do not generally represent definite commitments to pay out funds in the future but do represent an estimate of funds that will be paid out in the future.
•
Selling, General & Administrative Expenses. Selling, general and administrative expenses are expenses independent from cost of sales for the purpose of illustrating the amount of the company's selling and administrative costs. Generally included in this figure are the costs of employees' salaries, commissions, and travel expenses; company payroll and office costs; and advertising and promotion.
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Financial Indicators
3.4.3
59
Income Structure: Outlook
Using the methodology described in the introduction, the following table summarizes income structure benchmarks for firms involved in communications equipment in Finland. To allow comparable benchmarking, a common index of Net Sales or Revenues = 100 is used. All figures are current-year projections for companies operating in Finland based on latest financial results available. Income Structure Finland Europe World Avg. _________________________________________________________________________________________________________
Net Sales or Revenues Cost of Goods Sold (Excluding Depreciation) Depreciation, Depletion & Amortization Gross Income Selling, General & Administrative Expenses Other Operating Expenses Operating Expenses - Total Operating Income Extraordinary Credit - Pretax Extraordinary Charge - Pretax Non-Operating Interest Income Reserves - Increase/Decrease Pretax Equity In Earnings Other Income/Expense Net Earnings Before Interest and Taxes (EBIT) Interest Expense on Debt Pretax Income Income Taxes Current Domestic Income Tax Current Foreign Income Tax Deferred Domestic Income Tax Deferred Foreign Income Tax Minority Interest Net Income Before Extra Items/Prefer Dividends Net Income Before Preferred Dividends Net Income Available to Common
100.00 77.10 5.45 17.83 9.59 93.95 8.18 5.70 0.01 0.47 0.70 -0.46 0.28 4.57 10.93 1.35 9.58 2.60 3.23 0.26 -0.25 -0.15 0.06 6.92 6.92 6.92
100.00 68.06 5.32 20.17 16.85 89.42 4.55 4.20 0.66 0.72 1.86 -0.15 0.17 1.51 7.14 2.78 4.27 1.41 1.46 0.22 0.01 0.00 0.08 2.97 2.88 2.97
100.00 66.35 4.51 18.89 9.61 80.77 3.91 6.55 0.29 0.69 1.05 -0.01 0.19 1.28 8.36 2.74 5.63 1.26 1.25 0.05 -0.04 0.00 0.18 4.27 4.27 4.26
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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©2007 Icon Group International, Inc.
Financial Indicators
3.4.4
60
Large Variances: Income
The following graphics summarize for communications equipment the large income structure gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.
Gap: Cost of Goods Sold (Excluding Depreciation) 80
77.1
68.06
66.35
60 40 20
10.75
0 Finland
Europe
World Average
Gap
Gap: Other Operating Expenses 100
93.95
89.42
80
80.77
60 40 13.18
20 0 Finland
Europe
World Average
Gap
Gap: Operating Expenses - Total 10
8.18
8 6
4.55
4
3.91
4.27
2 0 Finland
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Europe
World Average
Gap
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Financial Indicators
61
Gap: Other Income/Expense Net 5
4.57
4
3.29
3 1.51
2
1.28
1 0 Finland
Europe
World Average
Gap
Gap: Earnings Before Interest and Taxes (EBIT) 12
10.93
10 7.14
8
8.36
6 4
2.57
2 0 Finland
Europe
World Average
Gap
Gap: Interest Expense on Debt 2.78
3 2
2.74
1.35
1 0 -1
-1.39
-2 Finland
Europe
World Average
Gap
Gap: Pretax Income 10
9.58
8 5.63
6
4.27
3.95
4 2 0 Finland
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Europe
World Average
Gap
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Financial Indicators
62
Gap: Current Domestic Income Tax 4
3.23
3 1.98
2
1.46
1.25
1 0 Finland
Europe
World Average
Gap
Gap: Net Income Before Extra Items/Prefer Dividends 8
6.92
6
4.27
4
2.97
2.65
2 0 Finland
Europe
World Average
Gap
Gap: Net Income Before Preferred Dividends 8
6.92
6
4.27
4
2.88
2.65
2 0 Finland
Europe
World Average
Gap
Gap: Net Income Available to Common 8
6.92
6
4.26
4
2.97
2.66
2 0 Finland
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Europe
World Average
Gap
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Financial Indicators
3.4.5
63
Key Percentiles and Rankings
We now consider the distribution of income ratios for communications equipment using ranks and percentiles. What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of income structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a few key vertical income ratios are highlighted in additional tables. Income Structure
Finland
Rank of Total
Percentile
100.00 77.10 5.45 17.83 9.59 93.95 8.18 5.70 0.01 0.47 0.70 -0.46 0.28 4.57 10.93 1.35 9.58 2.60 3.23 0.26 -0.25 -0.15 0.06 6.92 6.92 6.92
7 of 52 24 of 53 40 of 52 34 of 44 20 of 50 12 of 43 27 of 53 31 of 33 28 of 41 29 of 50 8 of 10 6 of 30 1 of 53 10 of 53 32 of 53 6 of 53 9 of 50 5 of 41 13 of 18 30 of 38 12 of 13 22 of 46 8 of 53 8 of 53 8 of 53
86.54 54.72 23.08 22.73 60.00 72.09 49.06 6.06 31.71 42.00 20.00 80.00 98.11 81.13 39.62 88.68 82.00 87.80 27.78 21.05 7.69 52.17 84.91 84.91 84.91
_________________________________________________________________________________________________________
Net Sales or Revenues Cost of Goods Sold (Excluding Depreciation) Depreciation, Depletion & Amortization Gross Income Selling, General & Administrative Expenses Other Operating Expenses Operating Expenses - Total Operating Income Extraordinary Credit - Pretax Extraordinary Charge - Pretax Non-Operating Interest Income Reserves - Increase/Decrease Pretax Equity In Earnings Other Income/Expense Net Earnings Before Interest and Taxes (EBIT) Interest Expense on Debt Pretax Income Income Taxes Current Domestic Income Tax Current Foreign Income Tax Deferred Domestic Income Tax Deferred Foreign Income Tax Minority Interest Net Income Before Extra Items/Prefer Dividends Net Income Before Preferred Dividends Net Income Available to Common
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
64
Cost of Goods Sold (Excluding Depreciation) Countries
Value (total revenue = 100)
Rank
Percentile
96.56 92.13 85.82 83.69 81.05 77.76 77.10 75.10 74.86 74.77 74.66 74.59 74.08 74.07 73.73 72.89 72.79 72.61 72.57 71.86 71.53 71.37 71.36 70.07 70.01 69.45 69.00 68.25 65.61 65.08 64.93 63.77 63.74 63.71 63.60 63.27 62.95 61.76 60.54 59.91 53.41 47.87 41.92 41.58
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 41 42 46 48 50 51
98.08 96.15 94.23 92.31 90.38 88.46 86.54 84.62 82.69 80.77 78.85 76.92 75.00 73.08 71.15 69.23 67.31 65.38 63.46 61.54 59.62 55.77 53.85 51.92 50.00 48.08 46.15 44.23 42.31 40.38 38.46 36.54 34.62 32.69 30.77 28.85 26.92 25.00 21.15 19.23 11.54 7.69 3.85 1.92
Region
_________________________________________________________________________________________________________
Portugal Czech Republic Argentina India France South Korea Finland Denmark Peru Germany Spain China Singapore New Zealand Sweden Malaysia Poland Thailand Hong Kong Netherlands Japan Austria South Africa Russia Norway Taiwan the United Kingdom Belgium Australia Brazil Chile Turkey Italy Canada Mexico Greece Hungary Switzerland Philippines USA Luxembourg Indonesia Israel Ireland
Europe Europe Latin America Asia Europe Asia Europe Europe Latin America Europe Europe Asia Asia Oceana Europe Asia Europe Asia Asia Europe Asia Europe Africa Europe Europe Asia Europe Europe Oceana Latin America Latin America the Middle East Europe North America Latin America Europe Europe Europe Asia North America Europe Asia the Middle East Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
65
Cost of Goods Sold (Excluding Depreciation) (Communications Equipment) Countries in Europe
Value (total revenue = 100)
Rank
Percentile
96.56 92.43 92.13 87.44 87.41 81.05 77.10 75.10 74.96 74.77 74.66 73.73 72.79 71.86 71.83 71.54 71.38 71.37 70.69 70.09 70.07 70.01 69.90 69.59 69.27 69.00 68.92 68.92 68.25 65.44 65.35 64.26 63.74 63.27 62.98 62.95 62.86 61.76 60.59 60.53 58.64 57.87 57.63 56.61 55.60 54.04 53.83 53.41 53.00 52.13 41.58
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Portugal Cyprus Czech Republic Latvia Croatia France Finland Denmark Estonia Germany Spain Sweden Poland Netherlands Monaco Belarus Slovakia Austria San Marino Slovenia Russia Norway Lithuania Faroe Islands Andorra the United Kingdom Guernsey Jersey Belgium Moldova Albania Vatican City Italy Greece Kazakhstan Hungary Bulgaria Switzerland Romania Iceland Malta Isle of Man Liechtenstein Ukraine Bosnia & Herzegovina Macedonia Gibraltar Luxembourg Georgia Serbia & Montenegro Ireland
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
66
Selling, General & Administrative Expenses Countries
Value (total revenue = 100)
Rank
Percentile
49.28 48.88 37.18 26.82 26.49 26.45 24.84 23.95 23.24 22.82 22.11 21.78 21.54 20.10 19.96 19.96 19.75 19.40 19.35 19.08 16.08 14.78 14.77 14.70 14.60 14.53 14.41 13.23 11.67 11.06 10.12 9.91 9.59 9.20 8.29 7.83 7.45
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 27 28 29 30 31 32 33 34 36 40 41 42
97.73 95.45 93.18 90.91 88.64 86.36 84.09 81.82 79.55 77.27 75.00 72.73 70.45 68.18 65.91 63.64 61.36 59.09 56.82 54.55 50.00 47.73 45.45 43.18 40.91 38.64 36.36 34.09 31.82 29.55 27.27 25.00 22.73 18.18 9.09 6.82 4.55
Region
_________________________________________________________________________________________________________
Israel Ireland Netherlands USA Canada Belgium Greece Sweden Switzerland the United Kingdom Denmark Italy Germany Luxembourg Japan Australia France Turkey Mexico Chile Brazil Poland Taiwan New Zealand South Africa China Hong Kong Singapore Malaysia Thailand Austria Philippines Finland South Korea Russia Indonesia Hungary
the Middle East Europe Europe North America North America Europe Europe Europe Europe Europe Europe Europe Europe Europe Asia Oceana Europe the Middle East Latin America Latin America Latin America Europe Asia Oceana Africa Asia Asia Asia Asia Asia Europe Asia Europe Asia Europe Asia Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
67
Selling, General & Administrative Expenses (Communications Equipment) Countries in Europe
Value (total revenue = 100)
Rank
Percentile
48.88 37.18 27.09 26.45 24.84 23.95 23.24 23.02 22.82 22.72 22.11 21.95 21.78 21.69 21.54 20.10 19.75 18.44 16.92 16.44 15.86 14.78 13.81 13.29 12.83 12.79 12.77 12.37 10.12 10.03 9.78 9.78 9.59 8.87 8.46 8.44 8.29 8.27 7.45 6.70 6.37 6.27
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
97.62 95.24 92.86 90.48 88.10 85.71 83.33 80.95 78.57 76.19 73.81 71.43 69.05 66.67 64.29 61.90 59.52 57.14 54.76 52.38 50.00 47.62 45.24 42.86 40.48 38.10 35.71 33.33 30.95 28.57 26.19 23.81 21.43 19.05 16.67 14.29 11.90 9.52 7.14 4.76 2.38 0.00
_________________________________________________________________________________________________________
Ireland Netherlands Iceland Belgium Greece Sweden Switzerland Malta the United Kingdom Isle of Man Denmark Vatican City Italy Liechtenstein Germany Luxembourg France Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Poland Faroe Islands Moldova Monaco Kazakhstan Bulgaria Andorra Austria San Marino Guernsey Jersey Finland Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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©2007 Icon Group International, Inc.
Financial Indicators
68
Operating Expenses - Total Countries
Value (total revenue = 100)
Rank
Percentile
27.81 21.99 19.26 16.91 15.48 14.79 13.55 8.45 8.18 7.87 7.55 7.15 6.40 5.99 5.37 4.63 4.15 3.71 3.25 3.19 3.16 3.12 2.81 1.81 1.67 1.64 1.61 0.95 0.57 0.50 0.30 0.27 0.24 0.21 0.06 0.00 -0.09
1 3 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 36 37 38 39 40 43
97.67 93.02 88.37 86.05 81.40 79.07 76.74 74.42 72.09 69.77 67.44 65.12 62.79 60.47 58.14 55.81 53.49 51.16 48.84 46.51 44.19 41.86 39.53 37.21 34.88 32.56 30.23 27.91 25.58 23.26 20.93 16.28 13.95 11.63 9.30 6.98 0.00
Region
_________________________________________________________________________________________________________
Philippines Indonesia Norway Spain Austria Canada Netherlands Czech Republic Finland Argentina Australia Germany South Africa Poland Denmark France Brazil the United Kingdom Switzerland India Italy Malaysia Luxembourg Singapore Belgium New Zealand Hong Kong Taiwan USA Portugal South Korea Russia Hungary China Japan Thailand Sweden
Asia Asia Europe Europe Europe North America Europe Europe Europe Latin America Oceana Europe Africa Europe Europe Europe Latin America Europe Europe Asia Europe Asia Europe Asia Europe Oceana Asia Asia North America Europe Asia Europe Europe Asia Asia Asia Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
69
Operating Expenses - Total (Communications Equipment) Countries in Europe
Value (total revenue = 100)
Rank
Percentile
19.26 16.91 15.88 15.48 15.34 14.95 14.95 13.55 8.45 8.18 8.02 8.02 7.15 5.99 5.39 5.37 5.18 5.17 4.63 3.71 3.25 3.19 3.16 3.03 2.81 1.75 1.69 1.67 1.54 0.57 0.50 0.48 0.29 0.28 0.28 0.27 0.27 0.24 0.22 0.21 0.21 -0.09
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
97.62 95.24 92.86 90.48 88.10 85.71 83.33 80.95 78.57 76.19 73.81 71.43 69.05 66.67 64.29 61.90 59.52 57.14 54.76 52.38 50.00 47.62 45.24 42.86 40.48 38.10 35.71 33.33 30.95 28.57 26.19 23.81 21.43 19.05 16.67 14.29 11.90 9.52 7.14 4.76 2.38 0.00
_________________________________________________________________________________________________________
Norway Spain Slovenia Austria San Marino Guernsey Jersey Netherlands Czech Republic Finland Latvia Croatia Germany Poland Moldova Denmark Kazakhstan Bulgaria France the United Kingdom Switzerland Vatican City Italy Liechtenstein Luxembourg Monaco Andorra Belgium Faroe Islands Iceland Portugal Cyprus Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Sweden
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
70
Operating Income Countries
Value (total revenue = 100)
Rank
Percentile
10.82 10.69 10.45 10.42 10.37 8.94 8.83 8.82 8.49 8.40 8.40 8.39 8.32 8.31 7.35 7.14 6.44 6.38 6.36 6.36 6.33 5.78 5.70 5.43 5.29 5.12 4.78 4.49 4.18 4.15 3.95 3.94 3.89 3.40 3.32 3.30 2.96 0.95 0.75 0.50 -0.25 -0.32 -1.62 -1.74 -2.04
1 2 3 4 5 7 8 9 10 11 12 13 14 15 17 18 21 22 23 24 25 26 27 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 48 50 51 52 53
98.11 96.23 94.34 92.45 90.57 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 67.92 66.04 60.38 58.49 56.60 54.72 52.83 50.94 49.06 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 9.43 5.66 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Chile Australia Turkey Mexico India Thailand Brazil Taiwan New Zealand Canada South Africa Pakistan USA Hong Kong Peru South Korea Russia Belgium Singapore China the United Kingdom Hungary Finland Malaysia Greece Italy Denmark France Israel Ireland Japan Switzerland Norway Luxembourg Spain Sweden Austria Poland Germany Netherlands Indonesia Philippines Argentina Czech Republic Portugal
Latin America Oceana the Middle East Latin America Asia Asia Latin America Asia Oceana North America Africa the Middle East North America Asia Latin America Asia Europe Europe Asia Asia Europe Europe Europe Asia Europe Europe Europe Europe the Middle East Europe Asia Europe Europe Europe Europe Europe Europe Europe Europe Europe Asia Asia Latin America Europe Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
71
Operating Income (Communications Equipment) Countries in Europe
Value (total revenue = 100)
Rank
Percentile
9.93 9.11 8.86 8.54 8.41 7.97 6.89 6.57 6.56 6.44 6.42 6.42 6.38 6.33 6.17 5.95 5.78 5.70 5.29 5.20 5.16 5.12 4.95 4.90 4.87 4.83 4.78 4.49 4.15 3.94 3.89 3.67 3.40 3.32 3.30 3.11 2.96 2.93 2.86 2.86 0.95 0.86 0.82 0.82 0.75 0.50 -1.65 -1.65 -1.74 -1.95 -2.04
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Iceland Faroe Islands Estonia Belarus Slovakia Russia Lithuania Albania Belgium the United Kingdom Monaco Andorra Hungary Finland Greece Ukraine Vatican City Italy Gibraltar Malta Georgia Isle of Man Denmark France Ireland Switzerland Norway Liechtenstein Luxembourg Spain Sweden Slovenia Austria San Marino Jersey Guernsey Poland Moldova Kazakhstan Bulgaria Germany Netherlands Croatia Latvia Czech Republic Cyprus Portugal
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
72
Earnings Before Interest and Taxes (EBIT) Countries
Value (total revenue = 100)
Rank
Percentile
19.21 19.16 16.59 16.38 12.72 11.48 10.93 10.91 10.60 10.38 9.61 9.48 9.46 9.27 9.12 9.03 8.88 8.81 8.81 8.20 7.91 7.77 7.23 7.06 7.04 7.00 6.90 6.85 6.56 6.31 6.29 6.07 5.94 5.50 5.46 5.36 5.24 4.97 4.96 4.59 3.16 2.70 -0.33 -0.42 -1.05
1 2 4 5 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 50 52 53
98.11 96.23 92.45 90.57 86.79 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 54.72 52.83 50.94 49.06 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 13.21 11.32 5.66 1.89 0.00
Region
_________________________________________________________________________________________________________
Turkey Mexico Brazil Thailand Taiwan Peru Finland India South Africa Greece Canada Australia New Zealand Hong Kong Chile China Israel Pakistan Ireland Belgium USA South Korea Singapore Malaysia Czech Republic Russia the United Kingdom Italy Argentina Switzerland Hungary Austria Poland France Luxembourg Denmark Germany Spain Norway Sweden Netherlands Japan Indonesia Philippines Portugal
the Middle East Latin America Latin America Asia Asia Latin America Europe Asia Africa Europe North America Oceana Oceana Asia Latin America Asia the Middle East the Middle East Europe Europe North America Asia Asia Asia Europe Europe Europe Europe Latin America Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Asia Asia Asia Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
73
Earnings Before Interest and Taxes (EBIT) (Communications Equipment) Countries in Europe
Value (total revenue = 100)
Rank
Percentile
18.26 16.75 16.28 15.71 10.93 10.38 10.02 9.62 9.50 8.89 8.81 8.20 7.99 7.49 7.15 7.13 7.04 7.01 7.00 6.99 6.91 6.90 6.85 6.76 6.69 6.68 6.31 6.29 6.07 6.02 5.94 5.89 5.87 5.87 5.66 5.50 5.46 5.38 5.36 5.34 5.30 5.24 5.14 5.13 4.97 4.96 4.67 4.59 3.16 -1.01 -1.05
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Finland Greece Albania Malta Isle of Man Faroe Islands Ireland Belgium Iceland Estonia Belarus Slovakia Czech Republic Monaco Russia Lithuania Vatican City the United Kingdom Italy Andorra Latvia Croatia Switzerland Hungary Austria San Marino Poland Liechtenstein Guernsey Jersey Ukraine France Luxembourg Gibraltar Denmark Moldova Georgia Germany Kazakhstan Bulgaria Spain Norway Slovenia Sweden Netherlands Cyprus Portugal
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
74
Pretax Income Countries
Value (total revenue = 100)
Rank
Percentile
14.40 11.17 11.09 9.58 9.32 9.26 8.64 8.62 8.41 8.38 8.24 7.30 7.18 7.00 6.99 6.94 6.88 6.76 6.32 6.21 6.06 5.77 5.20 5.19 4.95 4.68 4.54 4.25 4.21 4.21 4.07 3.91 3.75 3.68 3.44 3.14 2.64 2.30 2.03 1.89 1.58 0.43 -1.06 -1.17 -1.48
1 3 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30 31 32 33 34 35 36 37 38 39 40 41 42 43 45 46 47 49 51 53
98.11 94.34 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 15.09 13.21 11.32 7.55 3.77 0.00
Region
_________________________________________________________________________________________________________
Thailand Taiwan Brazil Finland Canada South Africa Turkey Mexico New Zealand Australia Hong Kong India Chile China USA Israel Ireland Pakistan Greece Belgium Singapore the United Kingdom South Korea Malaysia Austria Russia Italy Switzerland Norway Hungary Germany France Spain Luxembourg Sweden Denmark Peru Japan Czech Republic Argentina Netherlands Poland Portugal Indonesia Philippines
Asia Asia Latin America Europe North America Africa the Middle East Latin America Oceana Oceana Asia Asia Latin America Asia North America the Middle East Europe the Middle East Europe Europe Asia Europe Asia Asia Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Latin America Asia Europe Latin America Europe Europe Europe Asia Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
75
Pretax Income (Communications Equipment) Countries in Europe
Value (total revenue = 100)
Rank
Percentile
9.58 8.21 7.90 7.53 7.32 7.06 7.06 6.88 6.32 6.21 5.88 5.86 5.78 5.77 5.67 5.01 4.95 4.90 4.78 4.78 4.78 4.77 4.68 4.67 4.58 4.54 4.25 4.21 4.21 4.07 3.97 3.91 3.78 3.75 3.68 3.60 3.54 3.52 3.44 3.14 2.31 2.03 1.92 1.92 1.58 0.43 0.38 0.37 0.37 -1.01 -1.06
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Finland Romania Faroe Islands Bosnia & Herzegovina Macedonia Iceland Serbia & Montenegro Ireland Greece Belgium Monaco Malta Isle of Man the United Kingdom Andorra Estonia Austria San Marino Jersey Guernsey Belarus Slovakia Russia Lithuania Vatican City Italy Switzerland Norway Hungary Germany Liechtenstein France Ukraine Spain Luxembourg Gibraltar Georgia Slovenia Sweden Denmark Albania Czech Republic Latvia Croatia Netherlands Poland Moldova Kazakhstan Bulgaria Cyprus Portugal
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
76
Income Taxes Countries
Value (total revenue = 100)
Rank
Percentile
3.35 3.24 3.15 3.10 2.98 2.79 2.70 2.70 2.60 2.56 2.26 2.09 1.98 1.74 1.59 1.46 1.41 1.36 1.33 1.30 1.27 1.23 1.20 1.19 1.17 1.11 1.10 1.10 1.07 1.07 1.07 1.05 1.00 0.99 0.97 0.95 0.94 0.40 0.32 0.02 -0.02 -0.97
1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 25 27 28 30 31 32 33 34 35 36 37 38 39 40 41 42 44 47 48 50
98.00 96.00 94.00 92.00 90.00 88.00 86.00 84.00 82.00 80.00 76.00 74.00 72.00 70.00 68.00 66.00 64.00 62.00 60.00 58.00 56.00 54.00 50.00 46.00 44.00 40.00 38.00 36.00 34.00 32.00 30.00 28.00 26.00 24.00 22.00 20.00 18.00 16.00 12.00 6.00 4.00 0.00
Region
_________________________________________________________________________________________________________
Australia Canada Norway Greece Belgium South Africa Turkey Mexico Finland Italy USA the United Kingdom India Austria Brazil Thailand Netherlands Malaysia Japan South Korea France Switzerland Chile Germany Russia Israel Ireland Taiwan Sweden Luxembourg Singapore Hungary Denmark Spain New Zealand Hong Kong China Philippines Indonesia Portugal Poland Peru
Oceana North America Europe Europe Europe Africa the Middle East Latin America Europe Europe North America Europe Asia Europe Latin America Asia Europe Asia Asia Asia Europe Europe Latin America Europe Europe the Middle East Europe Asia Europe Europe Asia Europe Europe Europe Oceana Asia Asia Asia Asia Europe Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
77
Income Taxes (Communications Equipment) Countries in Europe
Value (total revenue = 100)
Rank
Percentile
3.15 3.10 2.98 2.87 2.83 2.60 2.58 2.57 2.56 2.36 2.29 2.29 2.21 2.09 1.74 1.73 1.68 1.68 1.41 1.27 1.25 1.23 1.19 1.19 1.19 1.17 1.17 1.15 1.10 1.07 1.07 1.05 1.03 1.00 1.00 0.99 0.95 0.92 0.91 0.90 0.89 0.02 0.02 -0.02 -0.02 -0.02 -0.02 -0.85
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
97.92 95.83 93.75 91.67 89.58 87.50 85.42 83.33 81.25 79.17 77.08 75.00 72.92 70.83 68.75 66.67 64.58 62.50 60.42 58.33 56.25 54.17 52.08 50.00 47.92 45.83 43.75 41.67 39.58 37.50 35.42 33.33 31.25 29.17 27.08 25.00 22.92 20.83 18.75 16.67 14.58 12.50 10.42 8.33 6.25 4.17 2.08 0.00
_________________________________________________________________________________________________________
Norway Greece Belgium Malta Isle of Man Finland Vatican City Romania Italy Bosnia & Herzegovina Macedonia Iceland Serbia & Montenegro the United Kingdom Austria San Marino Jersey Guernsey Netherlands France Estonia Switzerland Belarus Slovakia Germany Russia Lithuania Liechtenstein Ireland Sweden Luxembourg Hungary Monaco Andorra Denmark Spain Ukraine Slovenia Faroe Islands Gibraltar Georgia Portugal Cyprus Bulgaria Kazakhstan Moldova Poland Albania
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.5 3.5.1
78
FINANCIAL RETURNS IN FINLAND: PROFITABILITY RATIOS Overview
In this chapter we consider additional financial ratios estimated for firms involved in communications equipment operating in Finland benchmarked against global averages. The chapter begins by defining relevant terms. Estimates are then presented for the proto-typical firm operating in Finland compared to average global benchmarks. For ratios where there are large deviations between the average firm in Finland and the benchmarks, graphics are provided. Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key ratios are highlighted across countries in the comparison group.
