financial analysis of samsung electronics co

7/24/2019 Financial Analysis of Samsung Electronics Co

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Reported By:

Daniel Alex Espiritu

Jaymil Laurice Santos

Submitted to:

Sir Amir Auditor

Financial Analysis of SamsungElectronics Co., Ltd. (2013 201!


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"ac#ground of t$e Com%any

c$ief su&sidiary of Sout$ 'oreas giantSamsung )rou% and t$e largest electronics%roducer in Asia

o%erates four main di*isions including+igital edia, Semiconductors, -nformation Communications, and /ome A%%liance


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"ac#ground of t$e Com%any (cont.!

$e com%any sells tele*isions, *ideo, andaudio eui%ment com%uters and related%roducts %$ones, cellular %$ones, and fa

mac$ines $ome a%%liancessemiconductors net4or#5related %roductsfactory automation %roducts fi&er o%tics

%roducts closed circuit security %roductsmotors and com%ressors and solar energysystems.


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6esults of Financial Analysis

/ori7ontal and 8ertical Analysis of Financial Statement/ori7ontal and 8ertical Analysis of -ncome

Statement
http://var/www/apps/conversion/tmp/scratch_2/Samsung%20Electronics%20Financial%20Statement%202013-2014.xlsxhttp://var/www/apps/conversion/tmp/scratch_2/Samsung%20Electronics%20Financial%20Statement%202013-2014.xlsxhttp://var/www/apps/conversion/tmp/scratch_2/Samsung%20Electronics%20Income%20Statement%202013-2014.xlsxhttp://var/www/apps/conversion/tmp/scratch_2/Samsung%20Electronics%20Income%20Statement%202013-2014.xlsxhttp://var/www/apps/conversion/tmp/scratch_2/Samsung%20Electronics%20Income%20Statement%202013-2014.xlsxhttp://var/www/apps/conversion/tmp/scratch_2/Samsung%20Electronics%20Income%20Statement%202013-2014.xlsxhttp://var/www/apps/conversion/tmp/scratch_2/Samsung%20Electronics%20Financial%20Statement%202013-2014.xlsxhttp://var/www/apps/conversion/tmp/scratch_2/Samsung%20Electronics%20Financial%20Statement%202013-2014.xlsx


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Financial 6atios of 201

Liuidity

Current 6atio10,992,:;22.21

Acti*ity6ecei*a&le urno*er

;,=;;,9? 1.9

Fied Asset


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Financial 6atios of 201 (cont.!

@rofita&ility

%erating -ncome argin

;,==0,?1? .1"

Bet @rofit argin

9,;;,;? .1#

)ross @rofit argin1:,9?9,:9: .#


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@rofita&ility (cont.!

6eturn on otal Asset

9,;;,;? .$

6eturn on Euity

9,;;,;? .%


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Financial 6atios of 2013

Liuidity

Current 6atio

103,930,:1.

Acti*ity6ecei*a&le urno*er

:,9,:0: 1."9

Fied Asset


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@rofita&ility

%erating -ncome argin

;,93,1=1 .1&

Bet @rofit argin

9,9:,39; .1#

)ross @rofit argin20,10?,;3 < :,9,:0: > .#1


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Financial6atios of 2013 (cont.!

@rofita&ility (cont.!

6eturn on otal Asset

9,9:,39; .$

6eturn on Euity

9,9:,39; < 1?0,019,010 > .#


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Conclusion

Com%any im%ro*ed a&ility to %ay lia&ilitiesat s$ort terms (increased current ratio! andfied costs (increased o%erating income

margin!Collection of recei*a&les are more efficient

(increased recei*a&les turno*er ratio!

Fied assets are more efficient (increasedfied asset ratio!


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Conclusion (cont.!

aintained %rofita&ility (same net %rofitmargin!, and asset efficiency (same returnon total assets!

Bo drastic fluctuation of %rices (sta&le gross%rofit margin!

Ac$ie*es $ig$er %rofit using s$are$olders

money (increased return on euity!


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6ecommendation

Com%any s$ould try to lo4er costs andmaimi7e %rofit as t$eres signs of slig$t

inefficiency (suffers *olatility of currency and$ig$er e%enses! for o*erall im%ro*ementt$us, maintaining %rices lo4 enoug$ to get

sufficient amounts of %rofita&ility andreduced 4astage

financial analysis of samsung electronics co

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