[SOLVED] Financial Statement Analysis

This assignment requires a thorough analysis of a company's financial statements, including current and non-current liabilities, stockholders' equity, and total assets. The data provided includes percentages and dollar amounts for each category, totaling 231,839, 290,479, 321,686, and 375,319 respectively. The summary will include the key findings from this analysis, highlighting any notable trends or changes in the company's financial position.

Financial Analysis Management
And
Entrepreneurship

TABLE OF CONTENTS
INTRODUCTION........................................................................................................................................................................................................3
Comparing and contrasting financial performance of Apple & Samsung over the period of four years.................................................................3
Presenting CSR activities of Apple and Samsung with respect to last couple of years.........................................................................................24
CONCLUSION..........................................................................................................................................................................................................27
REFERENCES...........................................................................................................................................................................................................28
APPENDIX................................................................................................................................................................................................................30
1. Ratio analysis of Apple......................................................................................................................................................................................30
2. Ratio analysis of Samsung.................................................................................................................................................................................32
3. Horizontal analysis of Apple..............................................................................................................................................................................34
4. Vertical analysis of Apple..................................................................................................................................................................................39

INTRODUCTION
Financial management implies for the activities undertaken by the organization for making optimum use of monetary resources. In the
business unit, manager develops competent financial strategic as well as policy framework and thereby make contribution in the achievement of
organizational goals. Further, financial analysis refers to evaluation of final accounts which in turn present the extent to which company is
performing well. Financial analysis report is highly significant which in turn provides stakeholders with valuable framework for decision
making. The present report is based on Apple and Samsung which falls into the category of leading units within electronics market. This report
will provide deeper insight about financial performance and position of Apple as well as Samsung pertaining to the period of four years. It
depicts how ratio analysis tool can be used for analyzing financial performance of the company. Along with this, it also reflects CSR initiatives
undertaken by such companies in previous years.
Comparing and contrasting financial performance of Apple & Samsung over the period of four years
Ratio analysis is served as a quantitative tool which furnishes information about company’s performance as well as position from several
perspectives. It includes profitability, liquidity, solvency and efficiency which in turn assists company as well as its stakeholders in developing
competent framework (Setiawan and Amboningtyas, 2018).
Ratio analysis of Apple and Samsung: A comparative analysis
Profitability ratio analysis
GP ratio
Gross profit / net sales * 100 (Mohanram, Saiy and Vyas, 2018)

Years Apple Samsung
2014 38.59% 37.79%
2015 40.06% 38.46%
2016 39.08% 40.42%
2017 38.47% 46.03%
2014 2015 2016 2017
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Apple
Samsung

Interpretation: The above depicted table shows that GP margin of Samsung increased from 37.79% to 46.03% respectively. On the other
side, fluctuated trend has identified in the gross margin of Apple. Moreover, in 2015, GP ratio was 40.06% significantly, whereas at the end of
2017, it reached on 38.47%. Graphical presentation clearly reflects that Samsung has made effectual control on direct expenses in against to
Apple. Higher direct expenses are one of the main reasons behind decreased GP margin of Apple. Thus, Apple should lay focus on undertaking
budgetary control tools and techniques. This in turn helps company in decreasing the level of expenses and enhancing profit margin.
NP ratio
Net profit / net sales * 100
Years Apple Samsung
2014 21.61% 11.19%
2015 22.85% 9.32%
2016 21.19% 11.10%
2017 21.09% 17.26%

2014 2015 2016 2017
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Apple
Samsung
Interpretation: Outcome of ratio analysis exhibits that NP margin of Samsung inclined significantly from 11.19% to 17.26% respectively
at the end of 2017. However, no significant growth was found in the NP ratio of Apple. Moreover, during the period of four years NP margin of
company lie within the range 21.09% to 22.55% respectively. Nevertheless, higher NP margin of Apple presents that it has exerted effectual
control on indirect expenditure. Hence, for maximizing net profit margin Samsung needs to revise financial strategies and policy framework.
Through this, Samsung would become able to control expenses and thereby enhances profit level.
Liquidity ratio analysis
Current assets / current liabilities
Current ratio

Years Apple Samsung
2014 1.08 2.21
2015 1.11 2.47
2016 1.35 2.59
2017 1.28 2.19
2014 2015 2016 2017
0
0.5
1
1.5
2
2.5
3
1.08 1.11
1.35 1.28
2.21
2.47 2.59
2.19
Apple
Samsung