3.5.2
Ratios – Definitions of Terms
The following definitions are provided for those less familiar with financial ratio analysis. As this chapter deals with the global benchmarking of ratios, only definitions covering certain terms used in this chapter’s tables and graphs are provided here . The glossary below reflects commonly accepted definitions across various countries and official sources. •
Accounts Receivables Days. The number of days' receivable sales generally correlates to the amount of the accounts receivables to the average daily sales on account. Accounts receivables days is often determined by dividing the gross receivables by (net sales/365).
•
Cash Earnings Return On Equity (%). Cash earnings return on equity generally measures the return of revenues to the shareholders. This ratio is generally calculated by dividing (net income before nonrecurring items minus preferred dividends) by the average common equity.
•
Cash Flow. Cash flow is generally defined as being equal to the company's net income plus the charge-off amounts for depreciation, depletion, amortization, extraordinary charges to reserves. These are bookkeeping deductions which are not paid out as cash.
•
Current Ratio. The current ratio is generally defined as a ratio of liquidity measuring the ability of a business to pay its current obligations when due. The current ratio is generally calculated by dividing total current assets by total current liabilities. Managers and lenders often want the current ratio to be 2.00 or greater. This ratio is often seen as an indication of short-term debt-paying ability. The higher the ratio, the more liquid the company.
•
Dividend Payout (% Earnings) - Total Dividends (%). The dividend payout ratio is generally used to measure the amount of current earnings per common share which are paid out in dividends. This ratio is generally determined by dividing dividends per common share by diluted earnings per share.
•
Fixed Charge Coverage Ratio. The fixed charge coverage ratio is generally seen as an indication of the company's ability to cover its fixed charges. This ratio is typically determined by dividing recurring earnings excluding interest expense, tax expense, equity earnings, and minority earnings plus interest from rentals by interest expense including capitalized interest and interest from rentals.
•
Gross Profit Margin (%). The gross profit margin is typically defined to equals the difference, in percent, between net sales revenue and the cost of goods sold.
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Financial Indicators
79
•
Inventories (# of Days) Held. Inventory days held is generally determined by dividing the ending inventory by (the cost of goods held/365). The number of days held results in the average daily cost of goods held.
•
Inventory Turnover (%). Inventory turnover is used as a measure of the balance of inventory. It generally compares the amount of inventory with the total sales for the year. The ratio can reflect both on the quality of the inventory and the efficiency of management. Typically, the higher the turnover rate, the greater the likelihood that profits would be larger and less working capital bound up in inventory.
•
Net Margin (%). The net margin is the ratio of net income dollars generated by each dollar of sales.
•
Operating Profit Margin (%). Operating profit margin percent is the ratio of operating profit to net sales. Operating profit (loss) is income or loss before taxes calculated by the difference between total revenues and total expense disregarding the effects of any extraordinary transactions.
•
Quick Ratio. The quick ratio, also commonly known as the “acid test ratio”, is a refined current ratio and is often seen as a more conservative measure of liquidity. The quick ratio is generally determined by dividing cash and equivalents plus trade receivables by total current liabilities. The ratio shows the degree to which a company's current liabilities can be covered by the most liquid current assets. Financial management texts generally conclude that any value of less than 1 to 1 implies a reciprocal dependency on inventory or other current assets to liquidate short-term debt.
•
Reinvestment Rate - Total (%). The reinvestment rate is typically defined as the rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that security.
•
Return on Assets (%). Return on assets is generally used to measure a company's ability to use assets to create profit.
•
Return on Equity - Total (%). The return on total equity ratio is often seen to reflect the profitability of the company's operations after income taxes. Return on equity is often considered to be a good measure of the company's profitability. Tax laws and tax loss carryovers can affect the net income and therefore can also affect the return on equity.
•
Return on Invested Capital (%). The ratio of return on invested capital is typically defined as an evaluation of earnings performance without regard to the method of financing. This ratio measures the earnings on investment and is an indication of how well the company utilizes its asset base. Return on investment is a type of return on capital, therefore this ratio can be an indication of the company’s ability to reward investors who provide long-term funds and to attract future investors.
•
Tax Rate (%). The tax rate is typically defined as the average rate of domestic tax owed to government by the company.
•
Working Capital. Net working capital equals the difference between total current assets and total current liabilities. Working capital often reflects a company's ability to expand volume and meet obligations. Since growth is usually one goal, the amount of working capital on this year's balance sheet should be greater than that of the previous year's. This is an efficiency, or turnover, ratio which benchmarks the rate at which current assets less current liabilities are used by the company in making sales. A low ratio can indicate a less profitable use of working capital in making sales. On the other hand, a very high ratio can indicate the company is wasting current assets which could be more efficiently deployed in production and in increasing sales and profits; or that the company my be undercapitalized, and thus vulnerable to liquidity problems in a period of weak business conditions.
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Financial Indicators
3.5.3
80
Ratio Structure: Outlook
Using the methodology described in the introduction, the following table summarizes ratio structure benchmarks for firms involved in communications equipment in Finland. All figures are current-year projections for companies operating in Finland based on latest financial results available. Ratios Finland Europe World Avg. _________________________________________________________________________________________________________
Profitability Return on Equity - Total (%) Reinvestment Rate - Total (%) Return on Assets (%) Return on Invested Capital (%) Cash Earnings Return On Equity (%) Cash Flow % Sales Cost Goods Sold / Sales (%) Gross Profit Margin (%) Selling, General & Administrative Expense/Net Sales (%) Research & Development / Net Sales (%) Operating Profit Margin (%) Operating Inc / Total Capital (%) Pretax Margin (%) Tax Rate (%) Net Margin (%) Total Asset Turnover (X) th USD Asset Utilization Inventory Turnover (%) Net Sales % Working Capital Capital Expenditure % Gross Fixed Assets Capital Expenditure % Total Assets Capital Expenditure % Total Sales Accumulated Depreciation % Gross Fixed Assets Leverage Total Debt % Total Capital Long Term Debt % Total Capital Equity % Total Capital Fixed Charge Coverage Ratio Dividend Payout (% Earnings) - Total Dividends Fixed Assets % Common Equity Working Capital % Total Capital Liquidity Quick Ratio Current Ratio Inventories % Total Current Assets Accounts Receivables Days Inventories (# of Days) Held
19.63 12.10 10.32 15.10 38.43 12.49 77.10 17.83 6.73 4.30 5.70 18.79 9.58 24.74 6.92 1.35
7.81 4.82 5.91 9.20 26.62 8.73 68.06 20.17 14.63 4.04 4.20 11.05 4.27 67.30 2.88 1.00
12.18 8.44 7.68 11.07 26.50 9.64 66.35 18.89 8.76 1.31 6.55 15.65 5.63 34.30 4.27 0.95
7.23 8.45 12.41 4.52 3.58 46.36
5.63 4.55 10.77 4.96 5.08 49.03
5.07 2.05 9.08 4.37 5.39 39.31
28.97 22.41 76.60 24.85 26.56 49.76 39.31
26.55 16.20 74.56 283.67 13.49 72.39 40.31
25.87 13.04 75.65 90.19 18.07 65.96 32.46
1.25 1.87 28.30 70.36 68.06
1.44 2.04 27.17 87.76 87.13
1.26 1.88 28.63 94.56 92.91
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.5.4
81
Large Variances: Ratios
The following graphics summarize for communications equipment the large ratio structure gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.
Gap: Return on Equity - Total (%) 20
19.63
15
12.18 7.81
10
7.45
5 0 Finland
Europe
World Average
Gap
Gap: Cash Earnings Return On Equity (%) 40
38.43 26.62
30
26.5
20
11.93
10 0 Finland
Europe
World Average
Gap
Gap: Cost Goods Sold / Sales (%) 80
77.1
68.06
66.35
60 40 20
10.75
0 Finland
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Europe
World Average
Gap
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Financial Indicators
82
Gap: Tax Rate (%) 80
67.3
60 40
34.3
24.74
20 0
-9.56
-20 Finland
Europe
World Average
Gap
Gap: Accumulated Depreciation % Gross Fixed Assets 50
46.36
49.03 39.31
40 30 20
7.05
10 0 Finland
Europe
World Average
Gap
Gap: Long Term Debt % Total Capital 25
22.41
20
16.2 13.04
15
9.37
10 5 0 Finland
Europe
World Average
Gap
Gap: Fixed Charge Coverage Ratio 283.67
300 200 100
90.19 24.85
0 -65.34
-100 Finland
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World Average
Gap
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Financial Indicators
83
Gap: Dividend Payout (% Earnings) - Total Dividends 30
26.56
25 18.07
20
13.49
15
8.49
10 5 0 Finland
Europe
World Average
Gap
Gap: Fixed Assets % Common Equity 72.39
80 60
65.96
49.76
40 20 0 -16.2
-20 Finland
Europe
World Average
Gap
Gap: Accounts Receivables Days 100 80 60 40 20 0 -20 -40
87.76
94.56
70.36
-24.2 Finland
Europe
World Average
Gap
Gap: Inventories (# of Days) Held 100 80 60 40 20 0 -20 -40
87.13
92.91
68.06
-24.85 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
3.5.5
84
Key Percentiles and Rankings
We now consider the distribution of financial ratios for communications equipment using ranks and percentiles. What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to financial ratios. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a few key financial ratios are highlighted in additional tables. Ratios
Finland
Rank of Total
Percentile
19.63 12.10 10.32 15.10 38.43 12.49 77.10 17.83 6.73 4.30 5.70 18.79 9.58 24.74 6.92 1.35
7 of 53 13 of 53 8 of 53 12 of 53 10 of 53 12 of 53 7 of 52 40 of 52 43 of 44 15 of 39 27 of 53 14 of 53 6 of 53 28 of 47 8 of 53 8 of 53
86.79 75.47 84.91 77.36 81.13 77.36 86.54 23.08 2.27 61.54 49.06 73.58 88.68 40.43 84.91 84.91
7.23 8.45 12.41 4.52 3.58 46.36
9 of 53 8 of 53 20 of 48 33 of 53 41 of 53 24 of 47
83.02 84.91 58.33 37.74 22.64 48.94
28.97 22.41 76.60 24.85 26.56 49.76 39.31
18 of 53 8 of 51 32 of 53 17 of 53 8 of 47 40 of 53 24 of 53
66.04 84.31 39.62 67.92 82.98 24.53 54.72
1.25 1.87 28.30 70.36 68.06
27 of 53 27 of 53 23 of 53 38 of 53 38 of 53
49.06 49.06 56.60 28.30 28.30
_________________________________________________________________________________________________________
Profitability Return on Equity - Total (%) Reinvestment Rate - Total (%) Return on Assets (%) Return on Invested Capital (%) Cash Earnings Return On Equity (%) Cash Flow % Sales Cost Goods Sold / Sales (%) Gross Profit Margin (%) Selling, General & Administrative Expense/Net Sales (%) Research & Development / Net Sales (%) Operating Profit Margin (%) Operating Inc / Total Capital (%) Pretax Margin (%) Tax Rate (%) Net Margin (%) Total Asset Turnover (X) th USD Asset Utilization Inventory Turnover (%) Net Sales % Working Capital Capital Expenditure % Gross Fixed Assets Capital Expenditure % Total Assets Capital Expenditure % Total Sales Accumulated Depreciation % Gross Fixed Assets Leverage Total Debt % Total Capital Long Term Debt % Total Capital Equity % Total Capital Fixed Charge Coverage Ratio Dividend Payout (% Earnings) - Total Dividends Fixed Assets % Common Equity Working Capital % Total Capital Liquidity Quick Ratio Current Ratio Inventories % Total Current Assets Accounts Receivables Days Inventories (# of Days) Held
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
85
Gross Profit Margin (%) Countries
Value
Rank
Percentile
Israel Ireland USA Canada Switzerland Greece Chile Philippines Australia Italy Turkey Mexico Brazil Norway the United Kingdom Luxembourg South Africa Peru Indonesia Japan Netherlands New Zealand Hong Kong Sweden Taiwan Poland China Austria Belgium Singapore Spain Thailand Denmark Germany Malaysia Finland South Korea Russia France Hungary India Czech Republic Argentina Portugal
53.47 53.02 35.12 30.91 30.75 30.53 30.48 30.45 30.22 30.06 29.86 29.77 29.06 27.46 27.07 26.59 26.12 24.09 24.08 23.64 23.23 23.17 22.70 22.69 22.43 21.73 21.06 20.78 20.58 20.48 20.23 20.20 20.04 20.04 18.97 17.83 16.70 15.05 13.54 13.52 13.16 2.31 2.15 -1.54
1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 20 21 22 23 24 25 26 28 29 30 31 32 33 34 35 36 37 38 40 43 46 47 48 49 50 51 52
98.08 96.15 94.23 92.31 90.38 88.46 86.54 84.62 82.69 80.77 78.85 76.92 75.00 71.15 69.23 67.31 65.38 61.54 59.62 57.69 55.77 53.85 51.92 50.00 46.15 44.23 42.31 40.38 38.46 36.54 34.62 32.69 30.77 28.85 26.92 23.08 17.31 11.54 9.62 7.69 5.77 3.85 1.92 0.00
Region
_________________________________________________________________________________________________________
the Middle East Europe North America North America Europe Europe Latin America Asia Oceana Europe the Middle East Latin America Latin America Europe Europe Europe Africa Latin America Asia Asia Europe Oceana Asia Europe Asia Europe Asia Europe Europe Asia Europe Asia Europe Europe Asia Europe Asia Europe Europe Europe Asia Europe Latin America Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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©2007 Icon Group International, Inc.
Financial Indicators
86
Gross Profit Margin (%) (Communications Equipment) Countries in Europe
Value
Rank
Percentile
Ireland Iceland Switzerland Greece Vatican City Italy Liechtenstein Romania Malta Isle of Man Norway the United Kingdom Luxembourg Bosnia & Herzegovina Macedonia Serbia & Montenegro Netherlands Sweden Faroe Islands Poland Albania Austria Belgium San Marino Spain Guernsey Jersey Denmark Germany Monaco Moldova Andorra Slovenia Kazakhstan Bulgaria Finland Estonia Belarus Slovakia Russia Lithuania France Hungary Ukraine Gibraltar Georgia Czech Republic Latvia Croatia Cyprus Portugal
53.02 35.48 30.75 30.53 30.30 30.06 28.70 28.37 28.30 27.93 27.46 27.07 26.59 26.03 25.30 24.41 23.23 22.69 21.77 21.73 21.03 20.78 20.58 20.58 20.23 20.07 20.07 20.04 20.04 19.86 19.53 19.15 18.99 18.80 18.76 17.83 16.10 15.36 15.33 15.05 15.01 13.54 13.52 12.16 11.56 11.38 2.31 2.19 2.19 -1.47 -1.54
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
87
Pretax Margin (%) Countries
Value
Rank
Percentile
Thailand Taiwan Brazil Finland Canada South Africa Turkey Mexico New Zealand Australia Hong Kong India Chile China USA Israel Ireland Pakistan Greece Belgium Singapore the United Kingdom South Korea Malaysia Austria Russia Italy Switzerland Norway Hungary Germany France Spain Luxembourg Sweden Denmark Peru Japan Czech Republic Argentina Netherlands Poland Portugal Indonesia Philippines
14.40 11.17 11.09 9.58 9.32 9.26 8.64 8.62 8.41 8.38 8.24 7.30 7.18 7.00 6.99 6.94 6.88 6.76 6.32 6.21 6.06 5.77 5.20 5.19 4.95 4.68 4.54 4.25 4.21 4.21 4.07 3.91 3.75 3.68 3.44 3.14 2.64 2.30 2.03 1.89 1.58 0.43 -1.06 -1.17 -1.48
1 3 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30 31 32 33 34 35 36 37 38 39 40 41 42 43 45 46 47 49 51 53
98.11 94.34 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 15.09 13.21 11.32 7.55 3.77 0.00
Region
_________________________________________________________________________________________________________
Asia Asia Latin America Europe North America Africa the Middle East Latin America Oceana Oceana Asia Asia Latin America Asia North America the Middle East Europe the Middle East Europe Europe Asia Europe Asia Asia Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Latin America Asia Europe Latin America Europe Europe Europe Asia Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
88
Pretax Margin (%) (Communications Equipment) Countries in Europe
Value
Rank
Percentile
Finland Romania Faroe Islands Bosnia & Herzegovina Macedonia Iceland Serbia & Montenegro Ireland Greece Belgium Monaco Malta Isle of Man the United Kingdom Andorra Estonia Austria San Marino Jersey Guernsey Belarus Slovakia Russia Lithuania Vatican City Italy Switzerland Norway Hungary Germany Liechtenstein France Ukraine Spain Luxembourg Gibraltar Georgia Slovenia Sweden Denmark Albania Czech Republic Latvia Croatia Netherlands Poland Moldova Kazakhstan Bulgaria Cyprus Portugal
9.58 8.21 7.90 7.53 7.32 7.06 7.06 6.88 6.32 6.21 5.88 5.86 5.78 5.77 5.67 5.01 4.95 4.90 4.78 4.78 4.78 4.77 4.68 4.67 4.58 4.54 4.25 4.21 4.21 4.07 3.97 3.91 3.78 3.75 3.68 3.60 3.54 3.52 3.44 3.14 2.31 2.03 1.92 1.92 1.58 0.43 0.38 0.37 0.37 -1.01 -1.06
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
89
Quick Ratio Countries
Value
Rank
Percentile
2.80 2.35 2.27 2.12 2.11 2.09 2.07 1.91 1.91 1.90 1.88 1.87 1.86 1.82 1.77 1.72 1.67 1.62 1.53 1.53 1.51 1.49 1.48 1.36 1.34 1.25 1.21 1.20 1.19 1.19 1.16 1.16 1.15 1.14 1.14 1.13 1.09 1.08 1.06 1.06 1.00 0.92 0.84 0.75 0.49
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 41 42 43 45 48 50 52
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 22.64 20.75 18.87 15.09 9.43 5.66 1.89
Region
_________________________________________________________________________________________________________
USA Malaysia Czech Republic Argentina Norway Israel Ireland New Zealand Canada Spain Portugal Hong Kong Japan Germany Switzerland Austria Singapore the United Kingdom China Luxembourg Taiwan South Korea Belgium Brazil Russia Finland Hungary Sweden Italy France Australia Thailand Turkey Mexico India Poland Netherlands Greece Philippines South Africa Denmark Chile Indonesia Pakistan Peru
North America Asia Europe Latin America Europe the Middle East Europe Oceana North America Europe Europe Asia Asia Europe Europe Europe Asia Europe Asia Europe Asia Asia Europe Latin America Europe Europe Europe Europe Europe Europe Oceana Asia the Middle East Latin America Asia Europe Europe Europe Asia Africa Europe Latin America Asia the Middle East Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
90
Quick Ratio (Communications Equipment) Countries in Europe
Value
Rank
Percentile
2.83 2.27 2.16 2.16 2.11 2.07 1.90 1.88 1.82 1.80 1.80 1.78 1.77 1.72 1.71 1.66 1.66 1.65 1.62 1.61 1.56 1.53 1.48 1.44 1.37 1.37 1.34 1.34 1.25 1.21 1.20 1.20 1.19 1.19 1.13 1.09 1.09 1.09 1.08 1.03 1.02 1.01 1.00 1.00 1.00 0.99 0.97 0.97 0.97 0.94 0.43
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Iceland Czech Republic Latvia Croatia Norway Ireland Spain Portugal Germany Cyprus Faroe Islands Slovenia Switzerland Austria San Marino Guernsey Jersey Liechtenstein the United Kingdom Monaco Andorra Luxembourg Belgium Estonia Belarus Slovakia Russia Lithuania Finland Hungary Vatican City Sweden Italy France Poland Netherlands Romania Ukraine Greece Gibraltar Georgia Moldova Malta Bosnia & Herzegovina Denmark Isle of Man Kazakhstan Macedonia Bulgaria Serbia & Montenegro Albania
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
91
Current Ratio Countries
Value
Rank
Percentile
4.05 3.86 3.60 3.15 2.90 2.80 2.74 2.56 2.46 2.44 2.42 2.40 2.39 2.38 2.35 2.33 2.27 2.13 2.13 2.09 2.08 2.06 2.03 2.01 2.00 1.91 1.87 1.85 1.83 1.80 1.76 1.76 1.72 1.72 1.71 1.67 1.64 1.63 1.57 1.52 1.50 1.46 1.46 1.34 1.15
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 29 30 31 32 33 34 35 36 37 38 39 41 42 43 45 46 48 50
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 22.64 20.75 18.87 15.09 13.21 9.43 5.66
Region
_________________________________________________________________________________________________________
USA Czech Republic Argentina Malaysia Canada Germany Norway Spain Portugal Japan Switzerland Israel New Zealand Ireland Hong Kong Austria the United Kingdom Taiwan Singapore Luxembourg Sweden Belgium South Korea China Brazil India Finland Chile Russia Italy Denmark Thailand Turkey France Mexico Australia Hungary South Africa Pakistan Netherlands Poland Greece Philippines Peru Indonesia
North America Europe Latin America Asia North America Europe Europe Europe Europe Asia Europe the Middle East Oceana Europe Asia Europe Europe Asia Asia Europe Europe Europe Asia Asia Latin America Asia Europe Latin America Europe Europe Europe Asia the Middle East Europe Latin America Oceana Europe Africa the Middle East Europe Europe Europe Asia Latin America Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
92
Current Ratio (Communications Equipment) Countries in Europe
Value
Rank
Percentile
4.09 3.86 3.66 3.66 2.80 2.74 2.56 2.46 2.42 2.40 2.38 2.35 2.33 2.30 2.27 2.26 2.25 2.25 2.25 2.09 2.08 2.07 2.06 1.99 1.95 1.87 1.86 1.86 1.83 1.82 1.81 1.80 1.76 1.72 1.64 1.63 1.52 1.50 1.50 1.48 1.46 1.45 1.40 1.40 1.38 1.35 1.35 1.34 1.30 1.30 1.17
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Iceland Czech Republic Latvia Croatia Germany Norway Spain Portugal Switzerland Slovenia Ireland Cyprus Austria San Marino the United Kingdom Liechtenstein Faroe Islands Jersey Guernsey Luxembourg Sweden Monaco Belgium Andorra Estonia Finland Belarus Slovakia Russia Lithuania Vatican City Italy Denmark France Hungary Romania Netherlands Poland Bosnia & Herzegovina Ukraine Greece Macedonia Serbia & Montenegro Gibraltar Georgia Malta Moldova Isle of Man Kazakhstan Bulgaria Albania
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
93
Inventories % Total Current Assets Countries
Value
Rank
Percentile
Peru Pakistan Chile Czech Republic Argentina Sweden Denmark Germany India Canada Italy Australia South Africa Norway the United Kingdom Thailand Belgium Taiwan Brazil Switzerland USA Finland France South Korea Netherlands Austria Turkey Mexico Spain Luxembourg Malaysia China Greece New Zealand Russia Hong Kong Poland Portugal Singapore Hungary Philippines Japan Indonesia Israel Ireland
57.66 50.12 46.87 42.20 39.31 38.67 38.16 36.85 35.92 35.47 35.15 35.06 34.43 33.28 32.03 30.98 30.63 29.77 29.33 29.18 28.55 28.30 28.23 27.45 27.44 27.33 26.61 26.54 25.34 25.24 25.23 25.16 25.09 24.81 24.73 24.31 23.65 23.48 22.65 22.22 21.87 21.53 17.29 13.85 13.74
1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 31 32 33 35 36 37 38 40 42 43 44 45 46 47 49 51 52
98.11 96.23 94.34 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 41.51 39.62 37.74 33.96 32.08 30.19 28.30 24.53 20.75 18.87 16.98 15.09 13.21 11.32 7.55 3.77 1.89
Region
_________________________________________________________________________________________________________
Latin America the Middle East Latin America Europe Latin America Europe Europe Europe Asia North America Europe Oceana Africa Europe Europe Asia Europe Asia Latin America Europe North America Europe Europe Asia Europe Europe the Middle East Latin America Europe Europe Asia Asia Europe Oceana Europe Asia Europe Europe Asia Europe Asia Asia Asia the Middle East Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
94
Inventories % Total Current Assets (Communications Equipment) Countries in Europe
Value
Rank
Percentile
Albania Czech Republic Latvia Croatia Sweden Denmark Germany Vatican City Italy Norway the United Kingdom Belgium Switzerland Iceland Finland France Netherlands Austria Liechtenstein San Marino Estonia Jersey Guernsey Spain Romania Belarus Luxembourg Slovakia Greece Russia Lithuania Slovenia Poland Portugal Faroe Islands Malta Bosnia & Herzegovina Isle of Man Macedonia Cyprus Hungary Monaco Serbia & Montenegro Moldova Andorra Kazakhstan Bulgaria Ukraine Gibraltar Georgia Ireland
50.33 42.20 40.05 40.04 38.67 38.16 36.85 35.44 35.15 33.28 32.03 30.63 29.18 28.85 28.30 28.23 27.44 27.33 27.23 27.07 26.46 26.40 26.40 25.34 25.28 25.25 25.24 25.19 25.09 24.73 24.67 23.79 23.65 23.48 23.31 23.25 23.20 22.94 22.55 22.48 22.22 21.96 21.75 21.26 21.18 20.46 20.42 19.98 19.00 18.71 13.74
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
95
Accounts Receivables Days Countries
Value
Rank
Percentile
Greece Italy China Malaysia India Peru Poland France Czech Republic Belgium Japan Argentina Portugal Turkey Mexico Spain Austria Thailand Switzerland New Zealand Taiwan Netherlands Hong Kong South Africa Australia Singapore Norway Pakistan Denmark South Korea Germany Luxembourg the United Kingdom Chile Finland Israel Ireland Russia Sweden Philippines USA Canada Hungary Brazil Indonesia
146.93 136.93 134.59 127.67 116.04 112.07 111.64 109.94 106.71 105.78 100.62 99.40 99.07 95.86 95.60 93.40 90.24 88.39 86.81 81.62 80.87 80.23 79.98 79.66 79.59 79.59 78.26 76.49 75.83 75.30 75.23 75.07 75.05 71.23 70.36 70.23 69.65 67.86 65.11 64.78 64.78 62.08 60.97 53.56 51.22
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 22 23 24 25 26 27 28 29 30 31 32 33 34 35 37 38 39 40 43 44 45 46 47 48 50 51
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 64.15 62.26 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 30.19 28.30 26.42 24.53 18.87 16.98 15.09 13.21 11.32 9.43 5.66 3.77
Region
_________________________________________________________________________________________________________
Europe Europe Asia Asia Asia Latin America Europe Europe Europe Europe Asia Latin America Europe the Middle East Latin America Europe Europe Asia Europe Oceana Asia Europe Asia Africa Oceana Asia Europe the Middle East Europe Asia Europe Europe Europe Latin America Europe the Middle East Europe Europe Europe Asia North America North America Europe Latin America Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
96
Accounts Receivables Days (Communications Equipment) Countries in Europe
Value
Rank
Percentile
Greece Vatican City Italy Malta Isle of Man Poland France Czech Republic Belgium Latvia Croatia Moldova Portugal Albania Kazakhstan Bulgaria Cyprus Spain Romania Austria San Marino Slovenia Guernsey Jersey Switzerland Bosnia & Herzegovina Macedonia Liechtenstein Netherlands Serbia & Montenegro Norway Monaco Faroe Islands Denmark Germany Luxembourg the United Kingdom Andorra Estonia Finland Ireland Belarus Slovakia Russia Lithuania Iceland Sweden Hungary Ukraine Gibraltar Georgia
146.93 138.03 136.93 136.18 134.38 111.64 109.94 106.71 105.78 101.29 101.25 100.38 99.07 97.83 96.60 96.42 94.83 93.40 91.08 90.24 89.38 87.68 87.14 87.14 86.81 83.58 81.23 81.00 80.23 78.36 78.26 77.17 76.69 75.83 75.23 75.07 75.05 74.42 72.60 70.36 69.65 69.29 69.13 67.86 67.70 65.44 65.11 60.97 54.83 52.13 51.33
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
97
Inventories (# of Days) Held Countries
Value
Rank
Percentile
Italy Peru Czech Republic Argentina China USA Belgium Chile Canada India Denmark Switzerland Malaysia Pakistan Germany Taiwan Sweden Luxembourg Spain France South Africa the United Kingdom Greece Austria Turkey Mexico Brazil Israel Ireland Australia Thailand Japan Philippines Netherlands South Korea Finland New Zealand Hong Kong Singapore Russia Norway Poland Indonesia Hungary Portugal
338.72 232.94 126.61 117.93 114.31 107.23 102.39 101.65 99.97 99.49 99.29 98.49 98.48 96.90 96.64 93.88 87.21 85.18 84.69 83.68 83.43 81.10 81.01 78.28 78.11 77.90 77.65 77.59 76.95 76.11 75.94 74.74 71.48 71.15 69.01 68.06 67.04 65.69 62.67 62.19 60.56 56.62 56.52 55.87 52.13
1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 35 36 37 38 39 40 43 44 46 48 49 50 52
98.11 96.23 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 33.96 32.08 30.19 28.30 26.42 24.53 18.87 16.98 13.21 9.43 7.55 5.66 1.89
Region
_________________________________________________________________________________________________________
Europe Latin America Europe Latin America Asia North America Europe Latin America North America Asia Europe Europe Asia the Middle East Europe Asia Europe Europe Europe Europe Africa Europe Europe Europe the Middle East Latin America Latin America the Middle East Europe Oceana Asia Asia Asia Europe Asia Europe Oceana Asia Asia Europe Europe Europe Asia Europe Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
98
Inventories (# of Days) Held (Communications Equipment) Countries in Europe
Value
Rank
Percentile
Vatican City Italy Albania Czech Republic Latvia Croatia Iceland Belgium Denmark Switzerland Germany Liechtenstein Sweden Luxembourg Spain France the United Kingdom Greece Slovenia Austria San Marino Ireland Guernsey Jersey Malta Romania Isle of Man Netherlands Bosnia & Herzegovina Finland Estonia Macedonia Serbia & Montenegro Belarus Slovakia Faroe Islands Russia Lithuania Monaco Norway Andorra Poland Hungary Portugal Moldova Ukraine Cyprus Kazakhstan Bulgaria Gibraltar Georgia
341.46 338.72 203.34 126.61 120.17 120.12 108.33 102.39 99.29 98.49 96.64 91.91 87.21 85.18 84.69 83.68 81.10 81.01 79.51 78.28 77.54 76.95 75.60 75.60 75.08 74.22 74.09 71.15 68.11 68.06 66.53 66.20 63.85 63.50 63.35 62.99 62.19 62.04 60.77 60.56 58.61 56.62 55.87 52.13 50.91 50.24 49.90 48.99 48.90 47.77 47.03
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.6 3.6.1
99
PRODUCTIVITY IN FINLAND: ASSET-LABOR RATIOS Overview
In this chapter, we consider numerous asset-labor ratios for communications equipment in Finland benchmarked against global averages. Productivity and utilization ratios are presented for companies oprating in Finland and the average global benchmarks for communications equipment. For ratios where there are large deviations between Finland and the benchmarks, graphics are provided (sometimes referred to as a “gap” analysis). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain asset-labor ratios are highlighted across countries in the comparison group. In the case of asset-labor ratios, this report maintains comparability over time and across countries by using a common currency (the US dollar) and relates each measure to a “per employee basis”. Ratios are projected using raw financial statistics and, as ratios, are therefore comparable. Given a country’s human resource ratios, the resulting figures are benchmarked across regional and global averages. We then report the larger asset-labor ratio gaps for communications equipment that Finland has vis-à-vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firm’s relative incentive to invest locally. All figures are projections, so due caution is required.
