Financial Analysis Management & Entrepreneurship : Assignment

Added on - 17 Feb 2021

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Financial AnalysisManagement &Entrepreneurship
ContentsContents...........................................................................................................................................2TASK 1............................................................................................................................................11.1 Compare and contrast the financial performance and financial position of the two listedcompanies....................................................................................................................................1TASK 1(B).......................................................................................................................................4SWOT Analysis of Samsung:......................................................................................................4Conclusion...................................................................................................................................7TASK 2............................................................................................................................................72.1 Critical analysis of CSR sections over the last couple of years.............................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONIn business scenario, the process of calculating business performance, running projects,budgets and other finance relevant documents in order to identify the actual efficiency andsuitability (Burns and Dewhurst, 2016). It is mainly used by the management within company sothat proper analyses stability, solvency, liquidity or profitability that support in monetaryinvestments. The main principle behind financial analysis is utilized to measure economicaltrends, fit commercial policy for enterprise, prepare strong long-term plans that aid to run andmanage business activity. This further support to determine projects or companies for investmentto increase overall profit. In this project two company are selected Samsung and Apple that areclassified as two major companies in the telecommunication and Hi tech industry.The main objective, of this project is to critically compare and contrast the financialperformance and position of these two companies with the support of ratio analysis, vertical andhorizontal analysis to identify the strength and weaknesses. Apart this critical analysis of CSRsections are done to identify which company is more powerful.TASK 11.1 Compare and contrast the financial performance and financialposition of the two listed companiesOverview of Samsung:The south Korean multinational company is one of the leading company in the world thatprovide large variety of electronic product and services to its customer at global level (AboutSamsung. 2019.About Apple. 2019). Samsung has its headquarter in Seoul which was establishedin 1938 by Lee Bung-Chul as a trading company. With the passage of time, the company haveadopted the diversification strategy and expand business areas that includes food processing,insurance, securities, textile and retail. Respective company entered in the electronic industry inyear 1969 and nationalised its operation and electronic in specific mobile phone and other itemssuch as semiconductor that increases the profit of company during a specific period of time. Thecompany associate have different sort that includes Samsung electronic, Heavy industries andengineering and Samsung construction. The very first product introduced by company wereblack and white T.V and that company began to export several home purpose electronic productat global level. With the emergent need of data protection company also established Samsung1
Data system in 1985 to provide other companies with a authentic system so that usefulinformation can be stored and protected. This company is endlessly occupied in large operationthat ease the process of humanandis making sincere attempt to attain regular growth that benefitfor better future by utilising and generating innovative technologies and ideas.In recent time, the company is facing a huge competition at local and global level butmanaged to be a leading company one in electronic industry by continuously modifying itstechniques and technology. Thus, Samsung provides best products and services, create value andencourage smart lifestyles for its consumers all over the globe.Analysis of financials status:Actual strength and stability of an organisation can be determined by proper analysis offinal accounts and yearly statements. From the financial statement between 2014-18, it has beenanalysed that company have shown improvement in business and it keeps on growing in somesignificant areas. The overall profitability and revenues shows positive changes as revenue keepson increasing year by year that help Samsung to expand and diversify their product. In year 2014the has a profit percentage of 38.07% that keeps of increasing and has shown addition in profitby 8%. In year 2016 it raised by 2% and in 2017 they business has shown huge addition to theprofit by adding 6% up to 46.03%. From the analysis it is also figure out that cost of revenue hasdeceased in there following year helping Samsung to enlarge its business and maximise overallprofitability. The examination of financial statements of company it was also observed that entireassets for company had also raised by 23.63% between year 2014-17. The value of total assetsin year 2017 were3,01,75,21,00,000as compared to the2,30,42,29,58,000in year 2014.Thus, it is stated that Samsung has shows continuous improvement in profit, revenue andassets that help them to survive in better manner and attain competitive advantages.Ratio analysis:Liquidity/FinancialHealth2014201520162017Current Ratio2.212.472.592.19Quick Ratio1.731.982.121.71Financial Leverage1.421.41.411.462
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