Financial Analysis Management

This report analyzes the financial performance of Samsung Ltd and Apple Inc., comparing their profitability, liquidity, efficiency, and solvency ratios. It also examines their CSR initiatives and rankings. The report concludes that both companies are performing well financially, but Samsung Ltd has a stronger profitability position and higher EPS.

Financial Analysis
Management & Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Comparative analysis of companies financial position and performance..........................1
2. Assessing CSR sections of organisation and outlining findings......................................33
CONCLUSION..............................................................................................................................34
REFERENCES..............................................................................................................................35

INTRODUCTION
Financial information plays crucial role in the business as management takes better
decisions by effectively analysing it and stakeholders are also benefited. Present report deals
with Samsung Ltd and Apple Inc. which are engaged in technology sector and producing profits.
Financial ratios are computed to show performance of both firms in the market. Along with it,
vertical and horizontal analysis are also outlined for last four years. CSR section for two
companies in last two years is highlighted. Hence, it can be said that overall financial
performance is evaluated for organisations.
1. Comparative analysis of companies financial position and performance
Vertical Analysis of Samsung Ltd – Refer to Appendix 1
Horizontal Analysis of Samsung Ltd Refer to Appendix
Vertical Analysis of Apple Inc. – Refer to Appendix 2
Horizontal Analysis of Apple Inc. – Refer to Appendix
1

2

Illustration 1: Gross profit ratio
Illustration 2: Net profit ratio
Interpretation:
The profitability aspect of the business is required to be assessed so as to carry out
whether firm is performing well or not. In order to arrive at profitable situation, profitability
ratios are computed for both Samsung Ltd and Apple Inc. for last four years. It can be analysed
that gross profit margin of Apple Inc. in 2014 was 0.38 maximised to 0.40 in next year. This
3

shows that firm had been successful in controlling costs incurred on manufacturing its products.
It is evident from the fact that operational expenses have been reduced which has provided
increment in gross profit in effectual manner. While, in 2016, figure was decreased to 0.39 and
further more to 0.38 in recent period. It is required that company should try to minimise
expenditures for attaining better profits in the future course of action.
On the other hand, Samsung Ltd had 0.37 in 2014. The trend increased as it reached to
0.38 and 0.40 in next consecutive years. Financial year 2017 was more fruitful because 0.46 of
ratio was attained which is incredible for the company as it sales are maximised and efforts are
provided in order to reduce all expenses incurred on meeting operational requirements. On the
other hand, net profit margin is also calculated which is further extension of above computed
ratio. Net profit after deducting all of operational and non-operational expenses is arrived which
is divided by sales revenue. It can be said that net profit should be increased by minimising
expenses, thereby, beneficial for organisation. Net profit ratio of Apple Inc. was 0.21 in earlier
year i.e. 2014 and elevated to 0.22 in 2015. Moreover, it again decreased to 0.21 in 2016 and
2017 years. On the other side, Samsung Ltd had 0.11 in 2014 which further minimised to 0.09
showing that costs are not handled in effective manner so as to maximise net income. On
contrary to this, 0.17 is attained in 2017 highlighting that firm has reduced costs helping to earn
more profits.
Profitability ratios provides clarity regarding financial health of company in terms of
earnings. Apple Inc. and Samsung Ltd are both giants in Hi-Tech sector and customer's base is
also large. It becomes necessary to perform well so that good quantum of profits can be
achieved. It can be assessed that gross margin of Apple Inc. was not good in comparison to
Samsung Ltd. While, in net profit ratio, Samsung Ltd has low performance with respect to other
firm. Hence, overall performance of Apple Inc. is good as net margin is high. However, its' rival
is performing well as net margin is increased in 2017. Thus, profitability aspect of firm should be
enhanced in a better way by which it may be able to conquer over market share and provide
higher level of satisfaction to customers to make them loyal towards brand.
4

5

Illustration 3: Current ratio
Illustration 4: Acid-Test ratio
Interpretation:
6

Liquidity ratios are another crucial way to analyse liquidity position of company in the
best possible manner. Basically, current assets should be more in quantum than current liabilities
so that firm can easily pay off without any difficulties. Current assets are those which can be
easily converted in the form of cash and as such, it is required that firm may initiate proper
control over it so that current obligations can be paid within stipulated time. Current ratio of
Apple Inc. in 2014 was 1.08 which maximised to 1.11 in 2015. It reached to 1.35 in 2016 and
again declined to 1.27 in next year. This clearly shows that firm will face difficulties in making
out payments of short-term basis. On the other side, Samsung Ltd had 2.23 current ratio in 2014
increased to 2.47 in 2015. It further maximised to 2.58 in 2016. However, decreased to 2.18 in
2017. It can be said that firm has good ratio as it is more than ideal ratio of 2 : 1.
Acid-Test ratio is also calculated which means whether from liquid assets, current
liabilities can be met or not. Inventory and prepaid expense is deducted from it to get extreme
current assets or liquid assets. Samsung Ltd had acid-test ratio of 1.81 in 2014, increased to 2.03
in 2015 and further to 2.18 in 2016. However, it decreased in 2017 to 1.75. The ideal acid-test
ratio is considered to be 1 : 1 means that for current asset, current liability is available. Samsung
Ltd has better ratio which is more than standard one. Furthermore, ratio of Apple Inc. was 1.04
in 2014, maximised to 1.07 and 1.32 in consecutive years. It reduced to 1.22 in 2017 which
shows that company has also good liquidity position as it will be able to pay liabilities from
liquid assets in the best possible manner. Current ratio of Apple Inc. is low and is required that
current assets should be converted into cash on quick basis so as to pay off obligations.
7