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©2007 Icon Group International, Inc.
Financial Indicators
3.6.2
100
Asset to Labor: Outlook
The following tables and graphs are prepared using the methodology described at the beginning of this section. All units are in thousands of US dollars per employee. All figures are current-year projections for communications equipment in Finland based on latest financial results available. Labor-asset Ratios ($k/employee) Finland Europe World Avg. _________________________________________________________________________________________________________
Cash & Short Term Investments Cash Short Term Investments Receivables (Net) Total Inventories Raw Materials Work in Process Finished Goods Progress Payments & Other Prepaid Expenses Other Current Assets Current Assets - Total Long Term Receivables Investments in Unconsolidated Subsidiaries Other Investments Property Plant and Equipment - Net Property Plant and Equipment - Gross Land Buildings Machinery & Equipment Other Property Plant & Equipment Accumulated Depreciation - Total Accumulated Depreciation - Buildings Accumulated Depreciation -Machinery & Equipment Accumulated Depreciation - Other Prop & Equip Other Assets Deferred Charges Tangible Other Assets Intangible Other Assets Total Assets
32.30 12.71 26.30 38.43 18.63 7.88 3.02 6.57 0.18 1.82 4.95 94.92 0.24 4.36 5.70 27.07 49.87 1.40 13.00 31.65 1.78 23.44 2.70 20.94 0.21 13.75 3.35 0.28 10.24 144.23
32.70 19.82 21.60 43.18 28.20 8.13 10.00 12.19 1.64 1.89 3.15 107.92 1.30 4.79 9.63 47.42 98.33 6.93 23.18 60.23 15.79 52.28 7.31 42.39 9.52 13.93 1.02 0.92 8.25 180.69
21.33 12.46 12.27 39.86 34.95 16.62 10.48 10.50 1.33 1.80 2.39 99.52 0.77 5.01 3.95 50.37 81.35 5.41 23.72 40.38 16.86 32.67 6.34 23.46 4.76 46.01 1.59 0.87 40.74 203.64
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.6.3
101
Asset to Labor: International Gaps
The following graphics summarize for communications equipment the large labor-asset gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.
Gap: Cash & Short Term Investments ($k/employee) 40
32.7
32.3
30
21.33
20
10.97
10 0 Finland
Europe
World Average
Gap
Gap: Short Term Investments ($k/employee) 30
26.3
25
21.6
20
14.03
12.27
15 10 5 0 Finland
Europe
World Average
Gap
Gap: Total Inventories ($k/employee) 40 30 20
28.2
34.95
18.63
10 0 -10
-16.32
-20 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
102
Gap: Property Plant and Equipment - Net ($k/employee) 60
47.42
40
50.37
27.07
20 0 -20
-23.3
-40 Finland
Europe
World Average
Gap
Gap: Property Plant and Equipment - Gross ($k/employee) 98.33
100 50
81.35
49.87
0 -31.48 -50 Finland
Europe
World Average
Gap
Gap: Buildings ($k/employee) 30
23.18
20
23.72
13
10 0 -10
-10.72
-20 Finland
Europe
World Average
Gap
Gap: Other Property Plant & Equipment ($k/employee) 15.79
20 10
16.86
1.78
0 -10 -15.08 -20 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
103
Gap: Accumulated Depreciation - Total ($k/employee) 52.28
60 40
32.67
23.44
20 0
-9.23
-20 Finland
Europe
World Average
Gap
Gap: Other Assets ($k/employee) 60
46.01
40 20
13.75
13.93
0 -20 -32.26
-40 Finland
Europe
World Average
Gap
Gap: Intangible Other Assets ($k/employee) 60
40.74
40 20
10.24
8.25
0 -20
-30.5
-40 Finland
Europe
World Average
Gap
Gap: Total Assets ($k/employee) 250 200 150 100 50 0 -50 -100
144.23
180.69
203.64
-59.41 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
3.6.4
104
Key Percentiles and Rankings
We now consider the distribution of asset-labor ratios using ranks and percentiles across . What percent of countries have a productivity indicator lower or higher than Finland (what is the indicator's rank or percentile)? The table below answers this question with respect to asset-labor structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance or productivity. After the summary table below, a few key asset-labor ratios are highlighted in additional tables. Asset Structure ($k/employee)
Finland
Rank of Total
Percentile
32.30 12.71 26.30 38.43 18.63 7.88 3.02 6.57 0.18 1.82 4.95 94.92 0.24 4.36 5.70 27.07 49.87 1.40 13.00 31.65 1.78 23.44 2.70 20.94 0.21 13.75 3.35 0.28 10.24 144.23
18 of 53 30 of 48 15 of 46 23 of 53 32 of 53 18 of 47 28 of 47 29 of 47 26 of 46 13 of 37 12 of 53 26 of 53 31 of 36 15 of 48 12 of 46 40 of 53 38 of 48 28 of 41 25 of 48 31 of 48 47 of 48 32 of 47 27 of 43 23 of 43 42 of 42 22 of 53 9 of 37 24 of 33 13 of 51 26 of 53
66.04 37.50 67.39 56.60 39.62 61.70 40.43 38.30 43.48 64.86 77.36 50.94 13.89 68.75 73.91 24.53 20.83 31.71 47.92 35.42 2.08 31.91 37.21 46.51 0.00 58.49 75.68 27.27 74.51 50.94
_________________________________________________________________________________________________________
Cash & Short Term Investments Cash Short Term Investments Receivables (Net) Total Inventories Raw Materials Work in Process Finished Goods Progress Payments & Other Prepaid Expenses Other Current Assets Current Assets - Total Long Term Receivables Investments in Unconsolidated Subsidiaries Other Investments Property Plant and Equipment - Net Property Plant and Equipment - Gross Land Buildings Machinery & Equipment Other Property Plant & Equipment Accumulated Depreciation - Total Accumulated Depreciation - Buildings Accumulated Depreciation -Machinery & Equipment Accumulated Depreciation - Other Prop & Equip Other Assets Deferred Charges Tangible Other Assets Intangible Other Assets Total Assets
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
105
Cash & Short Term Investments Countries
Value ($K/employee)
Rank
Percentile
363.59 103.17 102.70 101.85 85.85 83.83 82.27 72.50 62.63 58.57 52.78 47.42 37.29 36.82 34.88 33.08 32.30 31.87 30.25 28.47 27.56 25.96 25.15 21.87 21.16 21.06 21.00 20.47 17.45 17.10 17.01 13.46 13.39 10.13 9.60 7.59 7.27 7.26 6.85 4.78 4.45 4.18 3.62 2.95 2.56
1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 31 32 33 34 35 36 37 39 40 41 43 47 48 49 50 51 52
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 41.51 39.62 37.74 35.85 33.96 32.08 30.19 26.42 24.53 22.64 18.87 11.32 9.43 7.55 5.66 3.77 1.89
Region
_________________________________________________________________________________________________________
Australia Norway Israel Ireland Taiwan Switzerland USA Luxembourg Japan South Korea Russia Hungary Canada Portugal the United Kingdom Austria Finland France Netherlands Belgium Brazil China Italy Spain Singapore Turkey Mexico Germany New Zealand Hong Kong Greece Sweden Denmark Malaysia Philippines Indonesia Thailand South Africa Chile Czech Republic Argentina India Pakistan Poland Peru
Oceana Europe the Middle East Europe Asia Europe North America Europe Asia Asia Europe Europe North America Europe Europe Europe Europe Europe Europe Europe Latin America Asia Europe Europe Asia the Middle East Latin America Europe Oceana Asia Europe Europe Europe Asia Asia Asia Asia Africa Latin America Europe Latin America Asia the Middle East Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
106
Cash & Short Term Investments (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
103.17 101.85 83.83 83.11 78.23 72.50 56.47 53.89 53.77 52.78 52.66 47.42 42.64 40.55 39.92 36.82 35.25 34.88 33.08 32.77 32.30 31.95 31.95 31.87 30.25 28.47 25.36 25.15 21.87 20.53 20.52 20.47 20.01 19.79 18.36 17.85 17.22 17.01 16.40 15.77 15.56 13.46 13.39 4.78 4.54 4.53 2.95 2.65 2.55 2.55 2.23
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Norway Ireland Switzerland Iceland Liechtenstein Luxembourg Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Portugal Cyprus the United Kingdom Austria San Marino Finland Jersey Guernsey France Netherlands Belgium Vatican City Italy Spain Slovenia Monaco Germany Romania Andorra Bosnia & Herzegovina Macedonia Serbia & Montenegro Greece Faroe Islands Malta Isle of Man Sweden Denmark Czech Republic Latvia Croatia Poland Moldova Kazakhstan Bulgaria Albania
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
107
Receivables (Net) Countries
Value ($K/employee)
Rank
Percentile
3308.56 125.23 78.70 77.34 71.81 69.70 66.77 62.62 59.77 53.70 53.56 51.68 48.50 46.62 41.46 41.11 40.86 40.52 40.29 38.48 38.43 36.51 35.39 34.84 34.25 33.18 32.80 31.10 29.65 29.59 28.99 27.08 26.99 21.59 21.15 19.76 17.91 17.47 17.04 15.21 13.81 12.97 12.47 12.08 8.95
1 2 3 4 5 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 39 40 41 42 43 45 47 48 49 53
98.11 96.23 94.34 92.45 90.57 86.79 84.91 83.02 81.13 79.25 77.36 75.47 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 26.42 24.53 22.64 20.75 18.87 15.09 11.32 9.43 7.55 0.00
Region
_________________________________________________________________________________________________________
Australia Taiwan Japan South Korea Greece Russia Italy Hungary Netherlands Turkey Mexico France Belgium Norway Denmark Germany Israel Ireland Switzerland Portugal Finland China USA Luxembourg Austria Canada Poland the United Kingdom Chile Singapore Sweden Peru Spain New Zealand Hong Kong Malaysia India Philippines South Africa Brazil Indonesia Czech Republic Thailand Argentina Pakistan
Oceana Asia Asia Asia Europe Europe Europe Europe Europe the Middle East Latin America Europe Europe Europe Europe Europe the Middle East Europe Europe Europe Europe Asia North America Europe Europe North America Europe Europe Latin America Asia Europe Latin America Europe Oceana Asia Asia Asia Asia Africa Latin America Asia Europe Asia Latin America the Middle East
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
108
Receivables (Net) (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
74.56 71.81 71.16 71.00 69.70 69.53 67.31 66.77 66.56 65.68 62.62 59.77 56.31 53.54 52.71 51.68 51.03 48.50 46.83 46.62 45.51 43.90 41.46 41.11 40.52 40.29 38.48 38.43 37.59 36.84 35.75 34.84 34.25 33.92 33.07 33.07 32.80 31.10 29.49 28.99 28.69 28.38 28.32 27.67 26.99 25.34 23.64 20.28 12.97 12.31 12.30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Estonia Greece Belarus Slovakia Russia Lithuania Vatican City Italy Malta Isle of Man Hungary Netherlands Ukraine Gibraltar Georgia France Romania Belgium Bosnia & Herzegovina Norway Macedonia Serbia & Montenegro Denmark Germany Ireland Switzerland Portugal Finland Liechtenstein Cyprus Iceland Luxembourg Austria San Marino Jersey Guernsey Poland the United Kingdom Moldova Sweden Monaco Kazakhstan Bulgaria Andorra Spain Slovenia Albania Faroe Islands Czech Republic Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
109
Total Inventories Countries
Value ($K/employee)
Rank
Percentile
4819.42 116.85 85.55 48.36 46.86 43.58 42.63 39.16 36.14 35.46 33.94 33.72 33.03 31.85 28.83 28.75 28.57 28.23 27.73 27.65 26.73 26.47 24.50 23.14 22.90 20.57 20.26 20.18 18.63 17.13 16.67 13.99 13.88 12.81 12.47 12.29 11.75 11.62 11.62 10.69 10.47 10.47 7.24 5.03 3.98
1 2 3 4 5 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 49 51
98.11 96.23 94.34 92.45 90.57 86.79 84.91 83.02 81.13 79.25 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 13.21 7.55 3.77
Region
_________________________________________________________________________________________________________
Australia Taiwan Italy South Korea Peru Russia Denmark Hungary Greece Germany Japan Chile USA Canada Turkey Mexico Belgium Netherlands Norway Sweden France Switzerland the United Kingdom Portugal Luxembourg China Brazil Austria Finland Singapore Spain Israel Ireland Pakistan Czech Republic South Africa India Poland Argentina New Zealand Hong Kong Malaysia Thailand Philippines Indonesia
Oceana Asia Europe Asia Latin America Europe Europe Europe Europe Europe Asia Latin America North America North America the Middle East Latin America Europe Europe Europe Europe Europe Europe Europe Europe Europe Asia Latin America Europe Europe Asia Europe the Middle East Europe the Middle East Europe Africa Asia Europe Latin America Oceana Asia Asia Asia Asia Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
110
Total Inventories (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
86.25 85.55 46.62 44.50 44.40 43.58 43.48 42.63 40.90 39.16 36.14 35.46 35.21 33.49 33.48 33.36 33.05 32.96 28.57 28.23 27.73 27.65 27.39 26.73 26.47 25.13 24.70 24.50 24.43 23.56 23.14 22.90 22.15 20.18 19.99 19.49 19.49 18.63 16.67 16.61 16.02 15.65 13.88 12.47 11.84 11.83 11.62 10.45 10.05 10.04 10.03
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Vatican City Italy Estonia Belarus Slovakia Russia Lithuania Denmark Albania Hungary Greece Germany Ukraine Malta Gibraltar Iceland Isle of Man Georgia Belgium Netherlands Norway Sweden Romania France Switzerland Bosnia & Herzegovina Liechtenstein the United Kingdom Macedonia Serbia & Montenegro Portugal Luxembourg Cyprus Austria San Marino Guernsey Jersey Finland Spain Monaco Andorra Slovenia Ireland Czech Republic Latvia Croatia Poland Moldova Kazakhstan Faroe Islands Bulgaria
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
111
Current Assets - Total Countries
Value ($K/employee)
Rank
Percentile
8596.25 360.97 193.82 186.57 180.46 177.79 174.65 160.81 160.65 159.48 156.92 155.29 134.30 128.48 127.03 114.83 111.73 111.43 105.67 105.07 104.85 102.15 98.53 94.92 93.19 89.07 85.36 81.27 73.24 72.42 68.90 65.77 63.36 49.77 48.76 47.87 40.73 36.92 35.05 33.81 30.37 28.29 27.99 26.73 26.18
1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 30 31 32 33 34 35 37 38 39 40 41 42 43 44 46 47 48 49
98.11 96.23 94.34 92.45 90.57 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 13.21 11.32 9.43 7.55
Region
_________________________________________________________________________________________________________
Australia Taiwan South Korea Japan Italy Norway Russia Israel USA Ireland Hungary Switzerland Luxembourg Greece Netherlands France Turkey Mexico Belgium Germany Canada Denmark Portugal Finland the United Kingdom Austria China Peru Sweden Chile Singapore Spain Brazil New Zealand Hong Kong Poland Malaysia South Africa India Philippines Czech Republic Argentina Thailand Indonesia Pakistan
Oceana Asia Asia Asia Europe Europe Europe the Middle East North America Europe Europe Europe Europe Europe Europe Europe the Middle East Latin America Europe Europe North America Europe Europe Europe Europe Europe Asia Latin America Europe Latin America Asia Europe Latin America Oceana Asia Europe Asia Africa Asia Asia Europe Latin America Asia Asia the Middle East
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
112
Current Assets - Total (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
186.85 181.92 180.46 178.33 177.92 177.79 174.65 174.25 162.30 159.48 156.92 155.29 144.91 141.11 134.30 134.17 132.10 128.48 127.03 119.08 117.51 114.83 106.16 105.67 105.07 102.15 98.53 97.42 94.92 94.68 94.32 93.19 91.33 89.07 88.23 86.02 86.02 73.24 70.94 66.81 65.77 64.43 61.75 47.87 46.76 43.04 41.42 41.34 30.37 28.82 28.81
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Estonia Vatican City Italy Belarus Slovakia Norway Russia Lithuania Iceland Ireland Hungary Switzerland Liechtenstein Ukraine Luxembourg Gibraltar Georgia Greece Netherlands Malta Isle of Man France Romania Belgium Germany Denmark Portugal Bosnia & Herzegovina Finland Macedonia Cyprus the United Kingdom Serbia & Montenegro Austria San Marino Guernsey Jersey Sweden Albania Monaco Spain Andorra Slovenia Poland Faroe Islands Moldova Kazakhstan Bulgaria Czech Republic Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
113
Property Plant and Equipment - Net Countries
Value ($K/employee)
Rank
Percentile
3528.70 293.88 131.15 118.18 106.18 81.72 71.76 68.00 61.48 58.73 56.56 54.01 53.79 53.77 53.17 52.70 45.84 43.20 42.00 41.28 40.38 39.95 36.10 35.49 33.53 33.10 32.40 31.42 30.17 28.92 27.42 27.42 27.07 26.86 23.47 22.87 22.81 19.59 19.43 18.42 16.47 15.74 15.34 11.14 6.40
1 2 3 5 6 7 8 9 10 11 13 14 15 16 17 18 20 22 23 24 25 26 28 29 30 31 32 33 34 36 38 39 40 41 42 43 44 46 47 48 49 50 51 52 53
98.11 96.23 94.34 90.57 88.68 86.79 84.91 83.02 81.13 79.25 75.47 73.58 71.70 69.81 67.92 66.04 62.26 58.49 56.60 54.72 52.83 50.94 47.17 45.28 43.40 41.51 39.62 37.74 35.85 32.08 28.30 26.42 24.53 22.64 20.75 18.87 16.98 13.21 11.32 9.43 7.55 5.66 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Australia Taiwan South Korea Russia Hungary Chile Japan Philippines Switzerland Peru Belgium Brazil New Zealand Indonesia Luxembourg Hong Kong Italy Portugal Poland Austria China USA France Thailand Spain Germany Denmark Netherlands Sweden Malaysia Singapore Greece Finland Canada the United Kingdom Turkey Mexico Israel Ireland India Czech Republic Norway Argentina South Africa Pakistan
Oceana Asia Asia Europe Europe Latin America Asia Asia Europe Latin America Europe Latin America Oceana Asia Europe Asia Europe Europe Europe Europe Asia North America Europe Asia Europe Europe Europe Europe Europe Asia Asia Europe Europe North America Europe the Middle East Latin America the Middle East Europe Asia Europe Europe Latin America Africa the Middle East
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
114
Property Plant and Equipment - Net (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
126.43 120.67 120.39 118.18 117.91 106.18 95.49 90.79 89.39 61.48 57.37 56.56 53.17 51.26 50.54 46.21 45.84 43.20 42.00 41.35 41.28 40.89 40.36 39.87 39.87 37.76 36.34 36.27 36.10 33.53 33.10 32.40 31.48 31.42 30.17 27.42 27.07 26.59 25.64 25.42 25.08 23.47 21.73 19.94 19.43 19.38 18.70 16.47 15.74 15.63 15.63
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Switzerland Liechtenstein Belgium Luxembourg Albania Faroe Islands Vatican City Italy Portugal Poland Cyprus Austria San Marino Iceland Jersey Guernsey Moldova Kazakhstan Bulgaria France Spain Germany Denmark Slovenia Netherlands Sweden Greece Finland Monaco Andorra Malta Isle of Man the United Kingdom Romania Bosnia & Herzegovina Ireland Macedonia Serbia & Montenegro Czech Republic Norway Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
115
Accumulated Depreciation - Total Countries
Value ($K/employee)
Rank
Percentile
938.61 142.96 106.52 100.53 90.92 81.93 73.61 67.49 66.90 66.04 62.57 59.76 58.36 58.09 51.39 50.47 43.19 42.48 38.67 38.56 37.93 29.62 29.31 28.99 27.59 27.36 26.43 26.17 24.31 23.44 22.57 21.82 20.69 19.62 17.49 16.02 15.70 15.17 12.61 9.28
1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 30 31 32 33 35 36 37 40 42 43 44 46 47
97.87 95.74 93.62 91.49 89.36 85.11 82.98 80.85 78.72 76.60 74.47 72.34 70.21 68.09 65.96 63.83 61.70 59.57 57.45 55.32 53.19 48.94 46.81 44.68 42.55 40.43 38.30 36.17 34.04 31.91 29.79 25.53 23.40 21.28 14.89 10.64 8.51 6.38 2.13 0.00
