(PDF)Financial Analysis Management and Enterprise - Assignment
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Added on 2021-02-17
(PDF)Financial Analysis Management and Enterprise - Assignment
Added on 2021-02-17
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FINANCIALANALYSISMANAGEMENT ANDENTERPRISE
Table of ContentsINTRODUCTION...........................................................................................................................1TASK1 ............................................................................................................................................1Comparison of financial performance and position of Apple and Samsung on the basis ofanalysing tools.............................................................................................................................1Swot analysis of Apple and Samsung..........................................................................................4TASK 2............................................................................................................................................7CSR analysis of Samsung and Apple over last years..................................................................7CONCLUSION..............................................................................................................................10REFRENCES.................................................................................................................................11APPENDIX....................................................................................................................................12
INTRODUCTIONFinancial statement analysis is the process of analysing and evaluating the financialstatement and reports of an organisation. It is necessary to analyse the financial records so thatcompany can become able to check about the financial condition and position. In addition, it alsobeneficial for both to the external parties like shareholders, stakeholders and to the internalmanagement of company (Dunning and Dunning, 2014). There are too many methods which areused by the companies to analyse the financial statements. For example vertical method,horizontal method, ratio analysis etc. In this project report two companies are selected which areApple and Samsung. The project report contains analysis of both the company to check financialstrengths and weakness. Main purpose of this report is identify that which company is betterbetween Apple and Samsung. In addition, report includes CSR analysis of both the companies.TASK1 Comparison of financial performance and position of Apple and Samsung on the basis ofanalysing tools.Overview of Samsung company: Samsung company was founded in 1938 by Lee Byung chul.Its headquarter is in Seoul, South Korea. The company is running its business in all around theworld. They are offering various kind of products and services in the market. Their products arelike electronic equipments, home appliances, telecommunication products etc. In addition theirservices are like advertising, medical and construction services etc. Company is leading themarket by providing latest products and services on the demand of customers as well as they aregetting sustainable advantage in this tough competition era in all around the world. Thiscompany has significant impact on various country's economic environment, specially on itsorigin country's economy (David, 2011). Though company is facing the cut throat competition indifferent countries but they are sustain in that. Financial analysis of company:On the basis of financial analysis between (2014-2017), company is growing withsignificant criteria. They are increasing in their profits and revenue on year by year. In 2014company was getting the profit percentage of 38.07% which increased by 1% in 2015 and itbecome 38.46% in 2015. There after this criteria was increasing on year wise. In 2016 itincreased by 2% in comparison to last year profit and it became 40.42%. In the year of 2017,
company increased their profit with a huge margin at 6% increment of previous year's profit andit was 46.03% which was a huge profit criteria. In addition, company's revenues are alsoincreased in period of (2014-17). In this time period company got good revenue. On the basis ofprevious year's financial statements, it has been analysed that company's assets are increasing incompare to last year. Company's assets were increased by 23.63% in the time period of 2014-17.So on this analysis company's revenues, profits and assets were increased significantly which is ahuge achievement for Samsung (Vogel, 2014). Ratio analysis of company:Liquidity/Financial Health2014201520162017Current Ratio2.212.472.592.19Quick Ratio1.731.982.121.71FinancialLeverage1.421.41.411.46Debt/Equity-0.010.010.01The ratios which are shown in above table describes the financial health of the company.On the basis of this ratio analysis, company's ratios of profitability are increasing continuously.In 2014, the current ratio of company was of 2.21 which increased by 11.7% in the next year andit became 2.47. As well as it increased in 2016 and become 2.59 but herein, in 2017 it decreasedby 15.44%. So company's current ratio is increasing respectively except the year 2017. Generally quick ratio is considered ideal when it is of 1:1 but here company is gettingratio of 1.73 in 2014, which increased by 14.45% and converted at 1.98% in next year. It alsoincreased in 2016 and became 2.12 but same as current ratio, it decreased in 2017. It decreasedby 19.33%.Financial leverage states that how many amount company have to pay their liabilities.Samsung's financial leverage ratio was 1.42 in 2014 which decreased by a low margin andbecame 1.4. In addition, it increased by 0.71% in next year and it became 1.41. It increased bybig criteria in 2017 and it became 1.46 which was highest in the time period of 2014-2017.
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