8

Illustration 5: Inventory Turnover ratio
Illustration 6: Asset Turnover ratio
Interpretation:
Efficiency ratios are computed for last four years for Samsung Ltd and Apple Inc. It
provides clarity whether firm is generating sales by effectively using resources in a better way.
9

This is essentially required so that firm's performance was better or not in attaining efficiency for
maximising sales. Inventory turnover ratio of Samsung Ltd was 7.1 in the financial year 2014
and decreased to 6.7 in 2015. It further decreased to 5.47 and 5.17 in 2016 and 2017. Inventory
turnover ratio of Apple Inc. was 50.33 in 2014 and increased to 62.52 in 2015. However, it
reduced to 37.6 in 2016 and further reduction was observed in 2017 to 29.05 (Apple Inc annual
reports. 2017). This highlights that stock is effectively used by both the organisations in
generating sales in the best possible manner. Ideal stock turnover ratio is as such nothing but fast
usage of inventory should be there in generating sales. This shows that organisation is able to
produce more and effectively sales revenue is increased.
Assets turnover ratio of Apple Inc. was 0.69 and increased to 0.76 in 2014 and 2015.
However, it decreased to 0.61 in 2016 and remained constant in next year. This means that ratio
is being reduced and shows that firm is not properly using assets in producing sales revenue. On
the other hand, Samsung Ltd had ratio of 0.87 in 2014 which decreased to 0.80 in 2015. It
decreased to 0.70 and further increased to 0.79. This means that firm is performing well to
produce sales as assets turnover ratio is maximised. Collectively, Samsung Ltd has good
performance because assets are utilised by it in appropriate manner.
10

Illustration 7: Debt Equity ratio
Interpretation:
The above chart shows debt equity ratio is being calculated for both the companies. For
raising long-term finance, debt and equity both are required to be attained so that firm may carry
out operational tasks in a better way. It is particularly necessary for firms because without having
adequate finance, it cannot meet out operational activities. In relation to this, solvency position
needs to be strong so that debt which is taken by the firm can be met within time duration. Debt
equity ratio shows whether firm will be able to meet long-term liabilities or will face problems.
Samsung Ltd had 0 debt equity ratio in 2014 and 2015. While, it further increased to 0.01 in next
years (Samsung Ltd annual reports. 2017). This clearly shows that firm is not using debt in its
capital structure or it can be interpreted that equity is more used in comparison to debt.
It is required that optimum capital structure should be there so as to take benefits of both
financing options. If organisation do not rely on debt, then more dividend has to be paid as
shareholder's expectations will rise. Apple Inc. had 0.25 debt equity ratio in 2014 increased to
0.44 in next year. It further maximised to 0.58 in 2016. Ratio increased to 0.72 in 2017 which
shows that firm is using debt in maximum quantum. It is required that ideal ratio of 0.4 should be
maintained. It shows that nearly 72 % is financed with the help of debt and rest 28 % is only by
raising shares.
11

Illustration 8: EPS
12

Interpretation:
It can be interpreted that EPS of both companies are calculated. Apple Inc. had 6.45 in
2014 and increased to 9.22 in 2015. It further reduced to 8.31 in 2016 and increased to 9.21 in
2017. This shows it is earning good on per share basis. On the other side, Samsung Ltd had
135.34 in 2014 which decreased in 2015 to 111.64. EPS was increased to 139.66 in 2016 and
265.12 in recent period. This implies that firm is earning quite more on per share in comparison
to Apple Inc. Hence, it is more profitable and financial health is strong.
2. Assessing CSR sections of organisation and outlining findings
Business is under obligation to effectively carry out the CSR (Corporate Social
Responsibility) which is required as it provides goods and services to society and earns profit.
CSR is a broad concept involving many elements such as fair trade practices, environmental
protection, to cope up international issues etc (McWilliams, 2015). Two big companies such as
Apple Inc. and Samsung Ltd have also carried out various CSR responsibilities in order to serve
society. In relation to this, Apple Inc. has taken initiative to empower education among the
workers, effectively complying with demands of labour unions to continue uninterrupted
business operations. Moreover, sex discrimination in the workplace is also prohibited. Along
with it, health and safety of workers is priority in organisation and it can be said that firm is
performing as per the social needs and keeping employees happy.
Furthermore, Apple Inc. has also initiated clean energy program in terms of environment
sustainability in the financial year 2017. This would be beneficial to society as nature can be kept
clean and firm can take appreciation from customers leading to increased brand name in market.
The carbon footprints is also decreased by organisation. The term means that total quantum of
carbon dioxide discharged into atmosphere because of operational activities done by company.
Hence, company has effectively taken into consideration the same and is protecting environment
from harmful gases in the best possible manner. Furthermore, nearly 96 % of power is utilised by
taking renewable resources as they can be replaced naturally and repetitive use is also possible
(Schwartz, 2017).
Samsung Ltd is engaged in providing variety of CSR responsibilities to serve society. It
complies with laws and regulations of several countries in which it operates. Company structure
is also well-maintained. On the other hand, it complies with health and safety standard named as
13