Interpretation: Graphical presentation clearly entails that current ratio of Apple increased over the years from 1.08 to 1.28. On the
contrary to this, in 2017, current ratio of Samsung decreased from 2.21 to 2.19. Referring this, it can be stated that during the span of four years
Samsung was highly able in relation to meeting its financial obligation over the rival firm. Moreover, as per the ideal ratio of 2:1, business unit
must have two assets in against to one obligation. According to this, Samsung has maintained enough assets and highly able to meet monetary
obligations effectually. Further, for making improvement in liquidity aspect Apple should undertake working capital management theories and
practices.
Quick ratio: Current assets - (stock + prepaid expenses) / current liabilities
Years Apple Samsung
2014 1.05 1.78
2015 1.08 2
2016 1.33 2.26
2017 1.23 1.73

2014 2015 2016 2017
0
0.5
1
1.5
2
2.5
1.05 1.08
1.33 1.23
1.78
2
2.26
1.73
Apple
Samsung
Interpretation: By doing ratio analysis, it has assessed that both the companies maintained higher quick asset. In accordance with
standards, companies should follow quick ratio of 0.5:1. On the basis of this, company must have 1 quick asset over 1 current liability which can
easily be converted into cash. In the period of 2017, quick ratio of Apple and Samsung was 1.23 & 1.73 respectively. Hence, liquidity position of
both the companies is good from the perspective of meeting current monetary obligations.
Solvency ratio analysis
Long-term debt / shareholders’ equity
Years Apple Samsung

2014 0.26 0.01
2015 0.45 0.01
2016 0.59 0.01
2017 0.73 0.01
2014 2015 2016 2017
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.26
0.45
0.59
0.73
0.01 0.01 0.01 0.01
Apple
Samsung
Interpretation: From assessment, constant performance found in the debt-equity ratio of Samsung such as 0.01 respectively. On other
side, increasing trend identified in the solvency position of Apple from 0.26 to 0.73. By taking into account such aspect, it can be mentioned that
capital structure of Apple is good as compared to the competitor firm. Moreover, for developing optimal capital structure business unit requires

to issue 2 equity share in against to 1 debt. Such capital structure assists company in reducing cost and facilitates profit enhancement. Thus, for
the purpose of effectual capital structure development, Samsung should keep in mind ideal ratio of .5:1 while raising funds.
Efficiency ratio analysis
Inventory turnover ratio
Cost of goods sold / average stock
Years Apple Samsung
2014 53.18 7.41
2015 62.82 6.84
2016 58.64 6.47
2017 40.37 5.97

2014 2015 2016 2017
0
10
20
30
40
50
60
70
53.18
62.82
58.64
40.37
7.41 6.84 6.47 5.97
Apple
Samsung
Interpretation: Through ratio analysis, it has identified that in 2016, stock turnover ratio of Apple and Samsung was 58.64 & 5.97 times.
However, in 2017, it reached on 40.37 & 5.97 times respectively 2017 (Annual report of Samsung (2015), n.d). Column graph depicts that
Samsung sold and replaced its inventory too fast. Moreover, products of Samsung are affordable for everyone in comparison to Apple which in
one of the main reasons behind lower turnover ratio. Thus, for improving such aspect, Apple should employ stock management tools and
techniques. This helps company in enhancing stock turnover ratio and thereby profitability as well.
Total assets turnover ratio
Sales revenue / average total assets
Years Apple Samsung

2014 0.79 .89
2015 0.89 .85
2016 0.70 .80
2017 0.66 .85
2014 2015 2016 2017
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0.79
0.89
0.7 0.66
0.89 0.85 0.8 0.85
Apple
Samsung

Interpretation: Line chart depicted above presents that total assets turnover ratio of Apple decreased from .79 to .66 significantly.
However, on the other side, such ratio of Samsung was within the range of .80 to .89 times from 2014-2017 (Annual report of Apple (2017), n.d).
Considering such trend, it can be mentioned that Samsung generated high sales revenue by using its total assets over the rival firm. Thus, in
terms of efficiency ratios, performance of Samsung was good in comparison to Apple. Hence, such business unit needs to develop competent
strategic and policy framework for making improvement in the existing performance level.
Fixed assets turnover ratio
Sales revenue / average fixed assets
Years Apple Samsung
2014 1.12 1.79
2015 1.28 1.72
2016 1.04 1.70
2017 .99 1.74

2014 2015 2016 2017
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Apple
Samsung
Interpretation: In financial year 2017, fixed assets turnover ratio of Apple deteriorated from 1.12 to .99 times. On the contrary to this, in
accounting year 2016 and 2017, fixed assets turnover ratio of Samsung was 1.70 & 1.74 times significantly 2017 (Annual report of Samsung
(2017), n.d). Outcome reflects that Samsung generated high revenue using fixed assets. Thus, Apple needs to make focus on the maintenance
of fixed assets which in turn helps in generating enough revenue.
Investment ratios
Earnings per share
(Net income - preferred dividend) / Number of shares outstanding
Years Apple Samsung

