Samsung and Apple Ratio Analysis
Added on 2021-01-02
19 Pages4389 Words324 Views
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Ratio Analysis..........................................................................................................................1Common size analysis..................................................................................................................6Determining financial strength and weakness for Samsung and apple........................................8CSR section of Samsung and Apple .........................................................................................10CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13APPENDIX....................................................................................................................................14
INTRODUCTIONFinancial analysis is very important for every business entity as it helps in measuringperformance of its business. The present report will give brief discussion about Samsung andApple on basis of ratio analysis and common size analysis. Further, this will reflect CSR policiesof both organization in efficient manner.1. Ratio AnalysisProfitability ratioGross Profit RatioInterpretation: The above graph is measuring profitability over 4 years as 2014 to 2017 ofSamsung and Apple. These both organization having similar segment and operating in somewhatsame aspect. It has been observed that gross profit is raising from year of Apple Inc. against itsnet sales. On the contrary, its gross margin ratio decreased in 2016 and 2017 so this must becapable for purpose of controlling its expenditure on basis of operations in efficient aspect as it isimpacting organization's profitability in distinct manner.In the similar aspect, Samsung Ltd's gross profit ratio is increasing in each year as it was0.37 in 2014 and reached to 0.46 in year 2017 which shows that organization is highly profitableon basis of gross profit margin. In year 2017, it has absorbed capability for attaining profit as itwill deliver high margin. It could be easily articulated from above graph that Samsung Ltd had1
directly attained development in its industry on basis of appropriate control along with cost ofexpenditure as well. Henceforth, it will give provide fruitful outcome to business entity in termsof profit.Net profit marginInterpretation: It is another measure of profitability in terms of net profit over past 4 yearsof both Samsung Ltd and Apple Inc. It is been observed that Apple Inc is having high net profitcomparatively to Samsung which shows that huge operating expenses are incurred throughSamsung. In the similar aspect, there are various fluctuation in net profit ratio of Samsung Ltdwhere it is at high position in year 2017 and lowest in 2015. It could be justified that, Apple isworking on its net profit where Samsung Ltd will accomplish control on its expenditure andproduced net profit in year 2017.On basis of this profitability analysis, it could be stated that Samsung Ltd has highfluctuations in both gross and net profit margin but because of high operating cost, Samsung wasnot able to attain satisfactory returns in terms of net profit. However, Apple Inc. had given thebest control on cost of expenditure which in turn transforms into net profit margin in efficientaspect.Liquidity RatioCurrent ratio2
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