OHSAS 18001. Occasional emergencies during chemical spills, perils are also taken into
account. Furthermore, Samsung Ltd collected 2.26 million tons of wastes from the period of
2009-2015 and objective is to garner 3.9 tons by 2020 year end. Green house emissions were
alleviated to almost 70 % which is under Eco-Management initiative 2020 taken by it. Samsung
Ltd is focusing on green technology to effectively reduce impact on nature. It has garnered
numerous certifications for 3027 models of commodities at end of 2015 from countries such as
USA, Korea and European countries (Kanapickienė and Grundienė, 2015). Firm is helping local
communities as well. This is evident from the fact that Samsung Tech Institute provides
vocational education to young aspirants and figure of beneficiaries has raised over 39000 in
2015.
On the other side, CSR rankings as displayed among the tech giants, Samsung Ltd and
Apple Inc. have not been able to grab in top ten rankings. On 49th position, Apple Inc. comes
while Samsung Ltd comes to 89th position. There are various reasons which has shifted company
to downfall. Apple Inc. has faced issues related to Iphone for investigation purpose. To unlock
features, case was filed because its security features are rigid. While, Samsung Ltd has issues on
is Galaxy S7 and also Vice Chairman Lee was accused for taking bribery. Hence, it can be said
that CSR sections play crucial role in the company and both companies have to perform well to
achieve higher rankings (Suliman and et.al, 2016.).
CONCLUSION
Hereby it can be concluded that financial information plays crucial role in the company
so as to garner overall health in effective way. Moreover, CSR sections are obligation to
organisation so that it may serve society in various ways. Samsung Ltd and Apple Inc. both are
performing well and earning well in the market. However, Samsung Ltd has good profitability
position and also EPS is high. Hence, financial statements provide better clarity and to evaluate
firm's position quite effectually.
14

REFERENCES
Books and Journals
Kanapickienė, R. and Grundienė, Ž., 2015. The model of fraud detection in financial statements
by means of financial ratios. Procedia-Social and Behavioral Sciences. 213. pp.321-327.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management. pp.1-
4.
Schwartz, M. S., 2017. Corporate social responsibility. Routledge.
Suliman, A. M. and et.al., 2016. Corporate social responsibility. Corporate Social Performance:
Reflecting on the Past and Investing in the Future. p.15.
Online
Samsung Ltd annual reports. 2017 [PDF] Available Through:
<https://www.samsung.com/global/ir/financial-information/audited-financial-statements/>
Apple Inc annual reports. 2017 [Online] Available Through:
<http://investor.apple.com/financials.cfm>
15

APPENDIXES
Appendix 1 - Vertical Analysis of Samsung Ltd
Particulars 2017 % of Sales 2016
% of
Sales 2015 % of Sales 2014 % of Sales
Sales Revenue 211811887 100.00% 174047940 100.00%
17736540
4 100.00% 182273479 100.00%
Cost of Sales 114307653 53.97% 103702512 59.58%
10915063
9 61.54% 113390613 62.21%
Gross profit 97504234 46.03% 70345428 40.42% 68214765 38.46% 68882866 37.79%
Selling expenses 50075918 23.64% 45134348 25.93% 44866898 25.30% 46762235 25.65%
Operating profit 47428316 22.39% 25211080 14.49% 23347867 13.16% 22120631 12.14%
Non-operating
income (Other) 2661763 1.26% 2792003 1.60% 1490274 0.84% 3360167 1.84%
Non-operating
expenditure
(Other) 1255130 0.59% 2124281 1.22% 3291288 1.86% 1997469 1.10%
Profit share of
associates and
ventures 178098 0.08% 16814 0.01% 974040 0.55% 302763 0.17%
Financial profit 8608961 4.06% 9816615 5.64% 9294510 5.24% 7301184 4.01%
Financial
expenditure 7938380 3.75% 9231159 5.30% 8867472 5.00% 6447452 3.54%
PBIT (Profit 49683628 23.46% 26481072 15.21% 22947931 12.94% 24639824 13.52%
16

Before Income
Tax)
Income tax
expenditure 12385744 5.85% 6886812 3.96% 6099929 3.44% 3960643 2.17%
Profit 37297884 17.61% 19594260 11.26% 16848002 9.50% 20679181 11.35%
Horizontal Analysis of Samsung Ltd
Balance sheet
Assets 2017
% of
Total
assets 2016
% of Total
assets 2015
% of Total
assets 2014
% of
Total
assets
Current assets
Cash and cash
equivalents (CCE) 27005370 10.12% 27686236 12.25% 20009497 9.35% 14886207 7.31%
Short-term instruments 43717389 16.39% 45206818 20.00% 39095554 18.26% 36851212 18.09%
Short-term available-
for-sale assets 2821539 1.06% 3137052 1.39% 4090453 1.91% 2905328 1.43%
Receivables 24486410 9.18% 20933347 9.26% 22246995 10.39% 21828525 10.72%
Non-trade receivable 3632789 1.36% 3035949 1.34% 2963549 1.38% 3129033 1.54%
Made advance
payments 1550446 0.58% 1241503 0.55% 1508002 0.70% 1758570 0.86%
Prepaid expenditures 3390770 1.27% 3019469 1.34% 2802645 1.31% 2958184 1.45%
17