2014 6.45 3.06
2015 9.22 2.52
2016 8.31 3.16
2017 9.21 5.9
2014 2015 2016 2017
0
1
2
3
4
5
6
7
8
9
10
6.45
9.22
8.31
9.21
3.06 2.52
3.16
5.9
Apple
Samsung
Interpretation: Ratio analysis result entails that EPS associated with the shares of Apple are higher over the rival firm. Moreover, EPS of
Apple was 6.45 in 2014, whereas it was 9.21 during the accounting period of 2017 (Annual report of Apple (2015), n.d). On the critical note,
Samsung’s EPS increased from 3.06 to 5.9 at the end of financial year 2019. Hence, due to the innovative practices and attainment of higher net

profit EPS of Apple is higher. Thus, Samsung should focus on increasing its net profitability aspect which in turn further helps in improving
EPS.
Summary: Referring the outcome of financial ratios it can be said that Apple performed well over the last four years from the
perspective of profitability, efficiency and investment. Hence, shareholders will get higher and suitable return by making investing in Apple.
Horizontal analysis
Apple: Income statement
2014
% change in 2015
from 2014 2015
% change in 2016
from 2015 2016
% change in 2017
from 2016 2017
Revenue 182795 27.86% 233715 -7.73% 215639 6.30% 229234
Cost of revenue 112258 24.79% 140089 -6.22% 131376 7.36% 141048
Gross profit 70537 32.73% 93626 -10.00% 84263 4.66% 88186
Total operating expense 18034 24.19% 22396 8.23% 24239 10.74% 26842
Operating income 52503 35.67% 71230 -15.73% 60024 2.20% 61344
Net income from
continuing operations 39510 35.14% 53394 -14.43% 45687 5.83% 48351

Interpretation: As per tabular analysis, sales revenue of Apple declined from 27.86% to 6.30% significantly at the financial year ended
on 2017. Accordingly, cost of revenue declined and gross, net & operating margin as well. Hence, Apple should lay emphasis on undertaking
promotional tools which in turn influences customers and thereby profitability.
Apple: Balance sheet
2014
%change
in 2015
from
2014 2015
%change
in 2016
from
2015 2016
%change
in 2017
from
2016 2017
Total current assets 68531 30.42% 89378 19.57% 106869 20.38% 128645
Total non-current assets 163308 23.14% 201101 6.82% 214817 14.83% 246674
Total assets 231839 25.29% 290479 10.74% 321686 16.67% 375319
Liabilities and stockholders
Total current liabilities 63448 27.05% 80610 -1.99% 79006 27.60% 100814
Total non-current liabilities 56844 59.23% 90514 26.42% 114431 22.74% 140458
Total liabilities 120292 42.26% 171124 13.04% 193437 24.73% 241272
Total stockholders' equity 111547 7.00% 119355 7.45% 128249 4.52% 134047
Total liabilities and stockholders' equity 231839 25.29% 290479 10.74% 321686 16.67% 375319

Interpretation: Financial analysis presents fluctuated trend in current, non-current and total assets level. As compared to 2016, in the
year of 2017, assets level of Apple increased which in turn recognized as good indicator. However, in 2017, over assets, current and non-current
liabilities inclined significantly. On the critical note, level of shareholder’s equity declined from 7.45% to 4.52% respectively. Thus, Apple is
advised to maintained assets level in line with the liabilities that company is having.
Samsung: Income statement
Particular
s 2017
% change
in 2017
from 2016 2016
% change in
2016 from
2015 2015
% change in
2015 from
2014 2014
Sales
Revenue 211811887 21.70% 174047940 -1.87% 177365404 -2.69% 182273479
Gross
profit 97504234 38.61% 70345428 3.12% 68214765 -0.97% 68882866
Operating
profit 47428316 88.12% 25211080 7.98% 23347867 5.55% 22120631
Profit 37297884 90.35% 19594260 16.30% 16848002 -18.53% 20679181
Samsung: Balance Sheet
Assets 2017
% change in
2017 from
2016 2016
% change
in 2016
from 2015 2015
% change in 2015
from 2014 2014
Total current
assets 129949219 6.57% 121939593 10.52% 110328582 8.40% 101782044

