Financial Performance Analysis of Apple and Samsung

FAME

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Critically comparing and contrasting financial performance of Samsung and Apple for last
four years.....................................................................................................................................1
.....................................................................................................................................................3
.....................................................................................................................................................4
2. Analysing CSR sections of companies and commenting on findings...................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18
APPENDIXES...............................................................................................................................19

INTRODUCTION
Financial management and information have significant role in assessing overall financial
position in effective manner. Present report deals with Apple and Samsung both are tech-giants
and comparison of financial performance of companies will be undertaken in the report. For
accomplishing this, widely used technique, ratio analysis will be applied for assessing
performance over four years starting from 2014-2017. Moreover, vertical and horizontal analysis
for both companies will be applied for same period. Apart from it, CSR sections of companies
will be analysed and explained in report. Thus, overall financial performance of organisations
will be assessed and interpreted and better performing firm will be analysed.
MAIN BODY
1. Critically comparing and contrasting financial performance of Samsung and Apple for last
four years
Financial Ratios of Samsung and Apple are listed below-
Profitability Ratios
Samsung Apple
Particulars Formula 2017 2016 2015 2014 2017 2016 2015 2014
Profitability
Ratios
Net profit
3729788
4
1959426
0 1684802 20679181 48351 45687 53394 39510
Gross profit
9750423
4
7034542
8 68214765 68882866 88186 84263 93626 70537
Sales Revenue
2118118
87
1740479
40 177365404 182273479 229234 215639 233715 182795
Gross profit
margin
Gross
profit/Sal
es
revenue 0.46 0.4 0.38 0.37 0.38 0.39 0.4 0.38
1

Net profit margin
Net
profit/Sal
es
revenue 0.17 0.11 0.09 0.11 0.21 0.21 0.22 0.21
2

Illustration 1: Gross profit ratio
Illustration 2: Net profit ratio
3

Interpretation-
It can be interpreted from above graphs that profitability ratios are being computed for
both companies. Gross profit is one of the important profitability measure which is carried out by
deducting cost of goods manufactured from sales revenue. It can be analysed that Apple had
gross profit ratio of 0.38 in 2014 which reached to 0.40 in 2015. This clearly shows that firm is
able to reduce expenses on sales and thus, ratio is improved. Moreover, in 2016, it was reduced
and come to 0.39 and further to 0.38 in 2017. It shows that ratio is steady over last four years. On
the other hand, Samsung had ratio of 0.37 in 2014. While, in next year, 0.38 was attained and
0.40 in 2016. In 2017, gross profit ratio had reached record high of 0.46 (Annual report of
Samsung. 2017). This shows that firm is able to initiate reduction upon its expenses in the best
manner possible.
Net profit is calculated which shows operational and non-operational expenditures which
are deducted from gross profit to arrive at net income. Taxes and interest are accounted for and
subtracted from profit and as a result, it is also known as PAT (Profit After Tax). It can be
assessed that Samsung had net profit ratio of 0.11 in 2014, reached to 0.09 in 2015. It reached to
0.11 in 2016 and increased to 0.17 in next period. This shows that it has initiated good control
over the expenses in order to ascertain good quantum of profits in the best manner possible.
Apple had ratio of 0.21 in 2014 which increased in 2015 to 0.22 showing that it had good
position in comparison to Samsung in following two years. On the other hand, it can be analysed
that in 2016 and 2017, ratio was 0.21.
It can be assessed that in accordance to gross profit ratio, Samsung has more of it as it is
able to control its expenses in a better manner. On the other hand, net profit ratio of Apple is
good as overall expenditures are being controlled in a better manner. This shows that collectively
Apple has good profitability position as all expenses are being controlled and monitored from
time-to-time leading to have profitable position in effective manner (Annual report of Apple.
2017). It is required that Samsung should control its manufacturing and interest expenses so that
higher profits may be attained in a better manner. This will be beneficial for the firm in long run
and rivalries will be outreached with ease. Hence, profitability ratios shows financial health of
company which is required to ascertained in a better way.
Liquidity Ratios
4