Stock 22088128 8.28% 15824248 7.00% 16628475 7.77% 15307614 7.52%
Other current assets
(CA) 1256378 0.47% 1134346 0.50% 915283 0.43% 1586797 0.78%
Asset held-for-sale 0 0.00% 720625 0.32% 68129 0.03% 570574 0.28%
Total current assets
12994921
9 48.71%
12193959
3 53.94% 110328582 51.54%
10178204
4 49.97%
Non-current assets
Long-term available-
for-sale assets 6853809 2.57% 5866594 2.60% 7365403 3.44% 11197303 5.50%
Held-to-maturity assets 94380 0.04% 0 0.00% 0 0.00% 0
Investment in
associates 6014052 2.25% 5033378 2.23% 4663969 2.18% 4625175 2.27%
Property, plant and
equipment (PPE) 98725136 37.01% 78867346 34.89% 76440476 35.71% 71486741 35.10%
Intangible asset 13049946 4.89% 4607573 2.04% 4770009 2.23% 4230065 2.08%
Long-term prepaid
expenditures 3036378 1.14% 3306362 1.46% 3795988 1.77% 4293402 2.11%
Net defined benefit
asset 730182 0.27% 480320 0.21% 0 0.00% 0
Deferred income tax
asset 4475107 1.68% 4588113 2.03% 4940429 2.31% 4001234 1.96%
18

Other non-current
assets 3854967 1.44% 1355388 0.60% 1767027 0.83% 2063836 1.01%
Total assets
26678317
6 100.00%
22604466
7 100.00% 214071883 100.00%
20367980
0 100.00%
Liabilities and
Stockholders' Equity
Current liabilities
Payables 8031207 3.01% 5591350 2.47% 5469187 2.55% 6996114 3.43%
Short-term loans 13940369 5.23% 10990183 4.86% 9860713 4.61% 7097409 3.48%
Other payable 12288857 4.61% 9937550 4.40% 7835568 3.66% 9120841 4.48%
Advances garnered 1104412 0.41% 1171614 0.52% 1187512 0.55% 1261584 0.62%
Withholdings 701617 0.26% 590626 0.26% 877515 0.41% 1026814 0.50%
Accrued expenditures 12374298 4.64% 10800941 4.78% 10279094 4.80% 11382283 5.59%
Income tax to be paid 6549822 2.46% 2446344 1.08% 3006828 1.40% 1910288 0.94%
Current portion of long-
term obligation 246331 0.09% 1062925 0.47% 195835 0.09% 1572233 0.77%
Provision 3797109 1.42% 3963857 1.75% 5675420 2.65% 5296128 2.60%
Other current liabilities 356421 0.13% 302781 0.13% 253810 0.12% 288393 0.14%
Liabilities held-for-sale 0 0.00% 307275 0.14% 0 0.00% 25030 0.01%
Total current liabilities 0.00% 47165446 20.87% 44641482 20.85% 45977117 22.57%
Non-current liabilities 0.00% 0.00% 0.00% 0.00%
19

Debenture 842880 0.32% 50474 0.02% 1087641 0.51% 1198517 0.59%
Long-term loans 1604177 0.60% 1072772 0.47% 235607 0.11% 89871 0.04%
Long-term (other
payables) 1806889 0.68% 2859938 1.27% 2688665 1.26% 2264891 1.11%
Net defined benefit
liabilities 344735 0.13% 149725 0.07% 317175 0.15% 177974 0.09%
Deferred income tax
liabilities 10353663 3.88% 6288411 2.78% 4556521 2.13% 3622214 1.78%
Provision 410515 0.15% 308773 0.14% 461750 0.22% 441342 0.22%
Other non-current
liabilities 2395050 0.90% 1777899 0.79% 1805127 0.84% 1328198 0.65%
Total liabilities 77148352 28.92% 59673438 26.40% 55793968 26.06% 55100124 27.05%
Equity attributable to
owners 0.00% 0.00% 0.00% 0.00%
Preference shares 105622 0.04% 103004 0.05% 105602 0.05% 105602 0.05%
Common stock 687882 0.26% 670826 0.30% 687746 0.32% 687746 0.34%
Share premium 3893542 1.46% 3797002 1.68% 3892772 1.82% 3892772 1.91%
Retained earnings
19080165
2 71.52%
16647752
4 73.65% 163645376 76.44%
14985380
0 73.57%
Other components
(Equity)
-
12288465 -4.61%
-
10289907 -4.55% -15540044 -7.26% -11252000 -5.52%
20