Total assets 266783176 18.02% 226044667 5.59% 214071883 5.10% 203679800
Total
liabilities 77148352 29.28% 59673438 6.95% 55793968 1.26% 55100124
Total equity 189634824 13.98% 166371229 5.11% 158277915 6.53% 148579676
Total
liabilities and
Stockholders
' equity 266783176 18.02% 226044667 5.59% 214071883 5.10% 203679800
Interpretation: The above depicted horizontal analysis clearly exhibits that financial performance of Samsung in terms of sales,
profitability and assets increased over the years significantly. Thus, it can be mentioned that strategic and policy framework of business units
becomes sound as time passes.
Vertical analysis
Apple: Profitability statement
2014 % OF 2014 2015
% OF
2015 2016
% OF
2016 2017
% OF
2017
Revenue 182795 100.00% 233715 100.00% 215639 100.00% 229234 100.00%

Cost of revenue 112258 61.41% 140089 59.94% 131376 60.92% 141048 61.53%
Gross profit 70537 38.59% 93626 40.06% 84263 39.08% 88186 38.47%
Total operating expenditure 18034 9.87% 22396 9.58% 24239 11.24% 26842 11.71%
Operating income 52503 28.72% 71230 30.48% 60024 27.84% 61344 26.76%
Net income from continuing
operations 39510 21.61% 53394 22.85% 45687 21.19% 48351 21.09%
Apple: Statement of financial position
2014 % of 2014 2015 % of 2015 2016 % of 2016 2017 % of 2017
Assets
Total current assets 68531 29.56% 89378 30.77% 106869 33.22% 128645 34.28%
Total non-current assets 163308 70.44% 201101 69.23% 214817 66.78% 246674 65.72%
Total assets 231839 100.00% 290479 100.00% 321686 100.00% 375319 100.00%
Liabilities and stockholders’ equity
Total current liabilities 63448 27.37% 80610 27.75% 79006 24.56% 100814 27%
Total non-current liabilities 56844 24.52% 90514 31.16% 114431 35.57% 140458 37%
Total liabilities 120292 51.89% 171124 58.91% 193437 60.13% 241272 64%

Total stockholders' equity 111547 48.11% 119355 41.09% 128249 39.87% 134047 36%
Total liabilities and stakeholders equity 231839 100.00% 290479 100.00% 321686 100.00% 375319 100%
Income statement: Samsung
Particulars 2017
% of
Sales 2016 % of Sales 2015
% of
Sales 2014 % of Sales
Sales Revenue 211811887 100.00%
17404794
0 100.00% 177365404 100.00% 182273479 100.00%
Gross profit 97504234 46.03% 70345428 40.42% 68214765 38.46% 68882866 37.79%
Operating
profit 47428316 22.39% 25211080 14.49% 23347867 13.16% 22120631 12.14%
Profit 37297884 17.61% 19594260 11.26% 16848002 9.50% 20679181 11.35%
Balance sheet: Samsung

Balance sheet
Assets 2017
% of Total
assets /
liabilities 2016
% of Total
assets /
liabilities 2015
of
Total
assets /
liabiliti
es 2014
of
Total
assets /
liabiliti
es
Total
current
assets 129949219 48.71%
12193959
3 53.94%
11032
8582
51.54
%
10178
2044
49.97
%
Total
assets 266783176 100.00%
22604466
7 100.00%
21407
1883
100.00
%
20367
9800
100.00
%
Liabilities
and
Stockholde
rs' Equity
Total
current
liabilities 0.00% 47165446 20.87%
44641
482
20.85
%
45977
117
22.57
%
Total 77148352 28.92% 59673438 26.40% 55793 26.06 55100 27.05

liabilities 968 % 124 %
Total
equity 189634824 71.08%
16637122
9 73.60%
15827
7915
73.94
%
14857
9676
72.95
%
Total
liabilities
and
Stockholde
rs' equity 266783176 100.00%
22604466
7 100.00%
21407
1883
100.00
%
20367
9800
100.00
%
Presenting CSR activities of Apple and Samsung with respect to last couple of years
In the recent times, every company lay high level of emphasis on undertaking initiatives for the welfare of its stakeholders. This in turn
enhances company’s brand image and help in creating distinct image in the mind of society. Now, as per the rules business units require to
prepare as well as present sustainability or CSR report at the end of an accounting year. Likewise, both Apple and Samsung do as well as present
CSR report with the motive to provide stakeholders with suitable information. Hence, findings on the basis of Apple’s & Samsung’s report
pertaining to CSR are enumerated below:
Samsung:
By doing assessment, it has identified that programs and initiatives of Samsung are highly associated with sustainability Management
Council. Hence, such council includes 14 departments which in turn deal with several areas like society and environment. Business unit follows
all the principles which are associated with CSR aspects:

 It complies with all the laws and ethical standards
 Focuses on maintaining clean organizational structure
 Give high level of priority to stakeholders such as customers, employees and shareholders
 Do business by keeping in mind health & safety and environmental caring
 Socially responsible towards corporate citizens
CSR initiatives
 Samsung organizes several training campaigns and programs for persuading employees regarding operations as well as other aspects.
 It has designed specific management system for indulging the culture of safety within an organization.
 Further, company also created a system to respond aspects pertaining to micro-dust and climate change.
 It started support programs with regards to suppliers and thereby ensures high sustainability.
 Along with this, Samsung also provides employees and other people with equal employment opportunity.
 Company offers differentiated electronic products to the customers and thereby delivers best value to them (CSR report of Samsung,
2017).
Apple:
This business unit makes focus on both the aspects innovation as well as sustainable environment. Sustainability report (2017) of Apple
presents that it mainly focuses on three areas such as climate change, resource change and safer material. Now, Apple is focusing on reducing
negative impact of its operation on climate through the means of renewable energy sources. It emphasizes on driving efficiency in products,
facilities and supply chain. Further, company is developing competent strategic framework with the motive to conserve precious resources.
Along with this, Apple uses safer materials for fulfilling purpose of ensuring better health & safety aspects.

 In the reduction of environment emission, contribution of Apple is significant to a great extent. Moreover, it reduced environment
emission by 54% from offices, data and retail centers as well as fleet vehicle.
 Apple saved energy about 5% by taking into account energy efficiency measures in areas of facilities which cover more than 9 million
square feet.
 By using innovative practices Apple is making focus on attaining target related to 100% renewable energy. Several contracts were made
by Apple for the generation of renewable energy from new markets includes India, Turkey, Brazil etc.
 For procuring renewable energy sources company is applying specific principles like displacement, materiality and accountability. In
accordance with such aspects, Apple is highly associated with certification programs such as Green-e-energy etc.
 With an objective to reduce the level of carbon emission Apple is making long-term investments in new projects pertaining to facilities,
manufacturing and cleaner grids.
 Apple has taken initiatives for reducing the level of manufacturing emission by prioritizing the aspects of aluminum. This aspect reflects
that business organization has reengineered manufacturing process with the motive to make contribution in environment sustainability.
 In addition to this, energy consumed by Apple’s products also decreased significantly by 68% in comparison to previous generations.
This in turn recognized as a possible indicator which shows that company is measuring its carbon footprints (CSR report of Apple, 2017).
 It recycles products by using advanced technologies and thereby makes positive contribution in economy. Further, with regards to ensure
human rights, environmental protection as well as responsible business practices Apple focuses on higher standards pertaining to the
aspect of supplier.
Summary: The above depicted evaluation shows that both the companies are taking significant measures for making contribution in in the
welfare of society \, employees and other stakeholders. Both the companies undertook several campaigns and plans which in turn helps in
ensuring the aspect of environment sustainability, employee growth etc.

CONCLUSION
By summing up this report, it has been concluded that ratio analysis is the most effectual tool which in turn helps in summarizing final
accounts in the best possible way. It can be seen in the report that Apple’s performance was good during the span of four years from 2014-217.
Moreover, financial performance of Apple was good from the perspective of profitability, solvency and investment. Hence, Apple needs to
undertake competent working capital management strategies which help it in strengthening liquidity position. It can be summarized from the
report that both Samsung and Apple take significant initiatives for the well-being of society. Both the companies undertook several strategies
and technologies for reducing the level of environmental emission.

REFERENCES
Books and Journals
Mohanram, P., Saiy, S. and Vyas, D., 2018. Fundamental analysis of banks: the use of financial statement information to screen winners from
losers. Review of Accounting Studies. 23(1). pp.200-233.
Setiawan, H. and Amboningtyas, D., 2018. FINANCIAL RATIO ANALYSIS FOR PREDICTING FINANCIAL DISTRESS CONDITIONS
(Study on Telecommunication Companies Listed In Indonesia Stock Exchange Period 2010-2016). Journal of Management. 4(4).
Online
Annual report of Apple (2015). n.d. [Online]. Available through: <https://financials.morningstar.com/income-statement/is.html?
t=AAPL&region=usa >.
Annual report of Apple (2017). n.d. [Online]. Available through:
<http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_AAPL_2017.pdf >.
Annual report of Samsung (2015). n.d. [Online]. Available through: <http://quicktake.morningstar.com/stocknet/secdocuments.aspx?
symbol=005930&country=kor >.
Annual report of Samsung (2017). n.d. [Online]. Available through:
<http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_UEIC_2017.pdf >.