Samsung Apple
Particulars Formula 2017 2016 2015 2014 2017 2016 2015 2014
Liquidity Ratios
Current Assets
1299492
19
1219395
93 110328582 101782044 128645 106869 89738 68531
Current Liabilities
5939044
3
4716544
6 44641482 45977117 100814 79006 80610 63448
Stock
2208812
8
1582424
8 16628475 15307614 4855 2132 2349 2111
Prepaid Expenses 3390770 3019469 2802645 2958184 0 0 0 0
Quick/ Liquid
assets
2547889
8
1884371
7 19431120 18265798 4855 2132 2349 2111
Total liquid assets
(Current Assets-
Liquid assets)
1044730
21
1030958
76 90897462 83516246 123790 104737 87029 66420
Current ratio
Current
Assets/C
urrent
liabilitie
s 2.18 2.58 2.47 2.23 1.27 1.35 1.1 1.08
Quick ratio
Liquid
Assets/C
urrent
liabilitie
s 1.75 2.18 2.03 1.81 1.22 1.32 1.07 1.04
5

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

Interpretation-
The above graphs show liquidity position of Apple and Samsung for last four years quite
effectively. The pictorial representation provides clarity as to whether which firm has better
liquidity position over the years. The current ratio has been calculated. It is useful measurement
of carrying out whether firm could meet its short-term liabilities to the concerned parties within
stipulated time or not. In simple words, it shows how current assets can be quickly converted into
cash and cash equivalents to pay-off liabilities to parties. Suppliers, creditors of materials are of
main concern of assessing this ratio. The ideal current ratio turns out to be 2:1 meaning for
meeting every one liability, there are two current assets. Thus, ensuring that short-term
obligations are paid off within one year and no shortcomings are arrived at.
Samsung had current ratio of 2.23 in 2014 which is highly effective as it is showing that
for one liability, current assets of 2.23 are available being favourable for firm. It can be assessed
that in 2015, ratio was 2.47 and reached to 2.58 in 2016. However, it decreased in 2017 to 2.18,
thus, requires to quickly convert assets to cash for enhancing liquidity position. Apple had ratio
of 1.08 in 2014 which shows that firm would face difficulties in meeting obligations. It further
reached to 1.1 in 2015 and increased to 1.35 and 1.27 in 2016 and 2017 respectively. This shows
that firm needs to enhance its current ratio else it will have to face repercussions of the same.
Acid Test ratio is another important ratio for assessing liquidity position in the best way
possible. It shows how efficiently firm has liquidity position in terms of its extreme quick assets.
Here, quick assets or liquid assets is arrived by deducting inventory and prepaid expenses if any
from current assets. The resultant shows liquid assets of company in effective manner. It can be
analysed that ideal ratio is 1:1 which means for every single asset, one liability should be present
for converting into cash and meeting obligations. It can be assessed that Samsung had quick ratio
of 1.81 in 2014 which increased to 2.03 in next year.
The ratio further increased to 2.18 and 1.75 in 2016 and 2017 respectively. It can be
assessed that Samsung has more than ideal ratio which is good but it is required to utilise quick
assets judiciously. Apple had ratio of 1.04 in 2014, maximised to 1.07 in 2015. Furthermore,
quick ratio reached to 1.32 and 1.22 in next two years respectively. This shows that Apple also
7

has good liquidity position as per ideal ratio. However, by referring to overall liquidity position
of both companies, Samsung has better position.
Efficiency Ratios
Samsung Apple
Particulars Formula 2017 2016 2015 2014 2017 2016 2015 2014
Efficiency Ratios
Cost of Goods
manufactured
1143076
53 103702512
10915063
9 113390613 141048 131376 140089 112258
Stock
2208812
8 15824248 16628475 15307614 4855 2132 2349 2111
Total assets
2667831
76 226044667
21407188
3 203679800 375319 321686 290479 231839
Sales Revenue
2118118
87 174047940
17736540
4 182273479 229234 215639 233715 182795
Inventory turnover
ratio
Cost of
Goods
manufact
ured/Ave
rage
inventory 5.17 5.47 6.7 7.1 29.05 37.6 62.52 50.33
Asset turnover
ratio
Sales
revenue/
Average
total
assets 0.79 0.7 0.8 0.87 0.61 0.61 0.76 0.69
8