Other comprehensive
income attributable to
assets held-for-sale 0 0.00% -24841 -0.01% 21035 0.01% 70804 0.03%
18320023
3 68.67%
16073360
8 71.11% 152812487 71.38%
14335872
4 70.38%
Non-controlling
interests (NCI) 6434591 2.41% 5637621 2.49% 5465428 2.55% 5220952 2.56%
Total equity
18963482
4 71.08%
16637122
9 73.60% 158277915 73.94%
14857967
6 72.95%
Total liabilities and
Stockholders' equity
26678317
6 100.00%
22604466
7 100.00% 214071883 100.00%
20367980
0 100.00%
Increas
e/
Decreas
e
Increas
e/
Decrea
se
Increase/
Decrease
Particulars 2015 2014
Amoun
t Percent 2016 2015
Amou
nt
Perce
nt 2017 2016 Amount Percent
Sales
Revenue
1773654
04
1822734
79
-
490807
5 -2.69%
17404794
0
1773
6540
4
-
33174
64
-
1.87
%
2118
1188
7
17404
7940 37763947 21.70%
Cost of
Sales
1091506
39
1133906
13
-
423997
4 -3.74%
10370251
2
1091
5063
9
-
54481
27
-
4.99
%
1143
0765
3
10370
2512 10605141 10.23%
21

Gross profit
6821476
5
6888286
6
-
668101 -0.97% 70345428
6821
4765
21306
63
3.12
%
9750
4234
70345
428 27158806 38.61%
Selling
expenses
4486689
8
4676223
5
-
189533
7 -4.05% 45134348
4486
6898
26745
0
0.60
%
5007
5918
45134
348 4941570 10.95%
Operating
profit
2334786
7
2212063
1
122723
6 5.55% 25211080
2334
7867
18632
13
7.98
%
4742
8316
25211
080 22217236 88.12%
Non-
operating
income
(Other) 1490274 3360167
-
186989
3
-
55.65% 2792003
1490
274
13017
29
87.3
5%
2661
763
27920
03 -130240 -4.66%
Non-
operating
expenditure
(Other) 3291288 1997469
129381
9 64.77% 2124281
3291
288
-
11670
07
-
35.4
6%
1255
130
21242
81 -869151 -40.92%
Profit share
of associates
and ventures 974040 302763 671277
221.72
% 16814
9740
40
-
95722
6
-
98.2
7%
1780
98 16814 161284
959.22
%
Financial
profit 9294510 7301184
199332
6 27.30% 9816615
9294
510
52210
5
5.62
%
8608
961
98166
15 -1207654 -12.30%
Financial
expenditure 8867472 6447452
242002
0 37.53% 9231159
8867
472
36368
7
4.10
%
7938
380
92311
59 -1292779 -14.00%
PBIT (Profit
Before
Income Tax)
2294793
1
2463982
4
-
169189
3 -6.87% 26481072
2294
7931
35331
41
15.4
0%
4968
3628
26481
072 23202556 87.62%
Income tax 6099929 3960643 213928 54.01% 6886812 6099 78688 12.9 1238 68868 5498932 79.85%
22

expenditure 6 929 3 0% 5744 12
Profit
1684800
2
2067918
1
-
383117
9
-
18.53% 19594260
1684
8002
27462
58
16.3
0%
3729
7884
19594
260 17703624 90.35%
Balance sheet
Assets 2015 2014
Increas
e/
Decrea
se 2016 2015
Increa
se/
Decrea
se 2017 2016
Increa
se/
Decre
ase
Current assets
Amoun
t
Perce
nt
Amou
nt
Perce
nt
Amou
nt Percent
Cash and cash
equivalents (CCE)
200094
97
14886
207
512329
0
34.42
%
27686
236
2000
9497
76767
39
38.37
%
2700
5370
276862
36
-
68086
6 -2.46%
Short-term
instruments
390955
54
36851
212
224434
2
6.09
%
45206
818
3909
5554
61112
64
15.63
%
4371
7389
452068
18
-
14894
29 -3.29%
Short-term
available-for-sale
assets
409045
3
29053
28
118512
5
40.79
%
31370
52
4090
453
-
95340
1
-
23.31
%
2821
539
313705
2
-
31551
3 -10.06%
Receivables
222469
95
21828
525 418470
1.92
%
20933
347
2224
6995
-
13136
48
-
5.90%
2448
6410
209333
47
35530
63 16.97%
Non-trade 296354 31290 - - 30359 2963 72400 2.44% 3632 303594 59684 19.66%
23

receivable 9 33 165484
5.29
% 49 549 789 9 0
Made advance
payments
150800
2
17585
70
-
250568
-
14.25
%
12415
03
1508
002
-
26649
9
-
17.67
%
1550
446
124150
3
30894
3 24.88%
Prepaid
expenditures
280264
5
29581
84
-
155539
-
5.26
%
30194
69
2802
645
21682
4 7.74%
3390
770
301946
9
37130
1 12.30%
Stock
166284
75
15307
614
132086
1
8.63
%
15824
248
1662
8475
-
80422
7
-
4.84%
2208
8128
158242
48
62638
80 39.58%
Other current assets
(CA) 915283
15867
97
-
671514
-
42.32
%
11343
46
9152
83
21906
3
23.93
%
1256
378
113434
6
12203
2 10.76%
Asset held-for-sale 68129
57057
4
-
502445
-
88.06
%
72062
5
6812
9
65249
6
957.7
4% 0 720625
-
72062
5 -100.00%
Total current assets
110328
582
10178
2044
854653
8
8.40
%
12193
9593
1103
2858
2
11611
011
10.52
%
1299
4921
9
121939
593
80096
26 6.57%
Non-current assets
Long-term
available-for-sale
assets
736540
3
11197
303
-
383190
0
-
34.22
%
58665
94
7365
403
-
14988
09
-
20.35
%
6853
809
586659
4
98721
5 16.83%
24

