Question:

Multinationality is a measure of the extent to which companies operate internationally. The Multinationality Index or MNI is a measure of that. The MNI is determined by calculating the average of these three ratios:

• foreign sales to total sales
• foreign assets to total assets
• foreign employees to total employees

This discussion offers you practice with calculating MNI for Honda and Sony. Because the number of employees is rarely disclosed, for this practice, you will calculate the MNI for Honda and Sony based on the assets and sales ratios only.

• UsingCalcbench financial data platform

1) Compute the sales ratio, the asset ratio, and the MNI for both Honda and Sony.

Honda Data

Honda Motor Co Ltd (HMC) From: 20-F Filed on: 2019-06-19 Yen (millions) Japan United States Other Total Sales revenue * 2,394,584 Y 7,480,382 * 6,013,651 * 15,888,617 Non-current assets other than financial instruments and deferred tax assets * 2,695,603 Y 3,956,228 * 1,685,874 * 8,337,705 Yen (millions) Japan North America Europe Asia Other Total Reconciling Consolidated Sales revenue: External customers * 2,394,584 Y 8,526,733 Y 652,335 * 3,557,338 Y 757,627 * 15,888,617 Y 0 Y 15,888,617 Inter-geographic areas 2,453,729 497,231 275,089 714,901 6,826 3,947,776 (3,947,776) 0 Total 4,848,313 9,023,964 927,424 4,272,239 764,453 19,836,393 (3,947,776) 15, 888,617 Operating profit (loss) 10 Y 299,750 * (6,620) Y 404,220 22,616 Y 719,976 * 6,394 726,370 Assets * 4,546,640 * 11,418,194 * 694,606 * 3,024,357 Y 621,259 20,305,056 Y 114,066 * 20,419,122 Non-current assets other than financial instruments and deferred tax assets * 2,695,603 Y 4,740,675 Y 65,500 691,211 Y 144, 716 Y 8,337,705 Y OY 8,337,705Exported from Calcbench **For tracing and more features, down! Sony Corp (SNE) http://www.sec.gov/Archives/edgar/data/. From: 20-F Filed on: 2019-06-18 Yen in millions Fiscal year ended March 31 2017 2018 sales and operating revenue: Japan 2,382,790 2,525,619 United States 1, 573,758 1,635,705 Europe 1,534,653 1,841,457 China 557,895 674,718 Asia-Pacific 856,712 1,024,179 Other Areas 477,302 542,304 Total 7,603,250 6,543,962 Sony Corp (SNE) From: 20-F Filed on: 2019-06-16 Yen in millions March 31 2018 2019 property, plant and equipment, net: Japan 563,593 590,694 United States 113,581 Europe 23,302 22,522 China 11,232 11,694 Asia-Pacific 36,738 34,273 Other Areas 6,526 4,169 Total 739,470 777,053