Financial Analysis Managament and Enterprise
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Added on 2021-01-02
Financial Analysis Managament and Enterprise
Added on 2021-01-02
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FINANCIAL ANALYSISMANAGEMENT ANDENTERPRISE
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1: Comparison of financial Performance and Financial position of given companies........1TASK 1(B).......................................................................................................................................5SWOT Analysis of Samsung:.................................................................................................5SWOT analysis of Apple:.......................................................................................................6TASK 2............................................................................................................................................72.1: Critical analysis of CSR sections over the last couple of years......................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10APPENDIX:...................................................................................................................................11Financial statement of Samsung:..........................................................................................11Financial statement of Apple Inc..........................................................................................14
INTRODUCTIONFinancial statement analysis is the process related to the analysing and reviewing thefinancial statements and reports of the business for making an estimate and analysis about thecompany financial health about the present year and comparing it with the past scenario andmaking it according to the future trends of the market. The main objective behind the preparationof financial statements is to find out the issues and problems in the financials of the company andtroubleshoot them (Vernon, and Aharoni, 2014). Financial statement analysis is preformed usingvarious methods such as analysing the ratios of the company, comparing the statements by usingvertical and horizontal analysis etc. This project report is done on two listed companies namely Samsung and Apple. Theanalysis will be performed using above mentioned methods and proper strength and weaknessanalysis is also performed here. Finally, the conclusion is made which company is morepowerful by analysing the Financial grounds.TASK 11.1: Comparison of financial Performance and Financial position of given companiesIntroduction to Samsung company: The company was founded in the year 1969,Samsung electronics has emerged and grown as a global information and a leader in technology.The company manages a total of 220 subsidiaries all around the globe and it is generating a totalturnover of more than 200 Trillion KRW (Ramdani, Chevers, and A. Williams, 2013). Thecompany is continuously engaged and is making serious efforts for achieving regular growth andshaping the future by utilising and generating innovative ideas and technologies. The company iscurrently providing the customers home and commercial appliances such as Televisions,Monitor, Printers, Refrigerators, Air-conditioners and also the most significant appliances oftelecommunication such as Tablet PCs and smartphones. The company provides these servicesand products for generating convenience, value creation and encouraging smart lifestyles for itsconsumers all over the globe.In 2014, the company embraced the challenges of the expansion even after the increase ineconomic and political problems that emerged in the complex economic and global environment.Financial analysis of the company: 1
The company is continuously growing and gaining profits in the market all over the globeat the increasing rate. As per the Financial statements of the previous five years it has beenanalysed how the company is progressing on yearly basis. From 2014 to 2017 it has beenobserved that net profits and the revenues have been increased every year. For the year 2014 thecompany has an addition in the profits by 8%. But in the next year it increased by approximately1% and became 38.46%, then for the coming years it has significantly increased every year as ithas been observed from the financial of the company. In the year 2016 it Increased by almost 2%and became 40.42%. In the year 2017, it largely increased by 6% and became 46.03%. This hasalso been observed that the company's cost of revenue has significantly decreased in the yearswhich has also assisted in increasing the profitability of the company (Li, 2012). According tothe financial statements of the company it has been seen that the total assets of the company havealso increased over the years. The total assets of the company in the Financial year 2017 were3,01,75,21,00,000 as compared to the 2,30,42,29,58,000 in the year 2014.Ratio analysis of Samsung Electronics:As per the Table that is provided for the company and after the calculation of theFinancial of the company. The various ratios are being calculated by the company for analysingthe financial performance of the company. For this purpose, the company has been calculated theratios such as profitability ratios (Gross profit ratio, operating profit margin etc.), solvency ratios(Debt-Equity ratio, Financial Leverage etc.) and for the purpose of checking the liquidityposition of the company the ratios like Current ratios and quick ratio are being calculated.According the ratios analysis, it has been interpreted that Gross profit ratio of thecompany have increased every year for the company (Wu, Chen, and Olson, 2014.). It hasincreased from 37.85 in the year 2014 to 46.00% in the year 2017 which means that company'sprofitability has been significantly increased in the years. Similarly, the operating profit marginof the company is also improved by 12.1 in 2014 to 22.4 in year 2017.The Earning per share of the company in the year 2014 was 3061 which decreased in thenext year and came to 2526 in 2015 but after that is has significantly increased and has become5997 in the year 2017 which is the highest till now. The current ratio of the company has beenincreasing continuously from the year 2014 but it deceased in the year 2017 in comparison toyear 2016 and became 2.19 in the year. The Debt-equity ratio of the company is consistent inevery year which is 0.1. 2
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