CSR report of Apple. 2017. [Online]. Available through:
<https://www.apple.com/environment/pdf/Apple_Environmental_Responsibility_Report_2018.pdf>.
CSR report of Samsung. 2017. [Online]. Available through: <file:///C:/Users/user/Downloads/2017_CSR_report_EN_01.pdf>.
Sustainability report of Samsung. 2017. [Online]. Available through:
<https://www.samsung.com/us/smg/content/dam/samsung/us/aboutsamsung/2017/Samsung_Electronics_Sustainability_Report-2017.pdf>.

APPENDIX
1. Ratio analysis of Apple
Particulars Formula
Profitability ratio
analysis
2014 2015 2016 2017
Gross Profit 70537 93626 84263 88186
Net profit 39510 53394 45687 48351
Sales revenue 182,795 233,715 215,639 229,234
GP ratio Gross profit / sales * 100
70537/182,795*
100
93626/233,715*
100
84263/215,639*
100
88186/229,234*
100
38.59% 40.06% 39.08% 38.47%
NP ratio Net profit / sales * 100
39510/182,795*
100
53394/233,715*
100
45687/215,639*
100
48351/229,234*
100
21.61% 22.85% 21.19% 21.09%
Liquidity ratio analysis
2014 2015 2016 2017

Current assets 68531 89378 106869 128645
Current liabilities 63448 80610 79006 100814
Inventory 2111 2349 2132 4855
Prepaid expenses 0 0 0 0
Quick assets 66420 87029 104737 123790
Current ratio Current assets / current liabilities 1.08 1.11 1.35 1.28
Quick ratio
Current assets - (stock + prepaid
expenses) 1.05 1.08 1.33 1.23
Solvency ratio analysis 2014 2015 2016 2017
Long-term debt 28987 53463 75427 97207
Shareholder's equity 111547 119355 128249 134047
Debt-equity ratio
Long-term debt / shareholders’
equity 0.26 0.45 0.59 0.73
Efficiency ratio analysis

2014 2015 2016 2017
Cost of goods sold 112258 140089 131376 141048
Average Inventory 2111 2230 2241 3494
Turnover or sales revenue 182,795 233,715 215,639 229,234
Average total assets
231839 261159 306082.5 348502.5
Average fixed assets
163308 182204.5 207959 230745.5
Stock turnover ratio (In
times) 53.18 62.82 58.64 40.37
Total assets turnover
ratio .79 .89 .70 .66
Fixed assets turnover
ratio 1.12 1.28 1.04 .99
Investment ratios
2014 2015 2016 2017

2. Ratio analysis of Samsung
Particulars Formula 2014 2015 2016 2017
Profitability ratio analysis
Gross Profit 77927187 77171364 81589030 110284715
Net profit 23082499 18694628 22415655 41344569
Sales revenue 206,205,987 200,653,482 201,866,745 239,575,376
GP ratio Gross profit / sales * 100 37.79% 38.46% 40.42% 46.03%
NP ratio Net profit / sales * 100 11.19% 9.32% 11.10% 17.26%
Liquidity ratio analysis
2014 2015 2016 2017
Current assets 115146026 124814725 141429704 146982464
Current liabilities 52013913 50502909 54704095 67175114
Inventory 17317504 18811794 18353503 24983355
Prepaid expenses 5336063 4876635 4942021 5588892
Quick assets 92492459 101126296 118134180 116410217
Current ratio Current assets / current liabilities 2.21 2.47 2.59 2.19
Quick ratio
Current assets - (stock + prepaid
expenses) 1.78 2.00 2.16 1.73
Solvency ratio analysis 2014 2015 2016 2017
Long-term debt 1379871 1424046 1237653 2710269
Shareholder's equity 162181725 172876767 186424328 207213416

Debt-equity ratio Long-term debt / shareholders’ equity 0.01 0.01 0.01 0.01
Efficiency ratio analysis
2014 2015 2016 2017
Cost of goods sold 128278800 123482118 120277715 129290661
Average Inventory 17317504 18064649 18582648.5 21668429
Turnover or sales revenue 206,205,987 200,653,482 201,866,745 239,575,376
Average total assets 230422958 236301240 252176923 281963207
Average fixed assets 115276932 116320864 119054708 137757123
Stock turnover ratio (In
times) 7.41 6.84 6.47 5.97
Total assets turnover ratio 0.89 0.85 0.80 0.85
Fixed assets turnover ratio 1.79 1.72 1.70 1.74
3. Horizontal analysis of Apple
Income statement
2014
% change in
2015 2015
% change in
2016 2016
% change in
2017 2017
Revenue
18279
5 27.86%
23371
5 -7.73%
21563
9 6.30% 229234
Cost of revenue 11225 24.79% 14008 -6.22% 13137 7.36% 141048