Region
_________________________________________________________________________________________________________
Australia Portugal Japan Taiwan South Korea Russia Hungary Austria Brazil Chile Spain Italy Switzerland Germany Denmark Luxembourg Belgium USA Turkey Mexico France Netherlands China Sweden Israel Ireland Canada Philippines the United Kingdom Finland Singapore Thailand Indonesia Norway Malaysia New Zealand Hong Kong India Greece South Africa
Oceana Europe Asia Asia Asia Europe Europe Europe Latin America Latin America Europe Europe Europe Europe Europe Europe Europe North America the Middle East Latin America Europe Europe Asia Europe the Middle East Europe North America Asia Europe Europe Asia Asia Asia Europe Asia Oceana Asia Asia Europe Africa
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
116
Accumulated Depreciation - Total (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
142.96 136.84 87.65 83.66 83.46 81.93 81.74 73.61 67.49 66.85 66.20 65.18 65.18 62.94 62.57 61.97 60.24 59.76 58.74 58.36 58.09 54.46 51.39 50.47 43.19 42.92 37.93 36.74 33.71 32.77 31.61 29.62 28.99 27.36 24.31 23.44 21.88 21.10 19.62 15.06 12.61 11.69 11.54
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43
97.67 95.35 93.02 90.70 88.37 86.05 83.72 81.40 79.07 76.74 74.42 72.09 69.77 67.44 65.12 62.79 60.47 58.14 55.81 53.49 51.16 48.84 46.51 44.19 41.86 39.53 37.21 34.88 32.56 30.23 27.91 25.58 23.26 20.93 18.60 16.28 13.95 11.63 9.30 6.98 4.65 2.33 0.00
_________________________________________________________________________________________________________
Portugal Cyprus Estonia Belarus Slovakia Russia Lithuania Hungary Austria San Marino Ukraine Jersey Guernsey Gibraltar Spain Georgia Vatican City Italy Slovenia Switzerland Germany Liechtenstein Denmark Luxembourg Belgium Iceland France Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Netherlands Sweden Ireland the United Kingdom Finland Monaco Andorra Norway Faroe Islands Greece Malta Isle of Man
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
117
Intangible Other Assets Countries
Value ($K/employee)
Rank
Percentile
11567.94 39.43 34.62 31.28 30.17 27.05 19.75 19.32 19.29 16.95 13.47 10.66 10.24 9.97 9.53 7.91 6.88 6.62 6.29 5.19 4.58 4.12 3.70 3.49 2.69 2.13 1.74 1.55 1.46 1.43 1.39 1.24 1.24 0.88 0.87 0.70 0.32 0.30 0.09 0.06 0.06 0.01 0.01
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 26 28 30 31 32 33 34 35 36 38 39 40 42 43 44 45 46 47 49
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 54.90 52.94 50.98 49.02 45.10 41.18 39.22 37.25 35.29 33.33 31.37 29.41 25.49 23.53 21.57 17.65 15.69 13.73 11.76 9.80 7.84 3.92
Region
_________________________________________________________________________________________________________
Australia Netherlands Belgium Switzerland USA Luxembourg Germany France Canada Italy Norway Taiwan Finland Chile the United Kingdom Greece Austria Denmark Sweden Spain South Korea Russia Hungary Japan Thailand China Poland South Africa India Malaysia Singapore Turkey Mexico New Zealand Hong Kong Peru Czech Republic Argentina Brazil Israel Ireland Philippines Indonesia
Oceana Europe Europe Europe North America Europe Europe Europe North America Europe Europe Asia Europe Latin America Europe Europe Europe Europe Europe Europe Asia Europe Europe Asia Asia Asia Europe Africa Asia Asia Asia the Middle East Latin America Oceana Asia Latin America Europe Latin America Latin America the Middle East Europe Asia Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
118
Intangible Other Assets (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
39.43 34.62 31.28 30.48 29.19 27.05 19.75 19.32 17.09 16.95 13.47 10.24 9.53 7.91 7.33 7.24 6.88 6.82 6.65 6.65 6.62 6.29 5.19 4.87 4.41 4.21 4.20 4.12 4.11 3.70 3.33 3.17 3.12 1.74 1.56 1.51 1.50 1.34 1.30 1.18 1.08 1.05 1.01 0.83 0.61 0.32 0.30 0.30 0.06
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49
97.96 95.92 93.88 91.84 89.80 87.76 85.71 83.67 81.63 79.59 77.55 75.51 73.47 71.43 69.39 67.35 65.31 63.27 61.22 59.18 57.14 55.10 53.06 51.02 48.98 46.94 44.90 42.86 40.82 38.78 36.73 34.69 32.65 30.61 28.57 26.53 24.49 22.45 20.41 18.37 16.33 14.29 12.24 10.20 8.16 6.12 4.08 2.04 0.00
_________________________________________________________________________________________________________
Netherlands Belgium Switzerland Iceland Liechtenstein Luxembourg Germany France Vatican City Italy Norway Finland the United Kingdom Greece Malta Isle of Man Austria San Marino Jersey Guernsey Denmark Sweden Spain Slovenia Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Monaco Andorra Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Faroe Islands Albania Czech Republic Latvia Croatia Ireland
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.7 3.7.1
119
PRODUCTIVITY IN FINLAND: LIABILITY-LABOR RATIOS Overview
In this chapter we consider the liability-labor ratios of companies operating in Finland benchmarked against global averages for communications equipment. For ratios where there are large deviations between Finland and the benchmarks, graphics are provided (sometimes referred to as a “gap” analysis). Then the distribution of productivity ratios is presented in the form of ranks and percentiles. Certain key liability-labor ratios are highlighted for communications equipment across countries in the comparison group. Definitions of liability statement terms are given in Chapter 3. In the case of liability-labor ratios, this report maintains comparability over time and across countries by using a common currency (the US dollar) and relates each measure to a “per employee basis”. Ratios are projected using raw financial statistics and, as ratios, are therefore comparable. Given a country’s human resource ratios, the resulting figures are benchmarked across regional and global averages. I then report the larger liability-labor ratio gaps for communications equipment that Finland has vis-à-vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firm’s relative incentive to invest locally. All figures are projections, so due caution is required.
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Financial Indicators
3.7.2
120
Liability to Labor: Outlook
The following tables and graphs are prepared using the methodology described at the beginning of this section. All units are in thousands of US dollars per employee. All figures are current-year projections for communications equipment in Finland based on latest financial results available. Labor-liability Ratios ($k/employee) Finland Europe World Avg. _________________________________________________________________________________________________________
Accounts Payable Short Term Debt & Current Portion of Long Term Debt Accrued Payroll Income Taxes Payable Other Current Liabilities Current Liabilities - Total Long Term Debt Long Term Debt Excluding Capitalized Leases Provision For Risks and Charges Deferred Taxes Deferred Taxes - Credit Deferred Taxes - Debit Other Liabilities Total Liabilities Non-Equity Reserves Minority Interest Common Equity Common Stock Capital Surplus Revaluation Reserves Other Appropriated Reserves Unappropriated Reserves Retained Earnings Unrealized Foreign Exchange Gain/Loss Treasury Stock Total Liabilities & Shareholders Equity
20.97 7.83 4.59 0.88 20.27 49.49 14.95 14.95 0.08 -0.32 1.48 5.12 0.17 64.43 2.59 0.80 76.40 7.51 17.79 0.09 9.12 0.02 48.48 1.13 0.34 144.23
19.19 22.65 3.12 2.68 20.44 62.10 20.52 19.89 5.99 0.51 1.97 2.42 1.92 89.44 0.38 4.30 86.56 22.52 40.63 3.86 10.51 8.73 24.62 0.28 3.19 180.69
24.79 31.05 3.12 1.34 14.97 74.24 13.64 12.86 2.02 2.93 5.68 2.65 1.76 93.88 0.08 3.63 105.89 56.59 22.18 3.52 6.79 6.63 15.95 -0.62 1.05 203.64
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
3.7.3
121
Liability and Equity to Labor: International Gaps
The following graphics summarize for communications equipment the large labor-liability gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.
Gap: Short Term Debt & Current Portion of Long Term Debt ($k/employee) 40 30 20 10 0 -10 -20 -30
31.05 22.65 7.83
-23.22 Finland
Europe
World Average
Gap
Gap: Other Current Liabilities ($k/employee) 25 20
20.27
20.44 14.97
15 10
5.3
5 0 Finland
Europe
World Average
Gap
Gap: Current Liabilities - Total ($k/employee) 80 60
49.49
62.1
74.24
40 20 0 -20
-24.75
-40 Finland
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Europe
World Average
Gap
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122
Gap: Deferred Taxes - Credit ($k/employee) 5.68
6 4 2
1.48
1.97
0 -2 -4
-4.2
-6 Finland
Europe
World Average
Gap
Gap: Total Liabilities ($k/employee) 89.44
100
93.88
64.43 50 0 -29.45 -50 Finland
Europe
World Average
Gap
Gap: Common Equity ($k/employee) 150 100
76.4
86.56
105.89
50 0 -29.49
-50 Finland
Europe
World Average
Gap
Gap: Common Stock ($k/employee) 56.59
60 40 20
22.52 7.51
0 -20 -40
-49.08
-60 Finland
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Europe
World Average
Gap
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Financial Indicators
123
Gap: Capital Surplus ($k/employee) 50
40.63
40 30 20
22.18
17.79
10 0
-4.39
-10 Finland
Europe
World Average
Gap
Gap: Unappropriated Reserves ($k/employee) 8.73
10
6.63
5 0
0.02
-5
-6.61
-10 Finland
Europe
World Average
Gap
Gap: Retained Earnings ($k/employee) 50
48.48
40
32.53 24.62
30
15.95
20 10 0 Finland
Europe
World Average
Gap
Gap: Total Liabilities & Shareholders Equity ($k/employee) 250 200 150 100 50 0 -50 -100
144.23
180.69
203.64
-59.41 Finland
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Europe
World Average
Gap
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Financial Indicators
3.7.4
124
Key Percentiles and Rankings
We now consider the distribution of liability-labor ratios using ranks and percentiles across . What percent of countries have a value lower or higher than Finland (what is the indicator's rank or percentile)? The table below answers this question with respect to liability-labor ratios. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance or productivity. After the summary table below, a few key liabilitylabor ratios are highlighted in additional tables. Liability Structure ($k/employee)
Finland
Rank of Total
Percentile
20.97 7.83 4.59 0.88 20.27 49.49 14.95 14.95 0.08 -0.32 1.48 5.12 0.17 64.43 2.59 0.80 76.40 7.51 17.79 0.09 9.12 0.02 48.48 1.13 0.34 144.23
16 of 48 37 of 53 9 of 33 36 of 48 20 of 53 24 of 53 22 of 51 21 of 51 37 of 39 31 of 40 23 of 31 8 of 28 43 of 49 28 of 53 1 of 26 34 of 47 23 of 53 38 of 50 20 of 43 29 of 34 22 of 47 36 of 39 8 of 53 7 of 35 24 of 32 26 of 53
66.67 30.19 72.73 25.00 62.26 54.72 56.86 58.82 5.13 22.50 25.81 71.43 12.24 47.17 96.15 27.66 56.60 24.00 53.49 14.71 53.19 7.69 84.91 80.00 25.00 50.94
_________________________________________________________________________________________________________
Accounts Payable Short Term Debt & Current Portion of Long Term Debt Accrued Payroll Income Taxes Payable Other Current Liabilities Current Liabilities - Total Long Term Debt Long Term Debt Excluding Capitalized Leases Provision For Risks and Charges Deferred Taxes Deferred Taxes - Credit Deferred Taxes - Debit Other Liabilities Total Liabilities Non-Equity Reserves Minority Interest Common Equity Common Stock Capital Surplus Revaluation Reserves Other Appropriated Reserves Unappropriated Reserves Retained Earnings Unrealized Foreign Exchange Gain/Loss Treasury Stock Total Liabilities & Shareholders Equity
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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125
Accounts Payable Countries
Value ($K/employee)
Rank
Percentile
2842.73 112.62 42.08 35.67 33.44 32.30 32.21 28.90 28.30 26.04 23.40 23.02 21.37 20.97 19.07 18.99 18.94 18.36 18.28 17.55 15.62 15.49 15.43 15.36 14.51 13.92 13.51 13.29 12.29 12.21 12.09 11.99 11.95 9.87 9.72 9.69 9.49 6.08 5.82 5.50 4.27
1 2 3 4 5 6 7 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 37 38 39 40 43 44 45 48
97.92 95.83 93.75 91.67 89.58 87.50 85.42 81.25 79.17 75.00 72.92 70.83 68.75 66.67 64.58 62.50 60.42 58.33 56.25 54.17 52.08 50.00 47.92 45.83 43.75 41.67 39.58 37.50 35.42 33.33 31.25 29.17 27.08 22.92 20.83 18.75 16.67 10.42 8.33 6.25 0.00
Region
_________________________________________________________________________________________________________
Australia Taiwan Japan Italy France Turkey Mexico South Korea Canada Russia Hungary Norway Greece Finland Portugal Netherlands China Singapore Spain Germany Switzerland the United Kingdom USA India South Africa Denmark Luxembourg Sweden Philippines Poland Israel Ireland Belgium Austria Indonesia New Zealand Hong Kong Brazil Thailand Malaysia Chile
Oceana Asia Asia Europe Europe the Middle East Latin America Asia North America Europe Europe Europe Europe Europe Europe Europe Asia Asia Europe Europe Europe Europe North America Asia Africa Europe Europe Europe Asia Europe the Middle East Europe Europe Europe Asia Oceana Asia Latin America Asia Asia Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
126
Accounts Payable (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
35.95 35.67 33.44 30.69 28.16 27.86 27.37 26.59 26.53 26.40 26.04 25.98 23.40 23.02 21.37 21.04 20.97 20.01 19.81 19.70 19.54 19.07 18.99 18.28 18.25 17.80 17.55 17.17 17.16 15.62 15.58 15.49 14.57 13.92 13.51 13.29 12.21 11.99 11.95 10.98 10.56 10.54 9.87 9.78 9.53 9.53 9.10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47
97.87 95.74 93.62 91.49 89.36 87.23 85.11 82.98 80.85 78.72 76.60 74.47 72.34 70.21 68.09 65.96 63.83 61.70 59.57 57.45 55.32 53.19 51.06 48.94 46.81 44.68 42.55 40.43 38.30 36.17 34.04 31.91 29.79 27.66 25.53 23.40 21.28 19.15 17.02 14.89 12.77 10.64 8.51 6.38 4.26 2.13 0.00
_________________________________________________________________________________________________________
Vatican City Italy France Romania Bosnia & Herzegovina Estonia Macedonia Belarus Slovakia Serbia & Montenegro Russia Lithuania Hungary Norway Greece Ukraine Finland Gibraltar Malta Georgia Isle of Man Portugal Netherlands Spain Cyprus Monaco Germany Andorra Slovenia Switzerland Iceland the United Kingdom Liechtenstein Denmark Luxembourg Sweden Poland Ireland Belgium Moldova Kazakhstan Bulgaria Austria San Marino Guernsey Jersey Faroe Islands
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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127
Current Liabilities - Total Countries
Value ($K/employee)
Rank
Percentile
8983.70 290.35 136.09 128.56 122.64 110.18 97.12 90.56 87.57 68.91 68.72 67.62 63.91 63.44 63.39 60.71 56.86 53.61 52.97 52.80 51.63 49.49 48.45 48.13 48.00 45.81 43.91 43.27 42.40 42.31 40.10 37.54 37.40 31.91 31.62 31.58 25.72 25.00 22.79 22.58 21.84 18.81 16.60 8.82 8.21
1 2 3 4 6 7 8 9 10 11 12 13 14 16 17 18 19 20 21 22 23 24 25 26 27 28 30 31 32 33 34 35 36 37 38 39 41 42 44 45 46 47 51 52 53
98.11 96.23 94.34 92.45 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 22.64 20.75 16.98 15.09 13.21 11.32 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Australia Taiwan South Korea Italy Russia Hungary Japan Netherlands Greece Turkey Mexico France Israel China Ireland Peru Denmark Germany Switzerland Norway Chile Finland Belgium Singapore Austria Luxembourg USA New Zealand Hong Kong the United Kingdom Portugal Canada Sweden Brazil Philippines Poland Spain Indonesia South Africa India Thailand Malaysia Pakistan Czech Republic Argentina
Oceana Asia Asia Europe Europe Europe Asia Europe Europe the Middle East Latin America Europe the Middle East Asia Europe Latin America Europe Europe Europe Europe Latin America Europe Europe Asia Europe Europe North America Oceana Asia Europe Europe North America Europe Latin America Asia Europe Europe Asia Africa Asia Asia Asia the Middle East Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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©2007 Icon Group International, Inc.
Financial Indicators
128
Current Liabilities - Total (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
131.20 129.60 128.56 125.22 124.93 122.64 122.35 110.18 99.08 94.21 92.75 90.56 87.57 81.16 80.09 67.62 65.47 63.39 60.09 58.40 56.86 56.33 53.61 52.99 52.97 52.80 49.49 49.43 48.45 48.00 47.54 46.67 46.35 46.35 45.81 45.01 44.36 42.31 40.66 40.10 38.38 37.40 31.58 28.40 27.33 27.28 25.72 24.14 8.82 8.37 8.37
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Estonia Vatican City Italy Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Netherlands Greece Malta Isle of Man France Romania Ireland Bosnia & Herzegovina Macedonia Denmark Serbia & Montenegro Germany Albania Switzerland Norway Finland Liechtenstein Belgium Austria San Marino Monaco Guernsey Jersey Luxembourg Andorra Iceland the United Kingdom Faroe Islands Portugal Cyprus Sweden Poland Moldova Kazakhstan Bulgaria Spain Slovenia Czech Republic Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
129
Long Term Debt Countries
Value ($K/employee)
Rank
Percentile
168.01 53.02 47.78 43.95 42.93 42.59 41.01 36.84 31.03 31.00 28.84 26.59 25.71 24.50 19.53 19.24 16.19 16.15 14.95 14.22 14.07 12.34 11.42 11.24 10.97 10.40 10.32 8.30 7.26 7.04 6.68 5.69 5.21 4.39 4.31 4.05 3.76 3.39 2.51 1.22 1.21 0.61 0.32
1 2 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 22 23 24 25 28 29 30 33 34 35 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 56.86 54.90 52.94 50.98 45.10 43.14 41.18 35.29 33.33 31.37 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
Region
_________________________________________________________________________________________________________
Australia South Korea Russia Taiwan Hungary Switzerland Peru Luxembourg Greece Belgium France Italy Netherlands USA Japan Denmark Turkey Mexico Finland Philippines Thailand Austria Sweden Indonesia Poland India Germany Chile China the United Kingdom Norway Portugal Singapore New Zealand Hong Kong Brazil Canada Malaysia South Africa Israel Ireland Pakistan Spain
Oceana Asia Europe Asia Europe Europe Latin America Europe Europe Europe Europe Europe Europe North America Asia Europe the Middle East Latin America Europe Asia Asia Europe Europe Asia Europe Asia Europe Latin America Asia Europe Europe Europe Asia Oceana Asia Latin America North America Asia Africa the Middle East Europe the Middle East Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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©2007 Icon Group International, Inc.