Held-to-maturity
assets 0 0 0 0 0 0
9438
0 0 94380
Investment in
associates
466396
9
46251
75 38794
0.84
%
50333
78
4663
969
36940
9 7.92%
6014
052
503337
8
98067
4 19.48%
Property, plant and
equipment (PPE)
764404
76
71486
741
495373
5
6.93
%
78867
346
7644
0476
24268
70 3.17%
9872
5136
788673
46
19857
790 25.18%
Intangible asset
477000
9
42300
65 539944
12.76
%
46075
73
4770
009
-
16243
6
-
3.41%
1304
9946
460757
3
84423
73 183.23%
Long-term prepaid
expenditures
379598
8
42934
02
-
497414
-
11.59
%
33063
62
3795
988
-
48962
6
-
12.90
%
3036
378
330636
2
-
26998
4 -8.17%
Net defined benefit
asset 0 0 0
48032
0 0
48032
0
7301
82 480320
24986
2 52.02%
Deferred income
tax asset
494042
9
40012
34 939195
23.47
%
45881
13
4940
429
-
35231
6
-
7.13%
4475
107
458811
3
-
11300
6 -2.46%
Other non-current
assets
176702
7
20638
36
-
296809
-
14.38
%
13553
88
1767
027
-
41163
9
-
23.30
%
3854
967
135538
8
24995
79 184.42%
Total assets
214071
883
20367
9800
103920
83
5.10
%
22604
4667
2140
7188
3
11972
784 5.59%
2667
8317
6
226044
667
40738
509 18.02%
Liabilities and
Stockholders'
25

Equity
Current liabilities
Payables
546918
7
69961
14
-
152692
7
-
21.83
%
55913
50
5469
187
12216
3 2.23%
8031
207
559135
0
24398
57 43.64%
Short-term loans
986071
3
70974
09
276330
4
38.93
%
10990
183
9860
713
11294
70
11.45
%
1394
0369
109901
83
29501
86 26.84%
Other payable
783556
8
91208
41
-
128527
3
-
14.09
%
99375
50
7835
568
21019
82
26.83
%
1228
8857
993755
0
23513
07 23.66%
Advances garnered
118751
2
12615
84 -74072
-
5.87
%
11716
14
1187
512 -15898
-
1.34%
1104
412
117161
4
-
67202 -5.74%
Withholdings 877515
10268
14
-
149299
-
14.54
%
59062
6
8775
15
-
28688
9
-
32.69
%
7016
17 590626
11099
1 18.79%
Accrued
expenditures
102790
94
11382
283
-
110318
9
-
9.69
%
10800
941
1027
9094
52184
7 5.08%
1237
4298
108009
41
15733
57 14.57%
Income tax to be
paid
300682
8
19102
88
109654
0
57.40
%
24463
44
3006
828
-
56048
4
-
18.64
%
6549
822
244634
4
41034
78 167.74%
Current portion of
long-term
obligation 195835
15722
33
-
137639
8
-
87.54
%
10629
25
1958
35
86709
0
442.7
7%
2463
31
106292
5
-
81659
4 -76.83%
26

Provision
567542
0
52961
28 379292
7.16
%
39638
57
5675
420
-
17115
63
-
30.16
%
3797
109
396385
7
-
16674
8 -4.21%
Other current
liabilities 253810
28839
3 -34583
-
11.99
%
30278
1
2538
10 48971
19.29
%
3564
21 302781 53640 17.72%
Liabilities held-for-
sale 0 25030 -25030
-
100.0
0%
30727
5 0
30727
5 0 307275
-
30727
5 -100.00%
Total current
liabilities
446414
82
45977
117
-
133563
5
-
2.90
%
47165
446
4464
1482
25239
64 5.65%
471654
46
-
47165
446 -100.00%
Non-current
liabilities 0 0 #DIV/0!
Debenture
108764
1
11985
17
-
110876
-
9.25
% 50474
1087
641
-
10371
67
-
95.36
%
8428
80 50474
79240
6 1569.93%
Long-term loans 235607 89871 145736
162.1
6%
10727
72
2356
07
83716
5
355.3
2%
1604
177
107277
2
53140
5 49.54%
Long-term (other
payables)
268866
5
22648
91 423774
18.71
%
28599
38
2688
665
17127
3 6.37%
1806
889
285993
8
-
10530
49 -36.82%
Net defined benefit
liabilities 317175
17797
4 139201
78.21
%
14972
5
3171
75
-
16745
0
-
52.79
%
3447
35 149725
19501
0 130.25%
Deferred income 455652 36222 934307 25.79 62884 4556 17318 38.01 1035 628841 40652 64.65%
27