8 9 6
Gross profit 70537 32.73% 93626 -10.00% 84263 4.66% 88186
Operating
expenses
Research and
development.. 6041 33.54% 8067 24.52% 10045 15.29% 11581
Sales, General
and adm. 11993 19.48% 14329 -0.94% 14194 7.52% 15261
Total operating
expense.. 18034 24.19% 22396 8.23% 24239 10.74% 26842
Operating income 52503 35.67% 71230 -15.73% 60024 2.20% 61344
Interest Expense 384 90.89% 733 98.64% 1456 59.55% 2323
Other income
(expense) 1364 47.95% 2018 38.95% 2804 80.74% 5068
Income before
taxes 53483 35.59% 72515 -15.37% 61372 4.43% 64089
Provision for 13973 36.84% 19121 -17.97% 15685 0.34% 15738

income t...
Net income from
contin... 39510 35.14% 53394 -14.43% 45687 5.83% 48351
Balance sheet
2014
%change
in 2015 2015
%change
in 2016 2016
%change
in 2017 2017
Assets
Current assets
Cash and cash equivale... 13844 52.56% 21120 -3.01% 20484 -0.95% 20289
Short-term investments 11233 82.33% 20481 127.87% 46671 15.47% 53892
Total cash 25077 65.89% 41601 61.43% 67155 10.46% 74181
Receivables 17460 -3.50% 16849 -6.50% 15754 13.46% 17874
Inventories 2111 11.27% 2349 -9.24% 2132 127.72% 4855
Deferred income taxes 4318 28.44% 5546 -100.00%
Other current assets 19565 17.73% 23033 -5.23% 21828 45.39% 31735
Total current assets 68531 30.42% 89378 19.57% 106869 20.38% 128645
Non-current assets

Property, plant and eq
Gross property, plant ... 39015 26.25% 49257 24.34% 61245 22.58% 75076
Accumulated Depreciati... -18391 45.65% -26786 27.81% -34235 20.62% -41293
Net property, plant an... 20624 8.96% 22471 20.20% 27010 25.08% 33783
Equity and other inves... 130162 26.05% 164065 3.88% 170430 14.25% 194714
Goodwill 4616 10.83% 5116 5.82% 5414 5.60% 5717
Intangible assets 4142 -6.01% 3893 -17.65% 3206 -28.32% 2298
Other long-term assets 3764 47.61% 5556 57.61% 8757 16.04% 10162
Total non-current asse... 163308 23.14% 201101 6.82% 214817 14.83% 246674
Total assets 231839 25.29% 290479 10.74% 321686 16.67% 375319
Liabilities and stockh...
Liabilities
Current liabilities
Short-term debt 6308 74.37% 10999 5.51% 11605 3134.11% 375319
Accounts payable 30196 17.53% 35490 5.08% 37294 31.52% 49049
Taxes payable 1209 -100.00%
Accrued liabilities 6480 288.60% 25181 -12.53% 22027 16.87% 25744
Deferred revenues 8491 5.29% 8940 -9.62% 8080 -6.58% 7548

Other current liabilit... 10764 -100.00%
Total current liabilit... 63448 27.05% 80610 -1.99% 79006 27.60% 100814
Non-current liabilitie...
Long-term debt 28987 84.44% 53463 41.08% 75427 28.88% 97207
Deferred taxes liabili... 20259 18.77% 24062 8.13% 26019 21.08% 31504
Deferred revenues 3031 19.56% 3624 -19.15% 2930 -3.21% 2836
Other long-term liabil... 4567 105.06% 9365 7.37% 10055 -11.38% 8911
Total non-current liab... 56844 59.23% 90514 26.42% 114431 22.74% 140458
Total liabilities 120292 42.26% 171124 13.04% 193437 24.73% 241272
Stockholders' equity
Common stock 23313 17.60% 27416 13.99% 31251 14.77% 35867
Retained earnings 87152 5.89% 92284 4.42% 96364 2.04% 98330
Accumulated other comp.. 1082 -131.89% -345 -283.77% 634 -123.66% -150
Total stockholders' eq... 111547 7.00% 119355 7.45% 128249 4.52% 134047
Total liabilities and ... 231839 25.29% 290479 10.74% 321686 16.67% 375319