Financial Indicators
130
Long Term Debt (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
51.11 48.78 48.67 47.78 47.67 42.93 42.59 39.75 38.60 36.84 36.70 36.14 35.80 31.03 31.00 28.84 28.76 28.38 26.81 26.59 25.71 24.76 19.24 15.38 14.95 14.12 13.72 13.24 12.34 12.22 11.92 11.92 11.42 10.97 10.32 9.86 9.49 9.48 7.04 6.68 5.69 5.45 5.05 4.87 4.13 1.21 0.32 0.30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
97.92 95.83 93.75 91.67 89.58 87.50 85.42 83.33 81.25 79.17 77.08 75.00 72.92 70.83 68.75 66.67 64.58 62.50 60.42 58.33 56.25 54.17 52.08 50.00 47.92 45.83 43.75 41.67 39.58 37.50 35.42 33.33 31.25 29.17 27.08 25.00 22.92 20.83 18.75 16.67 14.58 12.50 10.42 8.33 6.25 4.17 2.08 0.00
_________________________________________________________________________________________________________
Estonia Belarus Slovakia Russia Lithuania Hungary Switzerland Liechtenstein Ukraine Luxembourg Gibraltar Georgia Albania Greece Belgium France Malta Isle of Man Vatican City Italy Netherlands Iceland Denmark Romania Finland Bosnia & Herzegovina Macedonia Serbia & Montenegro Austria San Marino Guernsey Jersey Sweden Poland Germany Moldova Kazakhstan Bulgaria the United Kingdom Norway Portugal Cyprus Monaco Andorra Faroe Islands Ireland Spain Slovenia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
131
Total Liabilities Countries
Value ($K/employee)
Rank
Percentile
10028.76 345.90 195.12 175.83 168.43 157.97 131.59 127.04 119.65 117.06 104.34 101.72 101.23 91.50 91.25 90.98 89.46 80.99 77.34 75.00 74.38 72.75 71.77 65.20 64.43 58.13 57.40 57.02 56.99 52.37 48.45 47.87 46.90 46.20 45.08 41.97 37.22 36.23 33.52 27.79 25.39 23.46 16.82 9.31 8.67
1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 20 21 23 24 25 26 27 28 29 30 31 32 33 34 36 37 38 39 41 42 43 44 48 49 50 51 52 53
98.11 96.23 94.34 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 62.26 60.38 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 32.08 30.19 28.30 26.42 22.64 20.75 18.87 16.98 9.43 7.55 5.66 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Australia Taiwan South Korea Russia Italy Hungary Netherlands Japan Greece Switzerland France Peru Luxembourg Turkey Mexico Germany Belgium Denmark Austria Israel Ireland USA China Chile Finland Sweden Singapore Philippines Norway the United Kingdom Poland New Zealand Hong Kong Portugal Indonesia Canada Brazil Thailand India Spain South Africa Malaysia Pakistan Czech Republic Argentina
Oceana Asia Asia Europe Europe Europe Europe Asia Europe Europe Europe Latin America Europe the Middle East Latin America Europe Europe Europe Europe the Middle East Europe North America Asia Latin America Europe Europe Asia Asia Europe Europe Europe Oceana Asia Europe Asia North America Latin America Asia Asia Europe Africa Asia the Middle East Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Financial Indicators
132
Total Liabilities (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
188.10 179.53 179.11 175.83 175.41 169.79 168.43 157.97 142.06 135.07 132.99 131.59 119.65 117.06 110.89 109.44 109.23 104.34 101.23 90.98 89.46 88.79 86.93 80.99 79.78 77.54 77.34 76.60 74.79 74.69 74.69 74.38 73.50 64.43 58.13 56.99 55.66 53.67 52.37 48.45 46.20 44.97 44.22 43.56 41.92 41.85 27.79 26.09 9.31 8.84 8.83
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Estonia Belarus Slovakia Russia Lithuania Vatican City Italy Hungary Ukraine Gibraltar Georgia Netherlands Greece Switzerland Malta Isle of Man Liechtenstein France Luxembourg Germany Belgium Albania Romania Denmark Bosnia & Herzegovina Macedonia Austria San Marino Serbia & Montenegro Jersey Guernsey Ireland Iceland Finland Sweden Norway Monaco Andorra the United Kingdom Poland Portugal Faroe Islands Cyprus Moldova Kazakhstan Bulgaria Spain Slovenia Czech Republic Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
133
Common Equity Countries
Value ($K/employee)
Rank
Percentile
13665.38 323.09 197.06 195.43 170.03 162.98 160.14 153.22 149.89 137.66 130.18 119.10 112.58 109.11 107.65 102.34 97.82 92.41 87.12 79.22 76.40 74.14 72.87 72.74 70.84 69.60 65.35 65.15 62.70 62.37 56.78 55.63 54.43 53.07 48.24 47.74 47.38 47.25 43.89 43.04 39.10 36.42 24.75 24.41 15.16
1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 43 44 47 49 51 52 53
98.11 96.23 94.34 92.45 90.57 88.68 86.79 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 18.87 16.98 11.32 7.55 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Australia Taiwan Israel Ireland South Korea USA Japan Russia Norway Hungary Switzerland Peru Luxembourg Canada Belgium Chile Portugal Netherlands Brazil Italy Finland the United Kingdom Germany Singapore France Spain China Austria Greece Denmark New Zealand Hong Kong Philippines Sweden Malaysia Thailand Turkey Mexico Poland Indonesia Czech Republic Argentina South Africa India Pakistan
Oceana Asia the Middle East Europe Asia North America Asia Europe Europe Europe Europe Latin America Europe North America Europe Latin America Europe Europe Latin America Europe Europe Europe Europe Asia Europe Europe Asia Europe Europe Europe Oceana Asia Asia Europe Asia Asia the Middle East Latin America Europe Asia Europe Latin America Africa Asia the Middle East
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
134
Common Equity (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
195.43 164.65 163.92 156.44 156.09 153.22 152.86 149.89 137.66 130.18 123.79 121.48 117.70 115.89 112.58 107.65 103.97 97.82 93.64 92.41 79.86 79.22 76.40 74.14 72.87 70.84 70.54 69.60 68.02 65.34 65.15 64.53 62.92 62.92 62.70 62.37 58.11 57.35 53.35 53.07 45.02 43.89 41.31 40.15 39.46 39.10 38.73 37.97 37.91 37.12 37.10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Ireland Iceland Estonia Belarus Slovakia Russia Lithuania Norway Hungary Switzerland Ukraine Liechtenstein Gibraltar Georgia Luxembourg Belgium Albania Portugal Cyprus Netherlands Vatican City Italy Finland the United Kingdom Germany France Monaco Spain Andorra Slovenia Austria San Marino Guernsey Jersey Greece Denmark Malta Isle of Man Faroe Islands Sweden Romania Poland Bosnia & Herzegovina Macedonia Moldova Czech Republic Serbia & Montenegro Kazakhstan Bulgaria Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
135
Retained Earnings Countries
Value ($K/employee)
Rank
Percentile
712.13 174.36 91.51 91.04 72.48 51.70 51.00 48.48 47.90 44.10 43.17 38.78 38.77 36.07 35.27 33.83 31.81 26.27 23.15 22.68 21.38 16.61 16.01 13.71 13.67 12.09 10.93 10.84 10.21 9.79 8.23 6.19 6.18 5.11 3.69 2.16 1.90 1.77 0.33 -0.04 -0.28 -0.84 -1.35 -1.36 -2.67
1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 21 22 23 24 25 26 27 28 29 31 32 33 35 36 38 39 41 42 44 45 46 47 48 49 50 51 52 53
98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 77.36 75.47 73.58 71.70 69.81 67.92 66.04 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 41.51 39.62 37.74 33.96 32.08 28.30 26.42 22.64 20.75 16.98 15.09 13.21 11.32 9.43 7.55 5.66 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Australia Netherlands Japan Norway USA Canada Switzerland Finland South Korea Luxembourg Russia Hungary Belgium Thailand Taiwan the United Kingdom Austria Denmark New Zealand Hong Kong Chile Germany Malaysia Philippines Italy South Africa Singapore Indonesia Sweden Spain France Turkey Mexico China Peru Pakistan Czech Republic Argentina India Portugal Brazil Poland Ireland Israel Greece
Oceana Europe Asia Europe North America North America Europe Europe Asia Europe Europe Europe Europe Asia Asia Europe Europe Europe Oceana Asia Latin America Europe Asia Asia Europe Africa Asia Asia Europe Europe Europe the Middle East Latin America Asia Latin America the Middle East Europe Latin America Asia Europe Latin America Europe Europe the Middle East Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
136
Retained Earnings (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
174.36 91.04 73.22 51.00 48.48 47.59 46.18 44.10 44.07 43.97 43.17 43.06 38.78 38.77 34.88 33.83 33.16 32.65 31.81 31.51 30.72 30.72 26.27 21.75 16.61 13.79 13.67 10.60 10.22 10.21 9.79 9.19 8.23 5.88 5.40 5.25 5.06 3.22 1.90 1.81 1.81 -0.04 -0.04 -0.72 -0.73 -0.75 -0.84 -1.35 -2.44 -2.48 -2.67
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Netherlands Norway Iceland Switzerland Finland Liechtenstein Estonia Luxembourg Belarus Slovakia Russia Lithuania Hungary Belgium Ukraine the United Kingdom Gibraltar Georgia Austria San Marino Guernsey Jersey Denmark Faroe Islands Germany Vatican City Italy Monaco Andorra Sweden Spain Slovenia France Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Albania Czech Republic Latvia Croatia Cyprus Portugal Bulgaria Kazakhstan Moldova Poland Ireland Isle of Man Malta Greece
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.8 3.8.1
137
PRODUCTIVITY IN FINLAND: INCOME-LABOR RATIOS Overview
In this chapter we consider the income-labor ratios for communications equipment in Finland benchmarked against global averages. For ratios where there are large deviations between the average firm operating in Finland and the benchmarks, graphics are provided (sometimes referred to as a “gap” analysis). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key income-labor ratios are highlighted across countries in the comparison group. In the case of income-labor ratios, this report maintains comparability over time and across countries by using a common currency (the US dollar) and relates each measure to a “per employee basis”. Ratios are projected using raw financial statistics and, as ratios, are therefore comparable. Given a country’s human resource ratios, the resulting figures are benchmarked across regional and global averages. We then report the larger income-labor ratio gaps for communications equipment that Finland has vis-à-vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firm’s relative incentive to invest locally. All figures are projections, so due caution is required.
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Financial Indicators
3.8.2
138
Income to Labor: Outlook
The following tables and graphs are prepared using the methodology described at the beginning of this section. All units are in thousands of US dollars per employee. All figures are current-year projections for communications equipment in Finland based on latest financial results available. Labor-income Ratios ($k/employee) Finland Europe World Avg. _________________________________________________________________________________________________________
Net Sales or Revenues Cost of Goods Sold (Excluding Depreciation) Depreciation, Depletion & Amortization Gross Income Selling, General & Administrative Expenses Other Operating Expenses Operating Expenses - Total Operating Income Extraordinary Credit - Pretax Extraordinary Charge - Pretax Non-Operating Interest Income Reserves - Increase/Decrease Pretax Equity In Earnings Other Income/Expense Net Earnings Before Interest and Taxes (EBIT) Interest Expense on Debt Pretax Income Income Taxes Current Domestic Income Tax Current Foreign Income Tax Deferred Domestic Income Tax Deferred Foreign Income Tax Minority Interest Net Income Before Extra Items/Prefer Dividends Net Income Before Preferred Dividends Net Income Available to Common
190.88 139.22 9.17 43.25 41.71 172.69 9.55 16.68 0.03 1.56 1.66 -0.97 0.09 3.21 20.66 1.62 19.04 5.59 6.44 0.25 -0.01 -0.15 0.17 13.29 13.29 13.29
165.38 117.52 9.06 36.66 31.77 153.08 6.57 9.30 1.09 1.31 2.77 -0.20 0.26 1.91 13.27 4.60 8.61 2.99 3.71 0.40 0.17 0.02 0.23 5.75 5.61 5.73
115.78 84.67 5.21 27.76 14.81 103.13 8.18 7.39 0.48 1.11 1.19 -0.02 0.20 1.09 9.00 3.18 5.91 1.46 1.32 0.10 -0.04 -0.01 0.25 4.34 4.34 4.32
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
3.8.3
139
Income to Labor: Gaps
The following graphics summarize for communications equipment the large labor-income gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.
Gap: Net Sales or Revenues ($k/employee) 200
190.88 165.38
150
115.78
100
75.1
50 0 Finland
Europe
World Average
Gap
Gap: Cost of Goods Sold (Excluding Depreciation) ($k/employee) 150
139.22 117.52 84.67
100
54.55 50 0 Finland
Europe
World Average
Gap
Gap: Gross Income ($k/employee) 50
43.25 36.66
40
27.76
30
15.49
20 10 0 Finland
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Europe
World Average
Gap
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Financial Indicators
140
Gap: Selling, General & Administrative Expenses ($k/employee) 50
41.71
40
31.77
26.9
30 14.81
20 10 0 Finland
Europe
World Average
Gap
Gap: Other Operating Expenses ($k/employee) 200
172.69
150
153.08 103.13
100
69.56
50 0 Finland
Europe
World Average
Gap
Gap: Operating Income ($k/employee) 20
16.68
15 9.3
10
7.39
9.29
5 0 Finland
Europe
World Average
Gap
Gap: Earnings Before Interest and Taxes (EBIT) ($k/employee) 25
20.66
20 13.27
15
9
10
11.66
5 0 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
141
Gap: Pretax Income ($k/employee) 20
19.04 13.13
15 8.61
10
5.91
5 0 Finland
Europe
World Average
Gap
Gap: Net Income Before Extra Items/Prefer Dividends ($k/employee) 15
13.29 8.95
10 5.75 5
4.34
0 Finland
Europe
World Average
Gap
Gap: Net Income Before Preferred Dividends ($k/employee) 15
13.29 8.95
10 5.61 5
4.34
0 Finland
Europe
World Average
Gap
Gap: Net Income Available to Common ($k/employee) 15
13.29 8.97
10 5.73 5
4.32
0 Finland
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Europe
World Average
Gap
©2007 Icon Group International, Inc.
Financial Indicators
3.8.4
142
Key Percentiles and Rankings
We now consider the distribution of income-labor ratios using ranks and percentiles across . What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to income-labor ratios. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance or productivity. After the summary table below, a few key income-labor ratios are highlighted in additional tables. Income Structure ($k/employee)
Finland
Rank of Total
Percentile
190.88 139.22 9.17 43.25 41.71 172.69 9.55 16.68 0.03 1.56 1.66 -0.97 0.09 3.21 20.66 1.62 19.04 5.59 6.44 0.25 -0.01 -0.15 0.17 13.29 13.29 13.29
12 of 53 11 of 52 18 of 53 24 of 52 11 of 44 12 of 50 12 of 43 11 of 53 28 of 33 18 of 41 25 of 50 9 of 10 11 of 30 10 of 53 10 of 53 32 of 53 3 of 53 4 of 50 4 of 41 13 of 18 18 of 38 11 of 13 20 of 46 3 of 53 3 of 53 3 of 53
77.36 78.85 66.04 53.85 75.00 76.00 72.09 79.25 15.15 56.10 50.00 10.00 63.33 81.13 81.13 39.62 94.34 92.00 90.24 27.78 52.63 15.38 56.52 94.34 94.34 94.34
_________________________________________________________________________________________________________
Net Sales or Revenues Cost of Goods Sold (Excluding Depreciation) Depreciation, Depletion & Amortization Gross Income Selling, General & Administrative Expenses Other Operating Expenses Operating Expenses - Total Operating Income Extraordinary Credit - Pretax Extraordinary Charge - Pretax Non-Operating Interest Income Reserves - Increase/Decrease Pretax Equity In Earnings Other Income/Expense Net Earnings Before Interest and Taxes (EBIT) Interest Expense on Debt Pretax Income Income Taxes Current Domestic Income Tax Current Foreign Income Tax Deferred Domestic Income Tax Deferred Foreign Income Tax Minority Interest Net Income Before Extra Items/Prefer Dividends Net Income Before Preferred Dividends Net Income Available to Common
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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©2007 Icon Group International, Inc.
Financial Indicators
143
Cost of Goods Sold (Excluding Depreciation) Countries
Value ($K/employee)
Rank
Percentile
510.28 258.20 232.67 225.18 223.36 209.04 160.26 154.50 147.95 139.22 139.21 123.59 121.78 116.45 114.18 113.53 111.25 109.30 108.44 106.36 106.07 104.75 99.09 97.20 90.59 80.91 77.89 76.16 69.13 67.06 65.18 64.90 64.36 64.23 62.56 56.37 55.23 53.41 37.33 35.99 30.09 23.79 21.35 19.89
1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 42 43 45 48 50 51
98.08 96.15 92.31 90.38 88.46 86.54 84.62 82.69 80.77 78.85 76.92 75.00 73.08 71.15 69.23 67.31 65.38 63.46 61.54 59.62 57.69 55.77 53.85 50.00 48.08 46.15 44.23 42.31 40.38 38.46 36.54 34.62 32.69 30.77 28.85 26.92 25.00 23.08 19.23 17.31 13.46 7.69 3.85 1.92
Region
_________________________________________________________________________________________________________
Taiwan South Korea Russia Norway Japan Hungary Germany Portugal France Finland Netherlands Sweden USA Canada Italy Denmark the United Kingdom Singapore Belgium Turkey Mexico Switzerland Austria China Luxembourg Poland Spain Chile Peru Australia Greece Israel Ireland Brazil India New Zealand Hong Kong South Africa Malaysia Thailand Philippines Indonesia Czech Republic Argentina
Asia Asia Europe Europe Asia Europe Europe Europe Europe Europe Europe Europe North America North America Europe Europe Europe Asia Europe the Middle East Latin America Europe Europe Asia Europe Europe Europe Latin America Latin America Oceana Europe the Middle East Europe Latin America Asia Oceana Asia Africa Asia Asia Asia Asia Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
144
Cost of Goods Sold (Excluding Depreciation) (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
248.91 237.56 237.02 232.67 232.13 225.18 209.04 187.98 178.74 175.98 160.26 154.50 147.95 147.89 139.22 139.21 123.59 123.03 115.11 114.18 113.53 111.25 108.44 105.99 104.75 102.21 101.06 99.09 98.15 97.75 95.69 95.69 92.74 90.59 90.13 86.94 80.91 77.89 73.12 72.74 70.00 69.88 65.18 64.36 60.41 60.35 59.62 52.96 21.35 20.26 20.26
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Estonia Belarus Slovakia Russia Lithuania Norway Hungary Ukraine Gibraltar Georgia Germany Portugal France Cyprus Finland Netherlands Sweden Iceland Vatican City Italy Denmark the United Kingdom Belgium Monaco Switzerland Andorra Romania Austria San Marino Liechtenstein Guernsey Jersey Bosnia & Herzegovina Luxembourg Macedonia Serbia & Montenegro Poland Spain Slovenia Moldova Kazakhstan Bulgaria Greece Ireland Malta Albania Isle of Man Faroe Islands Czech Republic Latvia Croatia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
145
Selling, General & Administrative Expenses Countries
Value ($K/employee)
Rank
Percentile
156.68 92.02 91.88 91.26 56.24 53.30 51.41 49.86 49.39 47.36 41.71 37.90 37.45 36.99 36.18 35.84 32.39 31.69 31.60 30.72 27.68 27.41 24.87 24.79 16.43 16.16 14.58 14.18 12.77 12.23 12.18 10.34 10.13 7.64 6.04 5.94 5.65
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 23 24 25 26 27 28 29 30 31 32 33 34 35 36 38 39 41
97.73 95.45 93.18 90.91 88.64 86.36 84.09 81.82 79.55 77.27 75.00 72.73 70.45 68.18 65.91 63.64 61.36 59.09 56.82 54.55 47.73 45.45 43.18 40.91 38.64 36.36 34.09 31.82 29.55 27.27 25.00 22.73 20.45 18.18 13.64 11.36 6.82
Region
_________________________________________________________________________________________________________
Netherlands Israel Taiwan Ireland USA Japan Canada Belgium France Germany Finland Sweden Switzerland Italy Denmark the United Kingdom Luxembourg Turkey Mexico South Korea Russia Chile Hungary Greece Poland Australia Brazil China South Africa Austria Singapore New Zealand Hong Kong Philippines Indonesia Malaysia Thailand
Europe the Middle East Asia Europe North America Asia North America Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe the Middle East Latin America Asia Europe Latin America Europe Europe Europe Oceana Latin America Asia Africa Europe Asia Oceana Asia Asia Asia Asia Asia
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
146
Selling, General & Administrative Expenses (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
156.68 91.26 56.82 49.86 49.39 47.36 41.71 37.90 37.45 37.29 36.99 36.18 35.84 34.95 32.39 30.11 29.62 28.27 28.20 27.68 27.63 27.62 26.85 25.90 24.87 24.79 22.98 22.67 22.37 21.27 20.94 16.43 14.77 14.22 14.19 12.23 12.11 11.81 11.81 11.81 11.39 9.72
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
97.62 95.24 92.86 90.48 88.10 85.71 83.33 80.95 78.57 76.19 73.81 71.43 69.05 66.67 64.29 61.90 59.52 57.14 54.76 52.38 50.00 47.62 45.24 42.86 40.48 38.10 35.71 33.33 30.95 28.57 26.19 23.81 21.43 19.05 16.67 14.29 11.90 9.52 7.14 4.76 2.38 0.00
_________________________________________________________________________________________________________
Netherlands Ireland Iceland Belgium France Germany Finland Sweden Switzerland Vatican City Italy Denmark the United Kingdom Liechtenstein Luxembourg Romania Estonia Belarus Slovakia Russia Bosnia & Herzegovina Lithuania Macedonia Serbia & Montenegro Hungary Greece Malta Isle of Man Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Austria San Marino Monaco Jersey Guernsey Andorra Faroe Islands
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
147
Operating Expenses - Total Countries
Value ($K/employee)
Rank
Percentile
82.06 64.88 63.75 21.39 21.28 19.30 17.64 15.06 9.55 8.88 8.54 7.18 6.66 6.46 6.26 6.06 5.41 5.39 4.64 4.44 4.21 3.33 2.47 1.96 1.82 1.38 1.08 0.97 0.92 0.91 0.87 0.87 0.81 0.19 0.16 0.00 -0.19
1 3 4 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 32 33 34 35 36 37 38 39 40 43
97.67 93.02 90.70 83.72 81.40 79.07 76.74 74.42 72.09 69.77 67.44 65.12 62.79 60.47 58.14 55.81 53.49 51.16 48.84 46.51 44.19 41.86 39.53 37.21 34.88 32.56 30.23 25.58 23.26 20.93 18.60 16.28 13.95 11.63 9.30 6.98 0.00
Region
_________________________________________________________________________________________________________
Philippines Indonesia Norway Netherlands Austria Canada Spain Germany Finland Taiwan Australia France Poland Denmark Switzerland the United Kingdom Luxembourg Italy Brazil Singapore South Africa Belgium India Czech Republic Argentina Malaysia South Korea Russia New Zealand Hong Kong USA Hungary Portugal China Japan Thailand Sweden
Asia Asia Europe Europe Europe North America Europe Europe Europe Asia Oceana Europe Europe Europe Europe Europe Europe Europe Latin America Asia Africa Europe Asia Europe Latin America Asia Asia Europe Oceana Asia North America Europe Europe Asia Asia Asia Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
148
Operating Expenses - Total (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
63.75 21.39 21.28 21.07 20.55 20.55 17.64 16.56 15.06 9.55 7.18 6.66 6.46 6.26 6.06 5.99 5.84 5.77 5.76 5.43 5.41 5.39 4.30 4.15 3.33 1.96 1.86 1.86 1.04 0.99 0.99 0.97 0.97 0.88 0.87 0.87 0.81 0.78 0.77 0.75 0.73 -0.19
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
97.62 95.24 92.86 90.48 88.10 85.71 83.33 80.95 78.57 76.19 73.81 71.43 69.05 66.67 64.29 61.90 59.52 57.14 54.76 52.38 50.00 47.62 45.24 42.86 40.48 38.10 35.71 33.33 30.95 28.57 26.19 23.81 21.43 19.05 16.67 14.29 11.90 9.52 7.14 4.76 2.38 0.00
_________________________________________________________________________________________________________
Norway Netherlands Austria San Marino Guernsey Jersey Spain Slovenia Germany Finland France Poland Denmark Switzerland the United Kingdom Moldova Liechtenstein Kazakhstan Bulgaria Vatican City Luxembourg Italy Monaco Andorra Belgium Czech Republic Latvia Croatia Estonia Belarus Slovakia Russia Lithuania Iceland Hungary Faroe Islands Portugal Ukraine Cyprus Gibraltar Georgia Sweden
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
149
Operating Income Countries
Value ($K/employee)
Rank
Percentile
32.05 24.83 22.38 20.30 20.10 18.30 18.06 17.38 17.34 16.68 13.78 13.07 12.79 11.39 10.22 9.20 9.18 8.87 8.58 8.40 8.21 7.95 7.94 7.80 7.80 6.84 6.79 6.08 6.03 5.87 5.16 4.65 4.40 4.16 4.10 3.46 3.39 3.05 2.69 2.68 1.77 0.99 0.39 0.37 -3.27
1 2 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 35 36 37 38 40 42 43 45 46 49 50 51 52 53
98.11 96.23 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 33.96 32.08 30.19 28.30 24.53 20.75 18.87 15.09 13.21 7.55 5.66 3.77 1.89 0.00
Region
_________________________________________________________________________________________________________
Taiwan South Korea Russia Norway Hungary Australia USA Turkey Mexico Finland Chile Belgium Japan the United Kingdom Italy Canada Switzerland France New Zealand Hong Kong Denmark Netherlands Luxembourg Greece Brazil South Africa Peru Israel Ireland India Sweden China Thailand Austria Pakistan Spain Philippines Singapore Malaysia Indonesia Germany Poland Czech Republic Argentina Portugal
Asia Asia Europe Europe Europe Oceana North America the Middle East Latin America Europe Latin America Europe Asia Europe Europe North America Europe Europe Oceana Asia Europe Europe Europe Europe Latin America Africa Latin America the Middle East Europe Asia Europe Asia Asia Europe the Middle East Europe Asia Asia Asia Asia Europe Europe Europe Latin America Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
150
Operating Income (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
23.94 22.85 22.79 22.38 22.32 20.30 20.10 18.24 18.08 17.19 16.92 16.68 16.52 15.16 14.73 14.21 13.07 11.39 10.30 10.22 9.18 8.87 8.57 8.21 8.06 7.95 7.94 7.80 7.23 7.13 6.03 5.93 5.16 4.16 4.12 4.02 4.02 3.46 3.25 2.95 2.85 1.77 0.99 0.89 0.86 0.86 0.39 0.37 0.37 -3.13 -3.27
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Estonia Belarus Slovakia Russia Lithuania Norway Hungary Iceland Ukraine Gibraltar Georgia Finland Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Belgium the United Kingdom Vatican City Italy Switzerland France Liechtenstein Denmark Faroe Islands Netherlands Luxembourg Greece Malta Isle of Man Ireland Albania Sweden Austria San Marino Guernsey Jersey Spain Slovenia Monaco Andorra Germany Poland Moldova Kazakhstan Bulgaria Czech Republic Latvia Croatia Cyprus Portugal
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
151
Earnings Before Interest and Taxes (EBIT) Countries
Value ($K/employee)
Rank
Percentile
43.94 31.74 31.65 27.88 25.13 24.53 22.58 20.66 17.09 16.46 15.07 14.26 13.35 13.31 13.29 12.99 12.80 12.70 11.54 11.53 11.40 11.34 11.29 10.92 10.60 10.37 10.28 9.84 9.01 8.83 8.62 8.44 7.33 7.24 6.61 5.24 5.18 5.13 4.32 3.27 2.46 2.29 1.50 1.18 -1.69
1 2 3 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 35 38 39 40 41 42 43 44 45 46 47 48 50 53
98.11 96.23 94.34 90.57 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 33.96 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 13.21 11.32 9.43 5.66 0.00
Region
_________________________________________________________________________________________________________
Taiwan Turkey Mexico South Korea Russia Norway Hungary Finland Australia USA Belgium Greece Switzerland Brazil Italy Netherlands Israel Ireland Luxembourg Germany the United Kingdom Japan Chile France Peru Canada Thailand Denmark New Zealand Hong Kong South Africa Austria China Sweden Poland India Spain Singapore Pakistan Malaysia Czech Republic Argentina Philippines Indonesia Portugal
Asia the Middle East Latin America Asia Europe Europe Europe Europe Oceana North America Europe Europe Europe Latin America Europe Europe the Middle East Europe Europe Europe Europe Asia Latin America Europe Latin America North America Asia Europe Oceana Asia Africa Europe Asia Europe Europe Asia Europe Asia the Middle East Asia Europe Latin America Asia Asia Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
152
Earnings Before Interest and Taxes (EBIT) (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
30.16 27.68 26.90 26.88 25.95 25.66 25.60 25.13 25.07 24.53 22.58 20.66 20.30 19.30 19.00 16.63 15.07 14.26 13.40 13.35 13.29 13.22 13.04 12.99 12.70 12.46 11.54 11.53 11.40 10.92 9.84 9.25 8.46 8.44 8.36 8.15 8.15 7.24 6.61 5.94 5.72 5.71 5.18 4.97 4.87 4.79 2.46 2.33 2.33 -1.61 -1.69
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Romania Bosnia & Herzegovina Macedonia Estonia Serbia & Montenegro Belarus Slovakia Russia Lithuania Norway Hungary Finland Ukraine Gibraltar Georgia Iceland Belgium Greece Vatican City Switzerland Italy Malta Isle of Man Netherlands Ireland Liechtenstein Luxembourg Germany the United Kingdom France Denmark Albania Faroe Islands Austria San Marino Guernsey Jersey Sweden Poland Moldova Kazakhstan Bulgaria Spain Monaco Slovenia Andorra Czech Republic Latvia Croatia Cyprus Portugal
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com
©2007 Icon Group International, Inc.