tax liabilities 1 14 % 11 521 90 % 3663 1 52
Provision 461750
44134
2 20408
4.62
%
30877
3
4617
50
-
15297
7
-
33.13
%
4105
15 308773
10174
2 32.95%
Other non-current
liabilities
180512
7
13281
98 476929
35.91
%
17778
99
1805
127 -27228
-
1.51%
2395
050
177789
9
61715
1 34.71%
Total liabilities
557939
68
55100
124 693844
1.26
%
59673
438
5579
3968
38794
70 6.95%
7714
8352
596734
38
17474
914 29.28%
Equity attributable
to owners 0 0 #DIV/0!
Preference shares 105602
10560
2 0
0.00
%
10300
4
1056
02 -2598
-
2.46%
1056
22 103004 2618 2.54%
Common stock 687746
68774
6 0
0.00
%
67082
6
6877
46 -16920
-
2.46%
6878
82 670826 17056 2.54%
Share premium
389277
2
38927
72 0
0.00
%
37970
02
3892
772 -95770
-
2.46%
3893
542
379700
2 96540 2.54%
Retained earnings
163645
376
14985
3800
137915
76
9.20
%
16647
7524
1636
4537
6
28321
48 1.73%
1908
0165
2
166477
524
24324
128 14.61%
Other components
(Equity)
-
155400
44
-
11252
000
-
428804
4
38.11
%
-
10289
907
-
1554
0044
52501
37
-
33.78
%
-
1228
8465
-
102899
07
-
19985
58 19.42%
Other
comprehensive
income attributable
21035 70804 -49769 -
70.29
-
24841
2103
5
-45876 -
218.0
0 -24841 24841 -100.00%
28

to assets held-for-
sale % 9%
152812
487
14335
8724
945376
3
6.59
%
16073
3608
1528
1248
7
79211
21 5.18%
1832
0023
3
160733
608
22466
625 13.98%
Non-controlling
interests (NCI)
546542
8
52209
52 244476
4.68
%
56376
21
5465
428
17219
3 3.15%
6434
591
563762
1
79697
0 14.14%
Total equity
158277
915
14857
9676
969823
9
6.53
%
16637
1229
1582
7791
5
80933
14 5.11%
1896
3482
4
166371
229
23263
595 13.98%
Total liabilities and
Stockholders'
equity
214071
883
20367
9800
103920
83
5.10
%
22604
4667
2140
7188
3
11972
784 5.59%
2667
8317
6
226044
667
40738
509 18.02%
Appendix 2 - Vertical analysis of Apple Inc.
Particulars 2017 % of Sales 2016
% of
Sales 2015
% of
Sales 2014 % of Sales
Sales 229234 100.00% 215639 100.00% 233715 100.00%
18279
5 100.00%
Cost of Goods
Sold 141048 61.53% 131376 60.92% 140089 59.94%
11225
8 61.41%
Gross profit 88186 38.47% 84263 39.08% 93626 40.06% 70537 38.59%
Operating
expenditures 0.00% 0.00% 0.00% 0.00%
R & D expense 11581 5.05% 10045 4.66% 8067 3.45% 6041 3.30%
29

Selling expenses 15261 6.66% 14194 6.58% 14329 6.13% 11993 6.56%
Total expenses 26842 11.71% 24239 11.24% 22396 9.58% 18034 9.87%
Operating profit 61344 26.76% 60024 27.84% 71230 30.48% 52503 28.72%
Other income/
(expenditure) 2745 1.20% 1348 0.63% 1285 0.55% 980 0.54%
PBIT (Profit
Before Income
Tax) 64089 27.96% 61372 28.46% 72515 31.03% 53483 29.26%
Income tax
expenditure 15738 6.87% 15685 7.27% 19121 8.18% 13973 7.64%
Net profit 48351 21.09% 45687 21.19% 53394 22.85% 39510 21.61%
ASSETS 2017
% of
Assets 2016 % of Assets 2015
% of
Assets 2014 % of Assets
Current assets
CCE 20289 5.41% 20484 6.37% 21120 7.27% 13844 5.97%
Short-term securities 53892 14.36% 46671 14.51% 20481 7.05% 11233 4.85%
Accounts receivable 17874 4.76% 15754 4.90% 16849 5.80% 17460 7.53%
Stocks 4855 1.29% 2132 0.66% 2349 0.81% 2111 0.91%
Deferred tax assets 0.00% 0.00% 5546 1.91% 4318 1.86%
Non-trade receivables 17799 4.74% 13545 4.21% 13494 4.65% 9759 4.21%
30

