Business Description

Daikin Industries Ltd. is engaged in the sale and manufacturing of air conditioning equipment. Akira Yamada founded the company on October 25, 1924. It is located in Osaka Japan. It operates in the following segments: Air Conditioning and Refrigeration Business and Chemicals and Other.

Air Conditioning and Refrigeration Business provide purifiers for commercial use, residential air conditioners,  and large-sized chillers. Chemicals provide fluoropolymers, fine chemical products, fluorocarbons, chemical engineering machinery, and chemical engineering machinery. Other segments include oil hydraulic, defense, and electronics companies.

Key Financials

Revenue (US$ Mn)

 

• Daikin Industries Ltd.’s annual revenue for 2021 was US$ 22,624 Mn, a -2.23% decrease from 2020
• The annual revenue generated by Daikin Industries Ltd. in 2020 was US$ 23,141 Mn
• At a 6.34% increase from, Daikin Industries Ltd.’s annual revenue of US$ 22,513 Mn was indexed in 2019
• Daikin Industries Ltd. generated total revenue of US$ 21,170 Mn in 2018

 

Operating Income (US$ Mn)

• Daikin Industries Ltd.’s operating income for 2021 was US$ 2,165 Mn, a -10.13% decrease from 2020
• The operating income generated by Daikin Industries Ltd. in 2020 was US$ 2,409 Mn
• At a 6.89% increase from, Daikin Industries Ltd.’s operating income of US$ 2,507 Mn was indexed in 2019
• Daikin Industries Ltd. generated an operating income of US$ 2,345 Mn in 2018

 

Net Income (US$ Mn)

• Daikin Industries Ltd.’s net income for 2021 was US$ 5 Mn, a -7.69% decrease from 2020
• The net income generated by Daikin Industries Ltd. in 2020 was US$ 5 Mn
• At a 0% decrease from, Daikin Industries Ltd.’s net income of US$ 6 Mn was indexed in 2019
• Daikin Industries Ltd. generated a net income of US$ 6 Mn in 2018

 

Operating Margin %

• 10% was the operating margin generated by Daikin Industries Ltd. in 2021
• Daikin Industries Ltd.’s operating margin for 2020 was 10%, a -6.31% decrease from 2019
• From 2018’s operating margins, Daikin Industries Ltd. registered a 0.91% increase in 2019, amounting to 11%
• An operating margin of 11% was generated in 2018 by Daikin Industries Ltd.

 

Gross Margin %

• Daikin Industries Ltd.’s gross margin for 2021 was 35%, a -0.29% decrease from 2020
• The gross margin generated by Daikin Industries Ltd. in 2020 was 35%
• At a 0.29% increase from, Daikin Industries Ltd.’s gross margin of 35% was indexed in 2019
• Daikin Industries Ltd. generated a gross margin of 35% in 2018

 

SWOT Analysis

Strengths

Wide geographic presence

Daikin’s geographically diverse operations allow it to operate in Asia, Oceania, and EMEA. Daikin’s revenue generation is well-diversified across all of its operating regions. The US was the largest geographic market for the company in FY2018 accounting for 24.1%. Japan (23.7%), China (16.7%), Asia (1.5%), Oceania (15.2%), Europe (14.5%) and other countries (5.8%) followed. The company’s diverse geographic presence in the United States helps reduce its risk and protects it against significant weak performances in any region.