Financial Indicators
153
Pretax Income Countries
Value ($K/employee)
Rank
Percentile
35.27 22.94 19.04 18.58 16.74 16.10 15.83 15.04 13.78 13.74 12.43 11.52 11.43 10.39 10.09 10.01 9.95 9.45 9.33 9.23 9.22 9.10 8.72 8.24 8.19 7.97 7.73 7.64 7.49 6.79 5.98 5.32 4.93 3.91 3.69 3.52 3.33 2.51 2.44 1.24 1.15 0.50 -0.70 -0.89 -1.69
1 2 3 4 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 31 32 34 35 36 37 38 39 40 41 42 43 45 46 47 50 52 53
98.11 96.23 94.34 92.45 88.68 86.79 84.91 83.02 81.13 79.25 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 41.51 39.62 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 15.09 13.21 11.32 5.66 1.89 0.00
Region
_________________________________________________________________________________________________________
Taiwan Norway Finland South Korea Russia Australia USA Hungary Turkey Mexico Belgium Israel Ireland Japan Netherlands Canada the United Kingdom Italy Brazil Thailand Switzerland Germany France Greece Chile Luxembourg South Africa New Zealand Hong Kong Austria Denmark Sweden China Spain Pakistan Singapore India Malaysia Peru Czech Republic Argentina Poland Indonesia Philippines Portugal
Asia Europe Europe Asia Europe Oceana North America Europe the Middle East Latin America Europe the Middle East Europe Asia Europe North America Europe Europe Latin America Asia Europe Europe Europe Europe Latin America Europe Africa Oceana Asia Europe Europe Europe Asia Europe the Middle East Asia Asia Asia Latin America Europe Latin America Europe Asia Asia Europe
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Pretax Income (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
22.94 19.04 17.91 17.09 17.05 16.74 16.70 15.99 15.04 13.53 13.09 12.86 12.66 12.43 12.01 11.68 11.43 11.26 10.09 9.95 9.53 9.45 9.22 9.10 8.72 8.60 8.24 7.97 7.64 7.54 7.18 6.79 6.73 6.56 6.56 5.98 5.32 3.91 3.68 3.41 3.29 2.13 1.24 1.17 1.17 0.50 0.45 0.43 0.43 -1.62 -1.69
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00
_________________________________________________________________________________________________________
Norway Finland Estonia Belarus Slovakia Russia Lithuania Iceland Hungary Ukraine Romania Gibraltar Georgia Belgium Bosnia & Herzegovina Macedonia Ireland Serbia & Montenegro Netherlands the United Kingdom Vatican City Italy Switzerland Germany France Liechtenstein Greece Luxembourg Malta Isle of Man Faroe Islands Austria San Marino Guernsey Jersey Denmark Sweden Spain Slovenia Monaco Andorra Albania Czech Republic Latvia Croatia Poland Moldova Kazakhstan Bulgaria Cyprus Portugal
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Income Taxes Countries
Value ($K/employee)
Rank
Percentile
15.94 6.93 5.67 5.59 5.51 5.06 5.01 4.84 4.83 4.52 4.39 4.33 4.32 4.20 4.06 3.73 3.07 2.63 2.59 2.59 2.48 2.46 2.24 1.74 1.60 1.59 1.46 1.20 1.13 1.03 1.02 0.92 0.90 0.89 0.81 0.71 0.58 0.22 0.17 0.03 0.02 -0.89
1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 41 42 44 47 48 50
98.00 96.00 94.00 92.00 90.00 88.00 86.00 84.00 82.00 78.00 76.00 74.00 72.00 70.00 68.00 64.00 62.00 60.00 58.00 56.00 54.00 52.00 50.00 48.00 46.00 44.00 42.00 40.00 38.00 36.00 34.00 32.00 30.00 28.00 26.00 24.00 18.00 16.00 12.00 6.00 4.00 0.00
Region
_________________________________________________________________________________________________________
Norway Taiwan Belgium Finland Australia Italy South Korea Japan USA Russia Netherlands Turkey Mexico Canada Hungary the United Kingdom Greece Germany Austria Switzerland South Africa France Luxembourg Sweden Israel Ireland Denmark Singapore Chile Spain Brazil New Zealand Hong Kong India Thailand Malaysia China Philippines Indonesia Portugal Poland Peru
Europe Asia Europe Europe Oceana Europe Asia Asia North America Europe Europe the Middle East Latin America North America Europe Europe Europe Europe Europe Europe Africa Europe Europe Europe the Middle East Europe Europe Asia Latin America Europe Latin America Oceana Asia Asia Asia Asia Asia Asia Asia Europe Europe Latin America
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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Income Taxes (Communications Equipment) Countries in Europe
Value ($K/employee)
Rank
Percentile
15.94 5.67 5.59 5.11 5.06 4.88 4.83 4.61 4.60 4.52 4.50 4.39 4.12 4.06 3.78 3.73 3.67 3.65 3.54 3.47 3.42 3.07 2.84 2.81 2.63 2.59 2.59 2.57 2.50 2.50 2.46 2.42 2.24 1.74 1.59 1.46 1.16 1.12 1.03 0.96 0.87 0.03 0.03 0.02 0.02 0.02 0.02 -0.78
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
97.92 95.83 93.75 91.67 89.58 87.50 85.42 83.33 81.25 79.17 77.08 75.00 72.92 70.83 68.75 66.67 64.58 62.50 60.42 58.33 56.25 54.17 52.08 50.00 47.92 45.83 43.75 41.67 39.58 37.50 35.42 33.33 31.25 29.17 27.08 25.00 22.92 20.83 18.75 16.67 14.58 12.50 10.42 8.33 6.25 4.17 2.08 0.00
_________________________________________________________________________________________________________
Norway Belgium Finland Vatican City Italy Iceland Estonia Belarus Slovakia Russia Lithuania Netherlands Romania Hungary Bosnia & Herzegovina the United Kingdom Macedonia Ukraine Serbia & Montenegro Gibraltar Georgia Greece Malta Isle of Man Germany Austria Switzerland San Marino Guernsey Jersey France Liechtenstein Luxembourg Sweden Ireland Denmark Monaco Andorra Spain Slovenia Faroe Islands Portugal Cyprus Poland Moldova Kazakhstan Bulgaria Albania
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
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4 4.1
MACRO-ACCESSIBILITY IN FINLAND EXECUTIVE SUMMARY
Since joining the European Union (EU) in 1995, Finland with its population of 5.2 million and once viewed as a remote northern outpost, has become a robust market for a variety of international businesses. A Nordic country, Finland shares a long border with Russia. Finland has a unique position as the center of a rapidly developing marketplace formed by northwestern Russia, Scandinavia and the Baltic States, with about 80 million prospective consumers. Finland’s business attitude towards the United States is very positive. Commercial relations between Finnish and U.S. companies are often based on many years of mutual experience. New companies, with innovative and competitively priced products, will find a welcoming market – with new partners often willing to go the extra mile to ensure success. Finland’s import climate is open and receptive to U.S. products and investments. There are no significant trade barriers or regulations that U.S. firms need to take into consideration.
4.1.1
Nokia – A Big Company in a Small Country
No guide about Finland would be complete without mentioning Nokia. Headquartered in Finland, this mobile phone maker has grown to become a multi-national giant in a small country. Its contribution to the Finnish economy is significant. Nokia remains the major player in the ICT cluster. But it is not alone. There are thousands of small and medium-sized companies in the cluster. Hundreds are direct first-tier suppliers to Nokia, known in Finland as the “Nokia network”. Finland’s mobile communications standard-bearer, Nokia, has established itself as one of the World’s most valuable and prominent brands. However, Finnish high-tech is much more than just mobile phones and telecommunications technology. The technology spill off from the electronics area can also be seen in other market sectors, such as environmental products, biotech and the medical industries.
4.1.2
Finnish-U.S. Trade
The United States is Finland’s most important trading partner outside of Europe. Major exports from the United States to Finland continue to be machinery, telecommunications equipment and parts, aircraft and aircraft parts, computers, peripherals and software, electronic components, electric machinery, chemicals, medical equipment and some agricultural products. The primary competition for American companies comes from European suppliers, especially German, Swedish, and British. The main export items from Finland to the United States are ships and boats, paper and paperboard, refined petroleum products, telecommunications equipment and parts.
4.1.3
Finland: A Springboard to Russia and the Baltic States
The value of Finland’s gateway position between east and west was also noted when Finland became a member of the EU; this position was strengthened during Finland’s EU Presidency (July-December 1999). As an EU member state bordering Russia, Finland remains vital as a trans-shipment channel to Russian markets, especially the
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northwestern regions. About 40 percent of the EU’s road shipments to Russia are shipped from Finland or arrive via Finland. Finns know how to do business in Russia and the Baltic States. Finland’s excellent infrastructure and its geographical proximity to Russia and the Baltic countries, especially Estonia, give Finland an advantage as a gateway to these burgeoning markets. Many foreign and U.S. companies are using Finland as a base for opening their transportation and marketing activities to the former Soviet Union, taking advantage of established logistics and distribution networks.
4.2
ECONOMIC FUNDAMENTALS AND DYNAMICS
On January 1, 1999, eleven EU member countries including Finland joined the third stage of the European Monetary Union (EMU). This third and final stage of EMU commenced with the irrevocable locking of the exchange rates of the eleven currencies participating in the Euro area and with the conduct of a single monetary policy under the responsibility of the European Central Bank (ECB). The Finnmark (FIM) was pegged to the Euro at 5.9457. on January 1, 2002, the Finnmark was replaced by the Euro, and the Finnmark ceased to be legal tender as of March 1, 2002.
4.2.1
Government Intervention Risks
During the severe recession of the early 1990s, the Finnish government’s financial position deteriorated rapidly. The government became deeply indebted because, as tax revenues fell, transfer payments under the country’s extensive social welfare programs rose dramatically. At the same time, the government was forced to bail out several major banks whose failure would have prompted a collapse of the banking system. Since then, the major aim of the government’s fiscal policy, in addition to curbing unemployment, has been to curb the growth of debt. The Finnish government has traditionally played a dominant role in the economy. In the decades since World War II, state-owned companies have held a dominant position in Finland’s national economy. The basic strategy for the privatization process has been to treat each company as an individual case. The aim of the new government is to be an active shareowner, to develop the companies concerned and to increase the value of the holding. Incomes from any sale of state-owned companies are channeled into R&D financing or into capital finance for Finnish Industry Investment Ltd, a government-owned investment company. It engages in equity capital investment and invests in venture capital funds, private equity funds and directly in selected target companies. Finnish Industry Investment Ltd is administered by the Ministry of Trade and Industry.
4.2.2
Balance of Payments Issues
With the onset of Stage Three of EMU on January 1, 1999, Finland’s balance of payments lost its importance for monetary and exchange rate policy. In the future, the European Central Bank will aggregate all of the EMU member states’ balance of payments and report them quarterly. Only the current account for the whole Euro area can affect the Euro´s exchange rate against other major currencies. Investment outflows continue to exceed direct investment in Finland. Some tax changes, the promotion of Finland as a gateway for Russian markets and Finnish membership in the EU encourage foreigners to invest more in Finland.
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Infrastructure Development
Finland has a well-developed infrastructure. Finland’s transportation system is based on an efficient rail and road network, supported by a wide network of freight forwarders and trucking companies. Finland’s domestic distribution system for goods and services is efficient. Finland has over 50 merchant shipping ports, of which more than 10 are located on inland waterways connected to the Baltic Sea by the Saimaa Canal. Twenty-three seaports are open year round. Finnish ports, 15 of which deal with transit traffic through Finland, can handle a wide range of cargo. The 10 biggest ports handle more than 75 percent of all sea-borne cargo traffic. The ports near the Russian border (Hamina, Kotka and Mustola) concentrate on forestry goods, bulk cargo and free zone activities. Ports are secure and automated; loading and unloading operations are consistently quick and trouble-free. The well-functioning transportation system and the fact that Finland’s rail gauge is the same as Russia’s make the country a good transshipment point for Russian trade. The E18 road, from Kristiansand, Norway, through Sweden and Finland, to St. Petersburg, Russia, is part of the European Union Trans European Road Network system, connecting EU-member Nordic capitals with efficient roads. Finland’s international telecom set-up began to admit limited competition in 1993, with further deregulation on July 1, 1994. on the domestic telecommunications front, competition entered the picture at the beginning of 1994. Finland’s telecommunications environment is one of the most advanced in Europe and the growth of international telecom is of significant importance to the Finnish economy. The number of mobile telephones exceeded the number of fixed line connections already in 1998 in Finland. The number of Internet hosts per 1000 inhabitants amounts to 183; Internet penetration in Finland is the second highest in the world, right after the U.S. Finland was the first country to grant licenses for third generation mobile networks. Four telecommunications companies have received licenses to construct a third generation (3G) mobile network. Almost every Finn has access to broadband networks. Fiber optic cables cover 95 percent of Finnish municipalities and 99 percent of the population live in these municipalities. Altogether 98 percent of Finns live within a few kilometers of high-speed fiber optic cable networks. The large number of connections in educational institutions and workplaces compensate for the relative lack of household connections. The change in household structures in the direction of single-person households is slowing down the spread of IT through the population. In 1999, significant steps were taken to establish a digital television system in Finland, when the Ministry of Transport and Communications granted licenses for digital television channels. The licenses were granted for 10 years, from September 2000 to August 2010. The government also granted licenses for three special digital channels and a television channel that broadcasts regional programs. Digital transmissions began on August 27, 2001.
4.3 4.3.1
POLITICAL RISKS Economic Relationship with the United States
Relations between the United States and Finland are excellent and free from bilateral disputes except for occasional trade disputes, now largely covered by the broader U.S. - EU trade relationship. The U.S. cooperates with Finland in various international organizations such as the UN, OSCE and OECD. Finland’s 1995 accession to the European Union (EU) has added a new dimension to U.S.-Finnish relations. Both countries share a deep interest in the stable political and economic development of Russia and the Baltic States. This interest is reflected in the U.S. Enhanced Partnership in Northern Europe initiative (ePINE) and the Finnish-inspired EU Northern Dimension program. Finland remains militarily non-aligned; it is an active member in NATO’s Partnership for Peace (PfP) program.
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The Political System
Finland is a parliamentary democracy headed by a president, although presidential power has been somewhat reduced by the country’s new constitution, which took effect on March 1, 2000. The president is elected for a sixyear term and has primary responsibility for bilateral relations and national security issues. The Prime Minister, on the other hand, is the head of government and has responsibility for domestic and EU affairs. Parliamentary elections are normally held every four years.
4.4 4.4.1
MARKETING STRATEGIES Creating a Sales Office
If a foreign organization intends to establish an office in Finland, the following steps should be taken: 1)
Drafting the Memorandum of Association
2)
Drafting the Articles of Association
3)
Subscription of the shares
4)
Constituent meeting of the shareholders
5)
Adoption of the Articles of Association
6)
Payment of the capital share
7)
Registration of a limited company
For further information, please contact the Employment and Economic Development Center (www.te-keskus.fi) and/or Invest in Finland Bureau (www.investinfinland.fi).
4.4.2
Creating a Joint Venture
Several U.S. companies have established themselves in the Finnish market with subsidiaries or joint ventures, with particular interest in access to Finnish-Russian joint ventures. A number of Finnish firms are interested in using their long-established contacts in the former Soviet Union and the Baltic countries to market U.S. goods. Due to its physical proximity and Finland’s network of railroad and air connections, there are many strong selling features regarding access to Russia. As a full member of the European Union, Finland has its feet firmly planted in the West but possesses unique access to and expertise about the Russian market.
4.4.3
Agents and Distributors
One exclusive agent/distributor is usually appointed to cover the entire country, mainly due to the relatively small size of the Finnish market. Finnish importers often represent several different product lines. In selecting a representative, the exporter should check whether that company handles competing products. Consumer goods and similar merchandise requiring maintenance of stock are often imported through wholesalers or trading houses. Such products may also be sold directly to retail chains, department stores, and other retail outlets.
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Contacting local trade associations for a list of importers is a good way of finding a distributor in Finland. Finnish importers attend major trade fairs in Europe and in the United States in order to find new products and ideas, but also to find new representation.
4.4.4
Checking Bona Fides
Dun & Bradstreet Finland Oy and Suomen Asiakastieto Oy offer a variety of business and credit information services. For further information, please contact: Dun & Bradstreet Finland Oy Vattuniemenkatu 21 A FIN-00210 Helsinki, Finland Tel: +358-9-2534 4400 Fax: +358-9-502 2940 E-mail:
[email protected] www.dnb.com Or any Dun & Bradstreet office in the U.S. Suomen Asiakastieto Oy P.O. Box 16 FIN-00581 Helsinki, Finland Tel: +358-9-148 861 Fax: +358-9-753 3231 E-mail:
[email protected] www.asiakastieto.fi Suomen Asiakastieto Oy’s partner in the U.S.: Veritas 121 Whitney Avenue New Haven, CT 06510 Tel: (203) 503-6700 Fax: 781-3833 E-mail:
[email protected] www.veritas-usa.com
4.4.5
Distribution Channel Options
Distribution channels in Finland are similar to those in the United States. Goods may be sold through an agent, distributor, established wholesaler, or selling directly to retail organizations. Most of the larger importers, wholesalers and trading houses are members of the Federation of Finnish Commerce and Trade (FFCT), which is a central organization of 41 trade associations covering the bulk of foreign goods sold to Finnish trade and industry. The members of FFCT are particularly strong in certain specialized sectors, such as electronics, electric components and instruments, pharmaceutical and health care products, technical products and machinery, raw materials and chemicals. The majority of Finnish commission agents are members of the Finnish Foreign Trade Agents’ Federation, which has 18 divisions for different products. These commission agents are relatively small, private companies, most of them operating in sectors such as textiles, apparel, furnishings and raw materials.
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Selling Strategies
Selling factors and techniques are very similar in Finland to those in the United States. Terms generally applied to international trade with industrialized countries apply to selling in Finland. When selling to the Finnish market, it is recommended that a local agent/distributor who has a sales network covering the whole of Finland be appointed. Only one local distributor is needed to cover the whole country, since Finland is a small market, but distances are long and therefore a distributor with a countrywide network is most desirable. Consumer goods and similar merchandise requiring maintenance of stock are often imported through wholesalers or trading houses. These products can also be sold directly to retail chains, department stores and other retail outlets. U.S. suppliers should provide the local distributor with English language product literature and export prices. Strong promotion efforts are very important to introduce new products into the Finnish market.
4.4.7
Pricing and Licensing
Product Licensing agreements are quite common in Finland because of the good quality of Finnish manufacturing, the small size of the market and the relatively high cost of transporting goods to the country. Royalties and licensing fees may be freely transferred out of Finland. All goods and services are subject to VAT, which ranges from 8 percent on books, drugs and pharmaceuticals, 17 percent on foodstuffs and feeds, to 22 percent on industrial goods. Excise taxes are levied on fuel, alcohol, beer, tobacco, soft drinks and mineral water. Finland is an EU (European Union) country. Imports from the other EU (European Union) countries enter Finland duty-free and without customs formalities. The EU also has free trade agreements with a large number of non-EU countries (e.g. countries that belong to the PAN-European cumulation and EFTA (European Free Trade Association) countries. Imports from these countries, with some exceptions, enter Finland duty-free if the products have been manufactured in one of these countries. However, import duties are levied on imports from countries such as the United States, Australia, Japan and Canada, depending on specific product lines.
4.4.8
Advertising Options
All media in Finland is open for advertising. There are two regulatory structures in place concerning marketing, the Consumer Protection Act and the Act on Unfair Business Practice. The Consumer Ombudsman and the Marketing Court control advertising. The general rule is that advertisements may not contain claims which cannot be substantiated or which are offensive to minorities (race, sex, etc.). There are also restrictions concerning the use of children in advertising. Advertising of tobacco products and spirits is completely prohibited in Finland’s mass media. However, advertising of beer, wines, and low alcohol level beverages (less than 22%) has been allowed since 1995.
Major Newspapers Helsingin Sanomat P.O. Box 77 FIN-00089 Sanomat, Finland Tel: 358-9-1221 Fax: 358-9-605 709 www.helsinginsanomat.fi
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Aamulehti P.O. Box 327 FIN-33101 Tampere, Finland Tel: 358-3-266 6111 Fax: 358-3-266 6259 www.aamulehti.fi
Business Magazines and Journals Kauppalehti (Business Daily) P.O. Box 189 FIN-00101 Helsinki, Finland Tel: 358-9-507 81 Fax: 358-9-660 383 www.Kauppalehti.fi Taloussanomat (Business daily) P.O. Box 35 FIN-00089 Sanomat, Finland Tel: 358-9-1221 Fax: 358-9-122 4179 www.taloussanomat.fi Talouselama (Business weekly) P.O. Box 920 FIN-00101 Helsinki, Finland Tel: 358-20 442 40 Fax: 358-20 442 4130 www.talentum.com
E-Commerce Web Sites •
SoneraPlaza: http://plaza.fi/
•
Elisa Communications: www.elisa.com
•
Jippii Group: www.jippii.fi
4.4.9
Trade Promotion
The main fair centers in Finland are located in the cities of Helsinki, Jyvaskyla, Turku, Tampere and Lahti. For further information, please contact: The Finnish Fair Corporation P.O. Box 21 FIN-00521 Helsinki, Finland Tel: 358-9-150 91 Fax: 358-9-142 358 http://www.suomenmessut.fi Jyvaskyla Fair Ltd. www.icongrouponline.com
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P.O. Box 127 FIN-40101 Jyvaskyla, Finland Tel: 358-14-334 0000 Fax: 358-14-610 272 www.jklfairs.fi/ Lahti Fair Ltd. P.O. Box 106 FIN-15141 Lahti, Finland Tel: 358-3-525 820 Fax: 358-3-525 8225 www.lahdenmessut.fi/ Turku Fair Center Ltd. P.O. Box 57 FIN-20201 Turku, Finland Tel: 358-2-337 111 Fax: 358-2-2401 440 http://www.turunmessukeskus.fi Tampere Trade Fairs Ltd. P.O. Box 163 FIN-33201 Tampere, Finland Tel: 358-3-2516 111 Fax: 358-3-2123 888 www.tampereenmessut.fi/html/indeng.html Supplying As a rule, one exclusive agent/distributor is appointed to cover the entire country. Finnish importers often represent several different product lines. Importers may serve large customers themselves while dealers work with smaller customers, often located outside the Helsinki metropolitan area. Dealers are often specialized in supplying a specific industry area. Training, usually organized and carried out by dealers, is an important aspect. Service points should cover the whole country rather than just the southern parts.
4.4.10
Public Sector Marketing
Finnish procurement agencies follow the procurement procedures of the EU and the World Trade Organization (WTO). The EU rules of procurement and the WTO’s GPA agreement only apply to procurements of or above the threshold value. National legislation requires procurement units to submit competitive tenders for procurements that fall below the threshold value. This is done by sending requests for tenders to a number of potential suppliers or by publishing an announcement. The main principles of procurement are that purchases should be made on an open and competitive basis, and that suppliers should be treated equally. The principle of openness stipulates that the procurement unit announce, on a sufficiently large scale, that it is making a purchase. The principle of equality and non-discrimination entails that the decision to buy must be made in accordance with established criteria. Of the offers received, the lowest offer or the one which is the most affordable in terms of overall economy, has to be selected. Information on threshold values can be found at www.vn.fi/ktm/2/julha/english/index.html.
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165
IMPORT AND EXPORT REGULATION RISKS Adherence to Free Trade Agreements
Finland joined the EU on January 1, 1995, which means that Finland complies with trade agreements that the EU has made with third countries. Finland is also a member of the European Free Trade Association and the European Economic Area.
4.5.2
Trade Barrier Risks
Finland’s adoption of EU internal market practices in 1995 defines Finland’s trade relations both inside the EU and with non-EU countries. Finland replaced its turnover tax with a value-added tax in June 1994. While the change has had little effect on overall revenues, several areas not previously taxed or taxed at a lower rate, including many corporate and consumer services and construction, are now subject to the new VAT in conformity with EU practices. The government has kept the basic VAT rate at the same level as the old turnover tax, which is 22 percent. Food products are taxed at 17 percent. Sport facilities usage, medicines, books, cinemas, passenger transport services, hotel and other accommodation, entertainment performances, sporting events, zoos, museums, and other such events or institutions are taxed at 8 percent. Other services, including health care, education, insurance, newspaper & periodical subscriptions and rentals are not subject to VAT. Agricultural and forestry products continue to be subject to different forms of taxation outside the VAT. A uniform tax rate of 28 percent on capital gains took effect in 1996, which includes dividends, rental income, insurance, savings, forestry income, and corporate profits. The tax rate on capital income and corporate income was raised from 28 percent to 29 percent from the beginning of year 2000. In March 1997 EU commitments required the establishment of a tax border between the autonomously governed, but territorially Finnish, Aland Islands and the rest of Finland. As a result, the trade of goods and services between the rest of Finland and Aland Islands is now treated as if it were trade with a non-EU area. Even though the Aland Islands are part of the EU, just as Finland is, Aland does not belong to the Union’s tax area. This exception was drafted in order to protect the important shipping traffic and the tax-free sales when EU countries abandoned dutyfree sales. The trade effect of this treatment is minimal since the Aland Islands are part of the EFTA tariff area. Finland has also introduced EU practices on imports of agricultural products. Some agricultural goods are subject to the standard import-licensing system, EU-wide quotas, import taxes or other provisions. In mid-1996 the Finnish government’s inter-ministerial licensing authority began, within the EU, selectively to oppose American company applications for commercialization of genetically modified organisms (GMOs) such as insect-resistant corn. Finland’s attitude towards biotechnology is markedly more open than in many other EU Member States and Embassy Helsinki has been working actively with Finnish partners to distribute accurate and scientific information on this issue.