4. Vertical analysis of Apple
Income statement
2014 % OF 2014 2015 % OF 2015 2016 % OF 2016 2017 % OF 2017
Revenue 182795 100.00% 233715 100.00% 215639 100.00% 229234 100.00%
Cost of revenue 112258 61.41% 140089 59.94% 131376 60.92% 141048 61.53%
Gross profit 70537 38.59% 93626 40.06% 84263 39.08% 88186 38.47%
Operating expenses 0.00%
Research and
development.. 6041 3.30% 8067 3.45% 10045 4.66% 11581 5.05%
Sales, General and
adm. 11993 6.56% 14329 6.13% 14194 6.58% 15261 6.66%
Total operating
expense.. 18034 9.87% 22396 9.58% 24239 11.24% 26842 11.71%
Operating income 52503 28.72% 71230 30.48% 60024 27.84% 61344 26.76%
Interest Expense 384 0.21% 733 0.31% 1456 0.68% 2323 1.01%
Other income 1364 0.75% 2018 0.86% 2804 1.30% 5068 2.21%

(expense)
Income before
taxes 53483 29.26% 72515 31.03% 61372 28.46% 64089 27.96%
Provision for
income t... 13973 7.64% 19121 8.18% 15685 7.27% 15738 6.87%
Net income from
contin... 39510 21.61% 53394 22.85% 45687 21.19% 48351 21.09%
Statement of financial position
2014 % of 2014 2015 % of 2015 2016 % of 2016 2017 % of 2017
Assets
Current assets
Cash and cash equivale... 13844 5.97% 21120 7.27% 20484 6.37% 20289 5.41%
Short-term investments 11233 4.85% 20481 7.05% 46671 14.51% 53892 14.36%
Total cash 25077 10.82% 41601 14.32% 67155 20.88% 74181 19.76%
Receivables 17460 7.53% 16849 5.80% 15754 4.90% 17874 4.76%
Inventories 2111 0.91% 2349 0.81% 2132 0.66% 4855 1.29%

Deferred income taxes 4318 1.86% 5546 1.91% 0.00% 0.00%
Other current assets 19565 8.44% 23033 7.93% 21828 6.79% 31735 8.46%
Total current assets 68531 29.56% 89378 30.77% 106869 33.22% 128645 34.28%
Non-current assets 0.00% 0.00% 0.00% 0.00%
Property, plant and eq 0.00% 0.00% 0.00% 0.00%
Gross property, plant ... 39015 16.83% 49257 16.96% 61245 19.04% 75076 20.00%
Accumulated Depreciati... -18391 -7.93% -26786 -9.22% -34235 -10.64% -41293 -11.00%
Net property, plant an... 20624 8.90% 22471 7.74% 27010 8.40% 33783 9.00%
Equity and other inves... 130162 56.14% 164065 56.48% 170430 52.98% 194714 51.88%
Goodwill 4616 1.99% 5116 1.76% 5414 1.68% 5717 1.52%
Intangible assets 4142 1.79% 3893 1.34% 3206 1.00% 2298 0.61%
Other long-term assets 3764 1.62% 5556 1.91% 8757 2.72% 10162 2.71%
Total non-current asse... 163308 70.44% 201101 69.23% 214817 66.78% 246674 65.72%
Total assets 231839 100.00% 290479 100.00% 321686 100.00% 375319 100.00%
Liabilities and stockh...
Liabilities
Current liabilities
Short-term debt 6308 2.72% 10999 3.79% 11605 3.61% 18473 5%

Accounts payable 30196 13.02% 35490 12.22% 37294 11.59% 49049 13%
Taxes payable 1209 0.52% 0.00% 0.00% 0%
Accrued liabilities 6480 2.80% 25181 8.67% 22027 6.85% 25744 7%
Deferred revenues 8491 3.66% 8940 3.08% 8080 2.51% 7548 2%
Other current liabilit... 10764 4.64% 0.00% 0.00% 0%
Total current liabilit... 63448 27.37% 80610 27.75% 79006 24.56% 100814 27%
Non-current liabilitie... 0.00% 0.00% 0.00% 0%
Long-term debt 28987 12.50% 53463 18.41% 75427 23.45% 97207 26%
Deferred taxes liabili... 20259 8.74% 24062 8.28% 26019 8.09% 31504 8%
Deferred revenues 3031 1.31% 3624 1.25% 2930 0.91% 2836 1%
Other long-term liabil... 4567 1.97% 9365 3.22% 10055 3.13% 8911 2%
Total non-current liab... 56844 24.52% 90514 31.16% 114431 35.57% 140458 37%
Total liabilities 120292 51.89% 171124 58.91% 193437 60.13% 241272 64%
Stockholders' equity 0.00% 0.00% 0.00% 0%
Common stock 23313 10.06% 27416 9.44% 31251 9.71% 35867 10%
Retained earnings 87152 37.59% 92284 31.77% 96364 29.96% 98330 26%
Accumulated other comp.. 1082 0.47% -345 -0.12% 634 0.20% -150 0%
Total stockholders' eq... 111547 48.11% 119355 41.09% 128249 39.87% 134047 36%