Other current assets
(CA) 13936 3.71% 8283 2.57% 9539 3.28% 9806 4.23%
Total current assets 128645 34.28% 106869 33.22% 89378 30.77% 68531 29.56%
Long-term securities 194714 51.88% 170430 52.98% 164065 56.48% 130162 56.14%
PPE 33783 9.00% 27010 8.40% 22471 7.74% 20624 8.90%
Goodwill 5717 1.52% 5414 1.68% 5116 1.76% 4616 1.99%
Intangible assets 2298 0.61% 3206 1.00% 3893 1.34% 4142 1.79%
Other non- current
asset 10162 2.71% 8757 2.72% 5556 1.91% 3764 1.62%
Total assets 375319 100.00% 321686 100.00% 290479
100.00
% 231839 100.00%
LIABILITIES AND
STOCKHOLDERS’
EQUITY
% of total
liabilities
and equity
% of total
liabilities
and equity
% of
total
liabiliti
es and
equity
% of total
liabilities and
equity
Current liabilities
Accounts payable 49049 13.07% 37294 11.59% 35490 12.22% 30196 13.02%
Accrued expenditure 25744 6.86% 22027 6.85% 25181 8.67% 18453 7.96%
Deferred revenue 7548 2.01% 8080 2.51% 8940 3.08% 8491 3.66%
Commercial papers 11977 3.19% 8105 2.52% 8499 2.93% 6308 2.72%
long-term debt
(current portion)
6496 1.73% 3500 1.09% 2500 0.86% 0 0.00%
31

Total current
liabilities 100814 26.86% 79006 24.56% 80610 27.75% 63448 27.37%
Deferred revenue
(non-current) 2836 0.76% 2930 0.91% 3624 1.25% 3031 1.31%
Long-term
borrowings 97207 25.90% 75427 23.45% 53463 18.41% 28987 12.50%
Other non-current
liabilities 40415 10.77% 36074 11.21% 33427 11.51% 24826 10.71%
Total liabilities 241272 64.28% 193437 60.13% 171124 58.91% 120292 51.89%
Shareholders’ equity 0.00% 0.00% 0.00% 0.00%
Ordinary shares 35867 9.56% 31251 9.71% 27416 9.44% 23313 10.06%
Retained earnings 98330 26.20% 96364 29.96% 92284 31.77% 87152 37.59%
other comprehensive
income -150 -0.04% 634 0.20% -345 -0.12% 1082 0.47%
Total equity 134047 35.72% 128249 39.87% 119355 41.09% 111547 48.11%
Total liabilities and
stockholders’ equity 375319 100.00% 321686 100.00% 290479
100.00
% 231839 100.00%
Horizontal analysis of Apple Inc.
Increase
/
Decreas
e
Increa
se/
Decre
ase
Increase
/
Decreas
e
32

Particulars 2015 2014 Amount Percent
201
6 2015
Amou
nt
Percen
t 2017 2016 Amount Percent
Sales 233715
18279
5 50920 27.86%
215
639
23371
5
-
18076
-
7.73%
22923
4
21563
9 13595 6.30%
Cost of
Goods Sold 140089
11225
8 27831 24.79%
131
376
14008
9 -8713
-
6.22%
14104
8
13137
6 9672 7.36%
Gross profit 93626 70537 23089 32.73%
842
63 93626 -9363
-
10.00
% 88186 84263 3923 4.66%
Operating
expenditures
R & D
expense 8067 6041 2026 33.54%
100
45 8067 1978
24.52
% 11581 10045 1536 15.29%
Selling
expenses 14329 11993 2336 19.48%
141
94 14329 -135
-
0.94% 15261 14194 1067 7.52%
Total
expenses 22396 18034 4362 24.19%
242
39 22396 1843 8.23% 26842 24239 2603 10.74%
Operating
profit 71230 52503 18727 35.67%
600
24 71230
-
11206
-
15.73
% 61344 60024 1320 2.20%
Other
income/
(expenditure) 1285 980 305 31.12%
134
8 1285 63 4.90% 2745 1348 1397
103.64
%
PBIT (Profit
Before
Income Tax) 72515 53483 19032 35.59%
613
72 72515
-
11143
-
15.37
% 64089 61372 2717 4.43%
Income tax
expenditure
19121 13973 5148 36.84% 156
85
19121 -3436 -
17.97
15738 15685 53 0.34%
33

%
Net profit 53394 39510 13884 35.14%
456
87 53394 -7707
-
14.43
% 48351 45687 2664 5.83%
Increa
se/
Decre
ase
Increas
e/
Decrea
se
Increa
se/
Decrea
se
ASSETS 2015 2014
Amou
nt Percent 2016
201
5
Amou
nt
Percen
t 2017 2016
Amou
nt Percent
Current assets
CCE 21120 13844 7276 52.56%
2048
4
211
20 -636
-
3.01%
2028
9 20484 -195 -0.95%
Short-term
securities 20481 11233 9248 82.33%
4667
1
204
81 26190
127.87
%
5389
2 46671 7221 15.47%
Accounts
receivable 16849 17460 -611 -3.50%
1575
4
168
49 -1095
-
6.50%
1787
4 15754 2120 13.46%
Stocks 2349 2111 238 11.27% 2132
234
9 -217
-
9.24% 4855 2132 2723 127.72%
Deferred tax
assets 5546 4318 1228 28.44%
554
6 -5546
-
100.00
% 0 #DIV/0!
34