4.5.3
Tariff Rates
Duties and other import taxes are levied on the customs value of the goods at the point of importation. The customs value is based on the transaction value of the goods imported. In practice, the C.I.F. value is commonly used as the customs value. To assess customs value, the place of importation must be indicated. In the case of sea and air cargo, the place of importation is the unloading location. In surface transportation, it is the Customs Office at the frontier. The customs value is determined according to the GATT Valuation Agreement and the Community Customs Code www.icongrouponline.com
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(Council regulation 2913/92) and the Regulation Laying down Provisions for Implementation of the Customs Code (Commission regulation 2454/93).
4.5.4
Restrictions on Imports
Finnish law prohibits the import of the following products: •
PCB and PCT chemicals used in transformers and condensers causing problem waste products
•
Whale meat
4.5.5
Local Standards
Finland uses the metric system. Products for sale in Finland should be adapted to the metric system whenever possible. It is also highly recommended that U.S. products imported into Finland meet international or European standards. Examples of products where conformity to directives is mandatory are electric equipment, machines, toys, pressure vessels, construction products and personal protective equipment. In these cases CE-marking acquired in any EU/EEA country is also valid in Finland. There are several Notified Bodies in Finland participating in the CEmarking procedures. The central body for standardization in Finland is the Finnish Standards Association - SFS (www.sfs.fi). SFS and its standards writing bodies, SESKO Standardization in Finland (www.sesko.fi) and Finnish Communications Regulatory Authority (www.ficora.fi) are members of the European standards organizations CEN, CENELEC and ETSI. National SFS Standards are sold in Finland only by SFS. National ISO member bodies abroad handle distribution of SFS standards. SFS and SESKO are the Finnish sources for all international standards and drafts of the International Organization for Standardization (ISO), for European standards and drafts of CEN and for publications of ISO member bodies. SFS also distributes other foreign standards and technical regulations. The only organization that develops standards in Finland is the Finnish Standards Association (www.sfs.fi).
List of Finland’s Main National Testing or Conformity Assessment Bodies Low voltage (LVD): •
SGS Fimko Oy (www.fimko.fi)
Simple pressure vessels (SPVD): •
Inspecta Oy (www.inspecta.fi)
Construction products: •
VTT Building and Transport (www.vtt.fi/rte)
•
SFS-Inspecta Sertifiointi Oy (www.sfs-sertifionti.fi)
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Sahkotarkastus Fimtekno Oy (www.fimtekno.fi)
•
Contesta Oy (www.contesta.fi)
•
Oy DNV Certification Ab (www.dnv.fi)
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Electromagnetic compatibility (EMC): •
Competent Bodies - SGS Fimko Oy (www.fimko.fi), Nemko Oy (www.nemko.fi), TCC Salo (www.finas.fi), NATLABS Oy - Nordic Accredited Testing Laboratories (www.natlabs.fi)
•
Competent Administrative Authority – Turvatekniikan keskus – Safety Technology Authority (www.tukes.fi)
Personal protective equipment (PPE): •
Tyoterveyslaitos – Finnish Institute of Occupational Health (www.ttl.fi)
Explosives for civil use: •
Finnish Defense Forces Technical Research Center (PvTT) (www.mil.fi)
Medical devices: •
VTT Industrial Systems (www.vtt.fi)
Equipment explosive atmospheres (ATEX): •
VTT Industrial Systems (www.vtt.fi)
Recreational craft: •
VTT Industrial Systems (www.vtt.fi)
Lifts: •
Sähkötarkastus Fimtekno Oy (www.fimtekno.fi)
•
Oy Elspecta Ab (www.hissiproffat.fi)
•
Suomen Hissitarkastus Oy
Pressure equipment (PED) •
Inspecta Oy (www.inspecta.fi)
•
Polartest Oy (www.polartest.fi)
Machinery: •
VTT Industrial Systems (www.vtt.fi)
•
SGS Fimko Oy (www.fimko.fi)
Diagnostic medical devices: •
VTT Industrial Systems (www.vtt.fi)
Radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity: •
Finnish Communications Regulatory Authority: Viestintävirasto (www.ficora.fi)
Transportable pressure equipment •
Polartest Oy (www.polartest.fi)
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Noise emission in the environment by equipment for use outdoors: •
Maa- ja elintarviketalouden tutkimuskeskus – Agrifood Research Finland (www.mtt.fi)
Product Certification Product certification is voluntary.
Accreditation Please contact the Finnish Accreditation Service, FINAS (www.mikes.fi).
Technical Regulations EU member states have to inform and consult each other and the Commission before they adopt new national technical regulations for products or services of the Information Society. The information procedure is based on Directive 98/34/EC of the European Parliament and the Council, as amended by Directive 98/48/EC. The above Directives have been implemented in Finland through a Government Decision. The Decision obliges all parties drafting technical regulations to notify the Ministry of Trade and Industry of the drafts. The Ministry is the National Contact Point in contacts with both the Commission and with national authorities, industrial associations and other stakeholders. Further details, and draft technical regulations and the final texts of regulations of all member states which are public documents, are available on the TRIS (Technical Regulation Information System) Web pages of the Commission Directorate-General for Enterprise: http://europa.eu.int/comm/enterprise/tris/about/index_en.htm.
4.5.6
Labeling Issues
Labeling and marking requirements in Finland are based on the Act on Product Safety, which was enacted in accordance with the EU directive on general product safety. The following information should be included in retail packaging, or otherwise marked on the product (a sticker, label, etc.): •
Name of the product (indicating clearly the contents of the package)
•
Name of the manufacturer or the name of the company that had the product manufactured
•
Amount of contents (weight or volume of the contents to be specified, measures in metric system).
If warranted by safety considerations or economic security of the consumer, the following information should also be included on the retail packaging or otherwise clearly identified on the product: contents of the product, care instructions, operating instructions, and a warning of possible danger related to the use or disposal of the product. Finland has precise labeling requirements for foodstuff. A retail-size food package must show the name of the manufacturer, packer or importer, commercial name of the product, net metric weight or volume, ingredients in descending order of weight, last recommended date of sale, and storage instructions if perishable or intended for infants. Mandatory information described above must be provided in Finnish and Swedish.
The Swan Label Besides the CE Mark, which is required across the European Union, the Swan Label is a neutral and reliable Nordic Environmental Label. It directs products, their production and consumption into a more environmentally friendly direction. The Swan Label indicates that the products burden the environment less than other corresponding products - without compromising performance characteristics.
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The European Eco-Label The purpose of the European Eco-Label is to promote the development, manufacture, marketing, and use of products that least burden the environment. To consumer, the Eco-Label gives better and more reliable information on the environmental friendliness of the product (http://europa.eu.int/ecolabel). Key contact: SFS-Standardisointi (Finnish Standards Association) Maistraatinportti 2 FIN-00240 Helsinki Finland Tel: 358-9-149 9331 Fax: 358-9-146 4925 E-mail:
[email protected] www.sfs.fi
4.5.7
Controls on Exports
Finland is an active participant in all export control regimes, notably the Nuclear Suppliers Group (NSG), the NPT Exporters Committee (Zangger Committee), the Missile Technology Control Regime (MTCR), the Australia Group (AG) and the Wassenaar Arrangement (WA). Finland chaired the Zangger Committee in 1989-93 and the NSG in 1995-96 and was the chair of the MTCR until fall 2001. A basic principle of Finland’s export control policy is that there is no published or unpublished “black list” of undesired destinations except those subject to sanctions by the UN or the EU. All license applications are considered on a case-by-case basis, taking into account the information exchanged within the relevant export control regime.
Ministry for Foreign Affairs The Ministry for Foreign Affairs (MFA) is in charge of Finnish non-proliferation policy as well as the security and trade policy aspects of export controls. In the MFA, the Political Department and its Division for Non-Proliferation, Arms Control and Disarmament, coordinates Finland’s participation in the international cooperation concerned, for example in the export control regimes. The MFA’s Department of External Economic Relations monitors export controls from the trade policy point of view. Ministry for Foreign Affairs Division for Non-Proliferation, Arms Control and Disarmament Tel: +358-9-16005 Fax: +358-9-16056066 http://formin.finland.fi/english
4.5.8
Import Tariffs and License Requirements
Most goods can be imported into or exported from Finland without a special permit. Some restrictions apply, however. Finland follows the import-licensing procedures of the EU. Licenses can be applied for from the National Board of Customs. Certain agricultural products are subject to import duties and/or fees imposed in accordance with EU rules and regulations. Among the products subject to these duties and fees are cereals, flour, certain fats and oils, fish products, butter, cheese, eggs, poultry, meat, cattle and hogs. The transitional period that allowed Finland to
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maintain its stricter (than EU) import regulations on certain agricultural products (primarily meat and livestock) expired in 1998.
4.5.9
Customs Regulations and Contact Information
Customs duties are levied on goods imported to Finland. As a member of the EU, Finland is part of the EU-wide Customs Territory and applies EU Custom’s legislation. You can consult Customs Information for customs related matters. Suomen Tulli (Finnish Customs) PL 512 FIN-00101 Helsinki, Finland Tel: +358 20 391 100 Fax: +358 20 492 1812 (See also www.tulli.fi)
4.5.10
Entering Temporary Imports
Temporary exemption from duty can be granted, for instance, to the following: •
Goods intended for public displays at exhibitions and fairs
•
Commercial samples
•
Professional tools and equipment
If the goods are put to unauthorized use or are not exported within the prescribed time they must go through normal customs clearance and become liable for relevant duties and taxes. In Finland, the ATA-Carnet, the international customs documentation for temporary duty-free admission is issued by the Chamber of Commerce. The ATA-Carnets are frequently used for temporary imports e.g. samples, exhibition materials, and professional equipment (laptop computers, software), and are valid for one year.
4.5.11
Additional Trade Issues
Certain import/export items need to meet with special requirements and certifications set by the EU or national standards. These are mostly articles that might damage health, welfare or country’s economy, or result in the spread of animal and plant diseases. The following items, among others, are subject to restrictions: •
Foodstuffs
•
Fodder and fertilizers
•
Alcoholic beverages and other products containing alcohol
•
Pharmaceuticals
•
Narcotics and dangerous drugs
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Some chemicals
•
Nuclear and radioactive substances
•
Explosives
•
Blade knives firearms and ammunition
•
Obscene publications
•
Pressure vessels
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Free Trade Zones and Warehouses
Finland has one free port in Hanko, located at the southernmost tip of the country. The port has a year-round railwayferry link with Turku. In addition, there are 20 storage areas in other locations in the country. The duty-free storage areas, which are usually run by municipal corporations, are available to domestic and foreign-owned companies. Warehousing, assembly and manufacturing are allowed in these areas, with permission from the Board of Customs.
4.6 4.6.1
INVESTMENT CLIMATE Openness to Foreign Investment
The Finnish Government maintains a favorable attitude toward direct foreign investment. In 1993, laws restricting foreign ownership were abolished to support the already commonly accepted liberal treatment of foreign investments in Finland. Because of liberalization, Finland’s EU entry, the opening of former Soviet markets - creating opportunities for Finland to act as a gateway - and the economic recovery, foreign investment in Finland has accelerated in recent years. Unlike many other countries, however, Finland does not “positively” discriminate in favor of foreign-owned firms by giving them tax holidays or other subsidies not available to other firms in the economy. Instead, Finland relies on “condition-providing policies” which means pursuing policies that offer all firms in the economy appropriate conditions and sufficient pools of advanced factors of production, including an educated labor force and well-functioning infrastructure. There are some legal requirements for non-European Area residents (persons or companies) to conduct business in Finland. In certain areas involving specific safety or health hazards or financial risks, specific conditions must be met to conduct trade. These regulated forms of trade are governed by section 3 of the Trade Act as well as by specific legislation. A non-European Economic Area resident (person or company) operating in Finland must refer to the authorities to obtain a license or a notification when starting a business in the “regulated” forms of trade, including: banking and insurance, nuclear energy-related activities, mining, manufacturing and sale of medicinal substances, dangerous chemicals and explosives, private security services, travel agencies, restaurant and catering services. Supply of mandatory labor pension insurance and workers’ compensation is possible only through a company established in Finland. This provision is designed to ensure compliance with social security legislation. The Aland Islands are an exception to common Finnish practice. Based on international agreements dating from 1921, property ownership and the right to conduct business are limited to only those individuals with right of domicile in the Aland Islands. The “Invest in Finland” Bureau operates within the government-sponsored Finpro (formerly Finnish Foreign Trade Association). Its purpose is to provide potential investors with detailed information on investing in Finland (www.finpro.fi).
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Conversion and Transfer Policies
Finland does not have any exchange controls. There are no restrictions on transferring investment capital or profits abroad in freely convertible currencies at a legal market rate. There is no limit on dividend distributions, as long as they correspond to a company’s official earnings records. Foreign investors are not required to pay tax on capital gains or investment income derived from Finland. The stamp duty on transactions conducted on the Stock Exchange and on the OTC market has been abolished. The Bank of Finland compiles the country’s balance of payments data in accordance with International Monetary Fund (IMF) standards. To this end, the main details of all single payment items exceeding EUR 8,000 (USD 8,480) are to be submitted on a form either to the Finnish bank effecting the payment or directly to the Bank of Finland.
4.6.3
Expropriation and Compensation
Private property rights are well protected in Finland. There have been no cases of expropriation or nationalization since the Second World War.
4.6.4
Dispute Settlement
In 1969, Finland became a member of the International Center for the Settlement of Investment Disputes (ICSID). There is no record of any significant investment dispute in the last three decades.
4.6.5
Performance Requirements and Incentives
There are no performance requirements or commitments imposed on foreign investment in Finland. However, to conduct business in Finland, some residency requirements must be met to ensure that persons liable for the company’s acts can be brought to court if necessary. At least half of the founders (natural or legal persons) of a company to be established in Finland must reside within the EEA. Otherwise, a special permit issued by the Ministry of Trade and Industry is needed. The residence requirement can, in most cases, be fulfilled by appointing a legal representative with residence in Finland to be in charge of the business. The nationality of the founder is thus irrelevant. The extensively revised Companies Act came into force in September 1997. In line with common Western European practices, the law divides limited liability companies into public (Oyj) and private limited (Oy) companies. New financing instruments, such as capital loan and preference shares, were made available to companies. All companies registered in Finland have access to government assistance under special development programs. Foreign-owned companies are eligible for government incentives on an equal footing with Finnish-owned companies. Assistance and subsidies are granted by the Ministry of Trade and Industry (MTI) or other ministries depending on the field of business activity, the Technology Development Center (TEKES), the Parliament-managed venture capital fund, and the Finnish National Fund for Research and Development (SITRA). Companies operating in Finland have access to EU structural funds through national programs. EU funding may cover half the total costs of a program provided that the other half comes from national private and/or public sources. Finnish policy on business aid has sought to reduce sectoral aid and channel aid into intangible investments and development of the operating environment. The business support system has been simplified and supervision www.icongrouponline.com
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intensified. Support is provided in the form of tax benefits, loans, guarantees, cash grants and investment in equity, as well as in supply of expertise and employee training, and most of the support is for SMEs. Small firms can also get start-up aid to help with their first 12 months of operation. This subsidy can amount to as much as 45 percent of the project’s wage costs. Subsidies may be given for manufacturing, tourism and business services. MTI provides subsidies for investments in the form of regional investment aid, aid for small businesses or development aid for small and medium size enterprises (SMEs) and aid for improvement of the operational environment of the undertaking. SITRA’s corporate funding operations comprise venture capital, which is divided between seed funding and growth funding, fund investment and the commercialization of trading technology. TEKES is the main financing organization for applied and industrial R&D in Finland. Its funds are awarded from the state budget. The Foundation for Finnish Innovations provides risk financing for developing the innovations of private investors and small entrepreneurs. Firms established in development regions may receive subsidies for the transportation costs of products. MTI provides grants to promote internationalization. Aid for export promotion projects to be undertaken in EU/EEA territory is available only to SMEs as defined by EU/EEA state aid regulations. MTI grants energy subsidies to companies and organizations for investments promoting energy conservation and the use of domestic energy sources. To promote venture capital investments in Finnish SMEs, Finnvera grants venture capital guarantees.
4.6.6
Right to Private Ownership and Establishment
Private ownership and entrepreneurship is the norm in Finland. In most fields of business activity, participation by foreign companies or individuals is unrestricted. As the government pursues privatization of state-owned companies, both private and foreign participation is welcome except in some enterprises operating in sectors related to national security. Competitive equality is the official standard applied to private enterprises in competition with public enterprises. Private companies do not face discrimination. With the end of the Restriction Act in January 1993, Finland removed most restrictions on foreign ownership of property in Finland. Restrictions, such as requirements to obtain permission of the local government in order to purchase a vacation home in Finland were abolished January 1, 2000, bringing Finland fully in line with EU norms.
4.6.7
Intellectual Property Risks
The Finnish legal system protects property rights, including intellectual property, and Finland adheres to numerous international agreements concerning intellectual property. Finland has joined the most important copyright agreements. Patent rights are consistent with international standards. In Finland a granted patent applies for 20 years. In 1996, Finland joined the European Patent Convention (EPC) and the European Patent Organization (EPO). Finland is clearly the leader when the number of so-called high-tech patent applications (8 applications/ 1 million Finns) is compared in proportion to the population of different countries. Finland is a member of WIPO, and participates primarily through its membership in the EU. The idea of protection of intellectual property is well developed. Information on copying and copyright infringement is provided by several copyright holder interest organizations such as the Copyright Information and Anti-Piracy Center. The Business Software Alliance (BSA), a worldwide software anti-piracy organization, began operations in Finland in January 1994. Finland has been a member of the Paris Convention for the Protection of Industrial Property since 1921, the Berne Convention for the Protection of Literary and Artistic works since 1928 and the Rome International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations since 1983.
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The Finnish Copyright Act, which traditionally also grants protection to authors, performing artists, record producers, broadcasting organizations and catalog producers, has been adjusted to comply with EU directives. As part of this harmonization, the period of copyright protection was extended from 50 years to 70 years. Protection for database producers (currently a part of catalog producer rights) has been defined consistent with EU practice. National transition period procedures are defined in Parliament. The Finnish Copyright Act provides for sanctions ranging from fines to imprisonment for up to two years. Search and seizure are authorized in the case of criminal piracy, as is the forfeiture of financial gains. The Copyright Act has covered computer software since 1991.
4.6.8
Transparency of the Regulatory System
The Trade Act, as well as specific legislation referred to in it, provides more detailed information on trade practices in Finland. Section V of the Trade Act names “regulated forms of trade” in which a non-EEA resident needs permission from the Ministry of Trade and Industry. Also, according to the Trade Act, everyone launching a business in Finland is obliged to submit a notice to the Trade Register, which is maintained by the National Board of Patents and Registration. The Securities Market Act contains regulations on corporate disclosure procedures and requirements, responsibility for flagging share ownership, insider regulations and offenses, the issuing and marketing of securities, and trading. The law defines and takes into account new instruments, which have become common in financial markets, such as securities lending and repurchase agreements. Finnish legislation recognizes the same internationally common financial market contractual arrangements as legislation elsewhere in EU. Regulations concerning clearing of securities trades have been incorporated in the law since 1998. Clearing has become subject to licensing, and is supervised by the Financial Supervision Authority, which oversees the financial markets. The law defines the requirements of clearing parties and their mutual responsibilities. Finnish tax, labor, health and safety, and related laws and policies are largely neutral towards the efficient mobilization and allocation of investment. Finnish legislation does not normally influence regional distribution of investments except when specifically designed to do so, such as through regional incentive programs.
4.6.9
Capital Market Risks
Credit is allocated on market terms and is made available to foreign investors in a non-discriminatory manner. The private sector has access to a variety of credit instruments. Legal, regulatory, and accounting systems are transparent and consistent with international norms.
4.6.10
Political Violence
There have been no instances of political violence since the struggle for independence in 1918.
4.6.11
Corruption
Corruption in Finland is covered by the Criminal Code (R1 101/19.12.89) and provides for sanctions ranging from fines to imprisonment for up to four years, depending on the seriousness of the crime. Both giving and accepting a bribe is considered a criminal act under the Criminal Code. Finland does not have statutory rules concerning bribes paid to foreign officials. The Finnish Parliament has started to review amendments to the criminal code with a view to eliminating the current dual criminality provision relating to the offence of bribing of a foreign public official. www.icongrouponline.com
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Corresponding payments to domestic public officials are non-deductible on the basis of case law and practice of the tax authorities. In case law, the same rule applies to bribes paid to foreign public officials and the same rule is applied by tax authorities. Finnish authorities declare that the non-deductibility of bribes is self-evident, and that the issue has never been raised in Finland. In June, 2002 the Finnish Parliament passed a government bill implementing the European Council’s Criminal Law Convention on Corruption which, when in force, would make it possible to prosecute also Members of Parliament (MPs), as well as MP candidates, and Members of the European Parliament for unlawful conduct in office, including corruption. In October 2002, Parliament gave the final formal approval to the new legislation. Previously, corruption of MPs had not been a criminal offense in Finland, and Finland had been one of the few European countries where MP’s still had immunity. Only a few persons are convicted of bribery each year in Finland. The high moral standard of Finnish civil servants, the independence in the exercise of their duties, the monitoring systems built into public administration and the transparency of Finnish society and institutions promotes an almost corruption-free environment in Finland. Transparency International has rated Finland the least corrupt country in terms of business practices (August 2002). Finland scored almost the maximum possible score, 9.7 of 10 (=highly clean). Finland ratified the 1959 European Convention on Mutual Legal Assistance in Criminal Matters and its 1978 Additional Protocol. The U.S and Finland have an extradition treaty, signed in June 1976; it entered into force in May,1980. Finland is a party to the 1957 European Convention on Extradition. Finland is a signatory to the OECD Convention on Combating Bribery. The instruments of ratification of the convention were deposited in December 1998. The amended Penal Code entered into force on 1 January 1999. The convention entered into force on 15 February 1999.
4.6.12
Bilateral Investment Agreements
Finland has concluded bilateral investment agreements with the following 45 countries: Albania, Argentina, Belarus, Bosnia-Herzegovina, Bulgaria, Chile, China, the Czech Republic, Egypt, El Salvador, Estonia, Ecuador, Hungary, India, Indonesia, Kazakhstan, Croatia, Kuwait, Latvia, Lithuania, Macedonia, Malaysia, Morocco, Mexico, Oman, Peru, Philippines, Poland, Qatar, Republic of Korea, Republic of Lebanon, Republic of Moldova, Republic of Slovenia, Romania, Russia, Slovakia, South Africa, Sri Lanka, Tanzania, Thailand, Turkey, Ukraine, United Arab Emirates, Uzbekistan, and Vietnam. In September 1989, Finland and the U.S. signed a convention (TIAS 12101) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital. The convention entered into force December 30, 1990.
4.6.13
OPIC and Other Investment Insurance
In January 1996, OPIC and Finnvera (former Finnish Guarantee Board FGB) signed an agreement to encourage joint U.S. - Finnish private investments in Russia and the Baltic States. Under the agreement, OPIC and Finnvera will work together to enhance the development of joint ventures by promoting private investment, encouraging cooperative efforts in specific target sectors, and working jointly with appropriate authorities in the host country to promote foreign investment. OPIC is the U.S. Government agency that assists U.S. investors with project financing, political risk insurance, and privately managed equity investment funds in developing markets and emerging economies. Finnvera is a Finnish government-operated export credit guarantee agency.
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The 1996 agreement was preceded, in 1992, by a Principles of Cooperation Agreement between OPIC and the Finnish Fund for Industrial Cooperation (Finnfund). The two organizations agreed to share information concerning opportunities for private investment, exchange knowledge of techniques for the encouragement and sustenance of investment, including approaches to risk mitigation and management, and encourage cooperative enterprises among their nationals to finance private investment in developing economies. The former Soviet Union and Eastern Europe were targeted as areas of focus. Finland has been a member of the Multilateral Investment Guarantee Agency (MIGA) since 1988.
4.6.14
Labor
The Finnish labor force is highly skilled and well educated. The Act on Employment Contracts is the main regulating act applied to employment relationships. It includes the minimum conditions regarding working hours, annual leave, safety conditions etc. In addition, in most industrial sectors the employer and employee organization have concluded collective agreements on payment and working conditions. High costs have led much of Finnish industry to use labor-saving high technology whenever possible. High unemployment has made trade unions somewhat more open to discuss increased labor flexibility. Finland adheres to most ILO conventions; enforcement of worker rights is effective.
4.7 4.7.1
TRADE AND PROJECT FINANCING The Banking System
In the last few years, the Finnish banking system has undergone rapid change. The initial impetus for this process was the step-by-step deregulation of financial markets and capital movements in the 1980s as part of the overall financial integration in Europe. Then the recession in the early 1990s and a severe banking and financial sector crisis, aggravated by bad lending practices in the late 1980s, touched off a consolidation of excess banking capacity. Tighter competition ensued from Finland’s EU entry, accelerating cost cutting in the sector. Financial consolidation has been accomplished by reducing personnel, closing branch offices and introducing modern banking technology. The Finnish banking system is dominated by three major groups of deposit banks: Nordea as well as OKO Bank (the Cooperative Bank Group) and the Sampo Group. Most Finnish banks offer banking services through WAP (wireless application protocol). Customers are able to handle bank transfers, pay bills, ask for accounting info, send/receive customer mail, shop and even buy shares on the Finnish stock market using a WAP phone. The first bank in the world to offer WAP banking services was Merita Nordbanken (now Nordea). The service has been available since October 1999.
4.7.2
Foreign Exchange Control Risks
All Finnish foreign exchange controls have been abolished.
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General Financing Availability
The Finnish financial market is typical of European countries where banks and financing institutions have the dominant role, although insurance institutions play a major role in credit supply. Insurance companies, through their management of compulsory insurance schemes of the public social security system, lend a substantial part of the money back to the companies that pay the compulsory premiums. Financing is also available through the stock exchange and the government’s financing systems.
4.7.4
Financing Export Strategies
Government-owned companies or agencies provide financing and guarantees for exports. Depending on the nature of the goods exported and on the risks connected to trading partners, a portion of the export costs must be provided by the company in question. Finland prefers that, in subsidized export financing, (where Finland adheres to OECD principles), international arrangements be made with a minimum of government involvement. In addition to government activities, commercial banks provide financing, with guarantees when possible, for exports. The banks advise their customers on bank loans as well as on loans granted by other credit institutions.
4.7.5
Types of Available Export Financing and Insurance
Financing and guarantees for exports are provided for by the Sampo Group and Finnvera. Major Finnish government and other programs are detailed below.
Sampo Sampo is Finland’s first full service financial group, providing financial, investment and insurance services to its customers. The insurance company Sampo and the banking group Leonia merged at the beginning of 2001 to Sampo-Leonia and in April 2001 the name was shortened to Sampo. Sampo provides medium- and long-term financing for the export of capital goods and services from Finland to markets throughout the world. Credit structures applied by Sampo bank in export and project finance transactions are divided into buyer-credit, credit line and project finance. Credits extended by Sampo can be divided to three major groups according to the level of official support; market-term credits, OECD term-export credits and concessional credits. Sampo has in-depth expertise in structuring, arranging and financing international projects, especially in the following defined industry sectors; pulp and paper, energy and infrastructure, and telecommunications (www address: www.sampo.fi)
Finnfund: The Finnish Fund for Industrial Cooperation Similar to the U.S. government-sponsored OPIC, Finnfund promotes investments in developing countries. Finnfund acts as an agent in Finland for EU programs for the financing of investment in emerging continents. Finnfund provides equity capital as well as long-term investment loans and also participates in guarantee arrangements. In addition to financing, the corporation offers a broad range of fund-management and advisory services. Finnfund is owned by the State of Finland, Finnvera, the Confederation of Finnish Industry and Employers, and the state-owned company Solidium (Web site: www.finnfund.fi).
NIB: Nordic Investment Bank NIB is a multilateral financial institution owned by the five Nordic countries. Its head office is located in Helsinki. NIB extends loans and provides guarantees on normal banking terms for export and investment projects in line with Nordic interests. Loans and guarantees are given to investments that assure energy supply, improve infrastructure or
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support research and development. The core of NIB’s international lending consists of project investment loans, which are granted to projects with Nordic participation, usually with a government guarantee. Outside the Nordic area, NIB finances a variety of international projects, both in emerging market and the OECD countries. The bank extends credits for projects supporting economic development in the Nordic countries’ neighboring areas and for investments in parts of the world which are of mutual interest to the recipient country and the Nordic countries. (Web site: www.nib.fi).
Finnvera Finnvera is a specialized finance company promoting Finnish exports by offering export-credit guarantees and supporting domestic operations of small and medium-sized companies by offering risk financing and guarantees. Owned entirely by the Finnish State, Finnvera was formed by merging the activities of Kera Corporation and the Finnish Guarantee Board (FGB) on January 1, 1999. Finnvera’s domestic development and financing solutions are particularly geared towards small and medium- sized companies, and thus Finnvera also helps to promote the government’s regional policy objectives. Finnvera is the official Finnish export-credit agency (ECA), in addition to FIDE, providing export guarantees and insurance. Finnvera also acts as an Intermediary for financing by the EU Joint European Venture Initiative (JEV) and by the European Investment Fund. It is involved in cooperation in the OECD, EU and Berne Union. It represents Finland at meetings of the Paris Club and works in cooperation with the European Mutual Guarantee Association (EMGA). Finnvera’s export credit guarantee and insurance commitments are fully guaranteed by the state of Finland (Web site: www.finnvera.fi).
FIDE Ltd. FIDE Ltd. is a state-owned limited liability company that began operations on January 1, 1997. The Company was set up by virtue of the Act on an Interest Equalisation Company for Officially Supported Export Credits and its activities are governed by the Act on the Interest Equalisation of Officially Supported Export Credits. The Company has been accorded the Export Credit Agency (ECA) status based on international agreements. From January 1, 1999 FIDE is a subsidiary of Finnvera. FIDE Ltd. offers companies and financial institutions an internationally competitive possibility to utilize OECD-term export credits by administrating the interest equalization system and by developing the Finnish export finance system. FIDE provides companies and financial institutions with interest equalization offers and concludes interest equalization agreements with Finnish and foreign financial institutions. FIDE advises companies on the financing of exports and participates in the international co-operation of export financing, particularly in the OECD and the EU. FIDE is an internationally notified official Export Credit Agency (ECA) (Web site: www.fide.fi)
SITRA and TEKES SITRA (the Finnish National Fund for Research and Development) and TEKES (the Technology Development Center) are public financing institutions with the purpose of strengthening the role of research in economic life and promoting new products with the aim of introducing internationally competitive high-technology products and production methods. SITRA makes equity-related investments in high-tech companies during their start up and growth stages and finances management buy-outs and spin-offs from large and medium-sized companies (corporate venturing) and the incorporation of these new businesses. It is a shareholder in about 100 different technology enterprises. TEKES stimulates and coordinates research and development projects between Finnish companies, universities and research institutes and their foreign counterparts. Activities should diversify production structures, increase production and exports, and create a foundation for employment and well-being (Web site: www.sitra.fi & www.tekes.fi)
Ministry of Trade and Industry The Ministry and its regional Employment and Economic Development centers offer subsidies for investment in the form of regional investment aid, aid for small businesses or development aid for small and medium-size enterprises
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(SMEs). Special investment and start-up aid is available for small companies in the whole country, especially in rural areas and structural adjustment areas. This subsidy can be up to 45 percent of the investment in development areas and up to 15 percent elsewhere in the country. SMEs can obtain special development aid for improving their competitiveness in the long run or operations increasing internationalization. The ceiling of aid for product development projects is 35 percent which, however, can be exceeded by 5 percentage points inside the development area. (Web site: www.ktm.fi)
4.7.6
Financing Projects
Sampo Group and Finnfund provide financing for overseas projects. The participation of third-country firms in projects is possible. The Nordic Investment Bank (NIB) can help finance projects presenting adequate security and good risk classification, both within and outside the Nordic area.
4.7.7
Banks with Correspondent Banking Arrangements
All principal Finnish banks have extensive correspondent relationships with U.S. banks, maintaining relationships with banks in every state as well as with all of the larger financial center banks. Further information on correspondent relationships can be obtained from the Finnish Bankers’ Association, P.O. Box 1009, FIN-00101 Helsinki; Tel: 358-9-4056 120, Fax: 358-9-40561-291(Web site: www.pankkiyhdistys.fi).
4.8
TRAVEL RISKS
4.8.1
Local Business Practices
Finland is a modern, commercially mature country that enjoys close relations with its Nordic neighbors. Social and business protocol is similar to that in the United States and requires no special mentions of taboos. It is worth noting that relationships are important within the social and business world, as Finns prefer to deal with people they know and trust.
Workweek The average Finnish workweek is 40 hours per week, with annual leave of 25 days, 12.5 free days, and 9 paid holidays. Part-time employment averages to 17.8 hours per week.
4.8.2
Visa Requirements and Travel Information
With the exception of Nordic (Sweden, Norway, Denmark, Iceland) citizens, citizens of EU countries (except Greece), and citizens of Switzerland, San Marino and Liechtenstein, foreigners entering Finland must have a valid passport. A tourist or business visa is not required for stays of up to three months. For non-EU citizens a visa is needed for stays exceeding 90 days. Visa applications should be submitted to a Finnish diplomatic mission before entry into Finland. A foreigner needs a residence permit in order to stay in Finland for a longer period of time. However, residence permits are also needed for short stays of less than three months if the purpose of the stay is to work in Finland. Residence permits require either a valid passport or a travel document. Foreigners must have work permits if they www.icongrouponline.com
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intend to work in Finland. Exceptions are citizens of the Nordic countries or citizens of EU/EEA countries. EUcitizens outside the Nordic countries need to apply for an EEA-card from the local police for stays exceeding 90 days. An EEA-card is a combined work and residence permit. For more travel information please go to www.travel.state.gov.
4.8.3
Infrastructure for Conducting Business
Language The two official languages in Finland are Finnish and Swedish. About 92 percent of the population speak Finnish and 5.5 percent speak Swedish. Both languages are compulsory at school. English is widely spoken in Finland, especially among younger people and in major cities.
Education and Training Services Finland invests more in education than the EU countries on average. All children aged 7-15 – even disabled – attend school in Finland. Comprehensive school is a nine-year compulsory general schooling for all children aged 7-16. The municipalities pay for teachers’ salaries, books, health care, and school meals. After completing comprehensive school, students may attend high school for three years or receive vocational education. High school prepares students for university studies. Tuition at universities is minimal. Helsinki has international, English, German, Russian, French, and Jewish schools in which classes are taught partly in foreign languages and partly in Finnish. The International, English, German and Jewish schools are private and charge tuition. University level education is mainly in Finnish, with exception of English language BBA and MBA programs in certain universities and polytechnics.
Medical Services Medical facilities are widely available. The public hospital system will not honor foreign credit cards and/or U.S. insurance coverage. However, private hospitals and clinics that accept major credit cards are widely available. Travelers have found that, in some cases, a letter from their carrier describing supplemental medical insurance with specific overseas coverage has proved useful. A foreigner is usually covered by the Finnish social security after moving to Finland, with health care as one of the benefits. Services are provided within each municipality. The quality of public health care is equivalent to care given by private doctors. In addition, the employers subsidize occupational health care.
Housing Most people in Finland own their own housing. The cost to rent an apartment varies depending on the size, age, condition and location. Rents are generally quite high, especially within the Helsinki area, and most places come unfurnished.
Food Despite prices converging with other EU levels, Finland’s price structure regarding food and household needs is the lowest of the Nordic countries and only slightly above the OECD average. Finnish food is consistent to produce that is in season, which provides an array of berries, mushrooms, seafood etc. Potatoes are a main staple and accompany most evening dishes. www.icongrouponline.com
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Country Data
Population: 5.200.000 Population growth rate: 0.2% Religions: •
Lutheran (84.6%)
•
Orthodox (1.1%)
•
No denomination (13.1%)
•
Other (1.1%)
Government system: Republic Languages: •
Finnish (92.14%)
•
Swedish (5.58%)
•
Lappish (0.03%)
•
Russian (0.64%)
•
Other (1.61%)
Length of workweek: •
38.1 h (employed full time)
•
20.1 h (part time employees)
Employment rate (persons aged 15-64): 67.7% Source: Statistics Finland
4.9 4.9.1
KEY CONTACTS U.S. Embassy Trade Personnel
Commercial Service of the United States Itainen Puistotie 14 B FIN-00140 Helsinki, Finland or PSC 78, Box H APO AE 09723 Tel: (358-9) 616 250 Fax: (358-9) 6162 5130 E-mail:
[email protected]
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Economic Section Itainen Puistotie 14 B FIN-00140 Helsinki, Finland Tel: (358-9) 616 250 Fax: (358-9) 6162 5766 Defense Attache Office Itainen Puistotie 14 B FIN-00140 Helsinki, Finland Tel: (358-9) 616 250 Fax: (358-9) 6162 5808 Foreign Agricultural Service Dag Hammarskjolds Vag 31 S-115 89 Stockholm, Sweden Tel: (46-8) 783 5390 Fax: (46-8) 662 8495 E-mail:
[email protected]
4.9.2
Washington-Based U.S. Government Contacts
Ms. Leah Markowitz Desk Officer for Scandinavia U.S. Department of Commerce MAC EU Office Washington, D.C. 20230 Tel: (202) 482-4414 Fax: (202) 482-2897 E-mail:
[email protected] Mr. Scott Bleggi Area Director – Western Europe Foreign Agricultural Affairs U.S. Department of Agriculture Washington, D.C. 20250 Tel: (202) 690-3412 Fax: (202) 690-2909 E-mail:
[email protected] U.S. Department of Agriculture Foreign Agricultural Service Trade Assistance and Promotion Office Tel: (202) 720-7420 Fax: (202) 690-4374 www.fas.usda.gov E-mail:
[email protected] /
[email protected] TIC Trade Information Center in Washington Tel: 1-800-USA-TRADE www.trade.gov/td/tic E-mail:
[email protected] www.icongrouponline.com
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U.S. Department of State Commercial and Business Affairs (E/CBA) 2201 C Street NW, Room 2318 Washington, D.C. 20520 Tel: (202) 647-1625 Fax: (202) 647-3953 www.state.gov/www/about_state/business/index.html E-mail:
[email protected] Overseas Private Investment Corporation (OPIC) 1100 New York Avenue, NW Washington, D.C. 20527 Tel: (202) 336-8400 Fax: (202) 408-9859 www.opic.gov E-mail:
[email protected]
4.9.3
Chambers of Commerce
Mr. Kari Jalas Managing Director Central Chamber of Commerce P.O. Box 1000 (Aleksanterinkatu 17, WTC Helsinki) FIN-00101 Helsinki, Finland Tel: (358-9) 696 969 Fax: (358-9) 650 303 www.keskuskauppakamari.fi E-mail:
[email protected] Mr. Timo Vuori Secretary General International Chamber of Commerce (ICC) Aleksanterinkatu 17, WTC Helsinki FIN-00101 Helsinki, Finland Tel: (358-9) 669 459 Fax: (358-9) 6969 6647 www.iccfin.fi E-mail:
[email protected] Mr. Heikki J. Perala Managing Director Helsinki Chamber of Commerce Kalevankatu 12 FIN-00100 Helsinki, Finland Tel: (358-9) 228 601 Fax: (358-9) 2286 0228 www.helsinki.chamber.fi E-mail:
[email protected] Mr. Matti Sundberg President and Chairman www.icongrouponline.com
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Finnish-American Chamber of Commerce* P.O. Box 50 00441 Helsinki, Finland Tel: (358-9) 228 28 311 Fax: (358-9) 228 28 328 www.finlandtrade.com E-mail:
[email protected]
4.9.4
World Trade Center in Helsinki
Ms. Sirpa Rissa-Anttilainen Managing Director World Trade Center Helsinki P.O. Box 800 (Aleksanterinkatu 17) FIN-00100 Helsinki, Finland Tel: (358-9) 6969 2020 (358-9) 6969 2121 (trade information) Fax: (358-9) 6969 2027 www.wtc.fi E-mail:
[email protected]
4.9.5
Trade Associations
Mr. Guy Wires Managing Director Federation of Finnish Commerce and Trade Mannerheimintie 76 A FIN-00251 Helsinki, Finland Tel: (358-9) 431 560 Fax: (358-9) 4315 6302 www.kaupankl.fi E-mail:
[email protected] Central organization for 40 branch associations Ms. Airi Vaaranto Head of Secretariat Finnish Foreign Trade Agents’ Federation Elimaenkatu 29 FIN-00510 Helsinki, Finland Tel: (358-9) 8683 1650 Fax: (358-9) 8683 1651 www.agenttiliitto.fi E-mail:
[email protected] Mr. Jari Perko Managing Director Finnish Direct Marketing Association Lonnrotinkatu 11 A FIN-00120 Helsinki, Finland
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Tel: (358-9) 2287 7400 Fax: (358-9) 6121 039 www.ssml-fdma.fi E-mail:
[email protected] Mr. Leif Fagernäs Managing Director Confederation of Finnish Industry and Employers P.O. Box 30 (Etelaranta 10) FIN-00130 Helsinki, Finland Tel: (358-9) 686 81 Fax: (358-9) 6868 2316 www.tt.fi E-mail:
[email protected] Mr. Martti Maenpaa Director General Technology Industries of Finland P.O. Box 10 (Etelaranta 10) FIN-00130 Helsinki, Finland Tel: (358-9) 192 31 Fax: (358-9) 624 462 www.teknologiateollisuus.fi E-mail:
[email protected] Mr. Timo Poranen President Finnish Forest Industries’ Federation P.O. Box 336 (Snellmaninkatu 13) FIN-00170 Helsinki, Finland Tel: (358-9) 132 61 Fax: (358-9) 1324 445 www.forestindustries.fi E-mail:
[email protected] Mr. Tapani Kaskeala President Finpro P.O. Box 358 (Porkkalankatu 1) FIN-00181 Helsinki, Finland Tel: (358-204) 6951 Fax: (358-204) 695 200 www.finpro.fi E-mail:
[email protected] Ms. Sirkka Aura Chief Executive Invest in Finland Bureau Aleksanterinkatu 17, WTC Helsinki FIN-00101 Helsinki, Finland Tel: (358-9) 6969 125 Fax: (358-9) 6969 2530 www.investinfinland.fi www.icongrouponline.com
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E-mail:
[email protected]
4.9.6
Finnish Government Agencies
Dr. Jaana Husu-Kallio Director, Department of Food and Health Ministry of Agriculture and Forestry Hallituskatu 3 A, P.O. Box 30 FIN-00023 Government, Finland Tel: (358-9) 160 3385 Fax: (358-9) 160 3338 www.mmm.fi E-mail:
[email protected] Mr. Hannu Paju Director Employment and Economic Development Center P.O. Box 15 (Maistraatinportti 2) FIN-00240 Helsinki, Finland Tel: (358-9) 2534 2111 Fax: (358-9) 2534 2000 www.te-keskus.fi E-mail:
[email protected] Dr. Osmo Maki-Petays Head of Meat Hygiene Unit National Food Agency P.O. Box 28 FIN-00581 Helsinki, Finland Tel: (358-9) 3931 5516 Fax: (358-9) 3931 590 www.elintarvikevirasto.fi/english/ E-mail:
[email protected] Mr. Veikko Koskela Senior Inspector The National Board of Customs P.O. Box 512 (Erottajankatu 2) FIN-00120 Helsinki, Finland Tel: (358-9) 614 3804 (358) 20 391 100 (Customs Information) Fax: (358-9) 20 492 2852 (358) 20 492 1812 (Customs Information) www.tulli.fi E-mail:
[email protected] Ms. Heli Jeskanen-Sundstrom Director General Statistics Finland Tyopajankatu 13 FIN-00022 Statistics Finland www.icongrouponline.com
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Tel: (358-9) 173 41 Fax: (358-9) 1734 2750 www.stat.fi E-mail:
[email protected] Mr. Reijo Aarnio Data Protection Ombudsman Office of Data Protection Ombudsman Ministry of Justice P.O. Box 315 (Albertinkatu 25 A, 3rd fl.) FIN-00180 Helsinki, Finland Tel: (358-9) 259 8771 Fax: (358-9) 259 87735 www.tietosuoja.fi E-mail:
[email protected] Mr. Pekka Järvinen Manager, Information Services Finnish Standardization Association (SFS) Maistraatinportti 2 A, 3rd fl. FIN-00240 Helsinki, Finland Tel: (358-9) 1499 3366 Fax: (358-9) 1464 925 www.sfs.fi E-mail:
[email protected] or
[email protected] Mr. Tuomo Ilomaki Managing Director Finnish Electrotechnical Standard Association (SESKO) P.O. Box 134 (Sarkiniementie 3) FIN-00210 Helsinki, Finland Tel: (358-9) 696 391 Fax: (358-9) 677 059 www.sesko.fi E-mail:
[email protected] or
[email protected] Mr. Martti Enajarvi Director General National Board of Patents and Registration of Finland Arkadiankatu 6 A FIN-00100 Helsinki, Finland Tel: (358-9) 6939 500 Fax: (358-9) 6939 5328 www.prh.fi/engl.html E-mail:
[email protected] Ms. Marita Wilska Director General National Consumer Administration P.O. Box 5 (Haapaniemenkatu 4 A, 7th fl.) FIN-00530 Helsinki, Finland Tel: (358-9) 772 61 Fax: (358-9) 7726 7586 www.icongrouponline.com
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www.kuluttajavirasto.fi E-mail:
[email protected]
4.9.7
Market Research Firms
Mr. Ari Heino Managing Director Research International Finland Oy Lapinlahdenkatu 3 A 14 FIN-00180 Helsinki, Finland Tel: (358-9) 6859 930 Fax: (358-9) 6859 9333 www.research-int.fi Mr. Risto Seppälä Managing Director A.C. Nielsen Finland Oy Tietajantie 14 FIN-02130 Espoo, Finland Tel: (358-9) 430 030 Fax: (358-9) 463 628 www.acnielsen.fi E-mail:
[email protected] Mr. Kyosti Pietola Director of Economic Research (Professor) MTT Economic Research Luutnantintie 13 FIN-00410 Helsinki, Finland Tel: (358-9) 5608 6300 Fax: (358-9) 563 1164 www.mtt.fi/mttl/ E-mail:
[email protected] Mr. Andrew Cannon Managing Director Marketing Radar LTD Lauttasaarentie 28-30 FIN-00200 Helsinki, Finland Tel: (358-9) 615 4511 Fax: (358-9) 6154 5200 www.radar.fi E-mail:
[email protected]
4.9.8
Commercial Banks
Mr. Markku Pohjola Managing Director Nordea Bank Finland
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Aleksanterinkatu 36 B FIN-00020 Nordea, Finland Tel: (358-9) 1651 Fax: (358-9) 165 54500 www.nordea.com or www.nordea.fi Mr. Mikael Silvennoinen President Osuuspankkien Keskuspankki Oyj (OKO Bank) Teollisuuskatu 1 B FIN-00510 Helsinki, Finland Tel: (358-9) 4041 Fax: (358-9) 4043 703 www.okobank.com Mr. Mika Ihamuotila EVP, Head of Distribution & Banking Sampo Pankki Oyj. (Sampo Bank Plc.) Unioninkatu 22 FIN-00075 SAMPO, Finland Tel: (358-10) 5151s Fax: (358-10) 516 0051 www.sampo.com Mr. Kari Laukkanen Managing Director Citibank International Plc. Finland Branch Aleksanterinkatu 48 A FIN-00100 Helsinki, Finland Tel: (358-9) 348 87200 Fax: (358-9) 3488 7388 www.citibank.com
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5 5.1
DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS DISCLAIMERS & SAFE HARBOR
Summary Disclaimer. This publication ("Report") does not constitute legal, valuation, tax, or financial consulting advice. Nor is it a statement on the performance, management capability or future potential (good or bad) of the company(ies), industry(ies), product(s), region(s), city(ies) or country(ies) discussed. It is offered as an information service to clients, associates, and academicians. Those interested in specific guidance for legal, strategic, and/or financial or accounting matters should seek competent professional assistance from their own advisors. Information was furnished to Icon Group International, Inc. ("Icon Group"), and its subsidiaries, by its internal researchers and/or extracted from public filings, or sources available within the public domain, including other information providers (e.g. EDGAR filings, national organizations and international organizations). Icon Group does not promise or warrant that we will obtain information from any particular independent source. Published regularly by Icon Group, this and similar reports provide analysis on cities, countries, industries, and/or foreign and domestic companies which may or may not be publicly traded. Icon Group reports are used by various companies and persons including consulting firms, investment officers, pension fund managers, registered representatives, and other financial service professionals. Any commentary, observations or discussion by Icon Group about a country, city, region, industry or company does not constitute a recommendation to buy or sell company shares or make investment decisions. 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Icon Group recommends that the reader follow the advice of Nancy M. Smith, Director of SEC's Office of Investor Education and Assistance, who has been quoted to say, "Never, ever, make an investment based solely on what you read in an online newsletter or Internet bulletin board, especially if the investment involves a small, thinly-traded company that isn't well known … Assume that the information about these companies is not trustworthy unless you can prove otherwise through your own independent research." Similar recommendations apply to decisions relating to industry studies, product category studies, corporate strategies discussions and country evaluations. In the case of Icon Group reports, many factors can affect the actual outcome of the period discussed, including exchange rate volatility, changes in accounting standards, the lack of oversight or comparability in accounting standards, changes in economic conditions, changes in competition, changes in the global economy, changes in source data quality, changes in reported data quality, changes in methodology and similar factors. Information Accuracy. Although the statements in this report are derived from or based upon various information sources and/or econometric models that Icon Group believes to be reliable, we do not guarantee their accuracy, reliability, quality, and any such information, or resulting analyses, may be incomplete, rounded, inaccurate or condensed. All estimates included in this report are subject to change without notice. This report is for informational purposes only and is not intended as a recommendation to invest in a city, country, industry or product area, or an offer or solicitation with respect to the purchase or sale of a security, stock, or financial instrument. This report does not take into account the investment
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objectives, financial situation or particular needs of any particular person or legal entity. With respect to any specific company, city, country, region, or industry that might be discussed in this report, investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the information in this report. Investing in either U.S. or non-U.S. securities or markets entails inherent risks. In addition, exchange rate movements may have an effect on the reliability of the estimates provided in this report. Icon Group is not a registered Investment Adviser or a Broker/Dealer.
5.2
ICON GROUP INTERNATIONAL, INC. USER AGREEMENT PROVISIONS
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END
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