Illustration 5: Inventory Turnover ratio
Illustration 6: Asset turnover ratio
Interpretation-
It can be assessed that efficiency ratios are calculated showing how efficiently firm uses
its resources in optimum manner. These ratios are important for assessing company's efficiency
in using resources which are scarce in the best possible way. It covers inventory or stock
turnover ratio and asset turnover ratio in effective manner. Stock turnover ratio provides clarity
9

as to how efficiently firm uses its inventory for converting the same into sales revenue. Less the
ratio, better health of company. Apple had inventory ratio of 50.33 in 2014 which reached to
62.52 in next year. Furthermore, figure reached to 37.6 and 29.05 in 2016 and 2017 respectively.
It implies that organisation has improved its ratio by utilising inventory in effective manner.
Samsung had similar ratio of 7.1 in 2014 which has decreased to 6.7 in 2015. On the
other hand, ratio decreased to 5.47 in 2016 and 5.17 in 2017. These figures clearly shows that
firm is able to initiate healthy usage of stock for meeting demand of customers. It can be
analysed both Hi-Tech rivals have good inventory turnover ratio. Efficiency ratio such as asset
turnover ratio is also computed for both organisations. This ratio means how firm efficiently
utilises its assets for generating good sales in the best manner possible. It is quite useful for
business as it provides clarity of how asset is being used in the firm and how return is generated
from it for increasing sales.
It can be analysed that Samsung had asset turnover ratio of 0.87 in 2014 which decreased
to 0.80 in next year. Furthermore, it reduced to 0.70 in 20163 and increased in 2017 to 0.79. This
shows that asset turnover ratio is not steady and it requires using its assets for enhancing sales in
a better way. On the other hand, Apple had ratio of 0.69 in 2014, elevated to 0.76 in next period.
It remained unchanged in 2016 and 2017 as 0.61 was being attained. This shows that firm is
required to use asset in judicious manner for maximising revenue. Thus, Samsung had good asset
turnover ratio in comparison to Apple.
Solvency Ratios
Samsung Apple
Particulars
Form
ula 2017 2016 2015 2014 2017 2016 2015 2014
Solvency Ratios
Long-term loans 1604177 1072772 235607 89871 97207 75427 53463 28987
Shareholders'
Equity
18963482
4 166371229 158277915
14857967
6 134047 128249 119355 111547
10

Debt Equity ratio
Debt/
Equity 0.01 0.01 0 0 0.72 0.58 0.44 0.25
Illustration 7: Debt equity ratio
Interpretation-
It can be analysed that solvency ratios have been calculated for technology giant firms
from 2014 to 2017 in effective manner. It is required to ascertain position of firm with reference
to its capital structure which is a mix of debt and equity for meeting capital requirements. It can
be assessed that debt equity ratio indicates relative proportion of stockholders' equity and debt
used for meeting financing requirements of company's assets in a better way. It can be assessed
that ideal debt equity ratio is 0.40 which implies that out of 100 % finance, 60 % should be
raised from equity and remaining 40 % from debt in order to minimise risks. This is because debt
is a riskier source of finance and more usage of the same leads to increased burden on company
to meet scheduled repayments of principal and interest amount.
It is required that there should be 40 % of debt and 60 % of equity for financing assets in
effective manner. On the other hand, Samsung had ratio of 0 in 2014 and 2015 which means that
firm is not using debt for financing requirements. While, ratio reached 0.01 in next two years
implying that organisation is purely focusing on raising finance through issuance of shares only.
11

Apple, on the other side, had debt equity ratio of 0.25 in 2014 which maximised to 0.44 in 2015.
Furthermore, ratio reached to 0.58 in next period and elevated to 0.72. It implies that Apple is
using more of debt in comparison to equity and Samsung is not at all using debt.
It can be interpreted from capital structure of Apple that it should use more of equity as
debt is a riskier financing option and creates obligation for repayments. On the other hand,
Samsung is required to use more of debt as raising funds from equity will increase shareholders'
expectations for offering higher dividend which will hike share price of firm abnormally. Hence,
it is required that perfect balance of equity and debt should be used in capital structure so that
optimum utilization of both sources of finance could be used.
Investment Ratios
Samsung Apple
Particulars Formula 2017 2016 2015 2014 2017 2016 2015 2014
Investment
Ratios
EPS
Net profit/
Average
shares
outstanding 265.12 139.66 111.64 135.34 9.21 8.31 9.22 6.45
12

Illustration 8: EPS
Interpretation-
It can be analysed that investment ratios are of much importance to the investors as they
provide money to company and expects good return over their amount in the best manner
possible. EPS (Earnings Per Share) is widely used ratio for ascertaining how much firm's stock is
earning in the market in which it is trading in effective manner. It can be assessed that EPS of
Samsung was 135.34 in 2014 which decreased to 111.64 in next year. However, it was increased
to 139.66 in 2016 and further elevated to 265.12 in 2017. This means that portion of company's
profit allocated to per share of stock in effective way.
It can be interpreted that shares of Samsung is earning good profits on per share basis
which is beneficial for organisation and investors' confidence will be enhanced in a better
manner. On the other hand, Apple had EPS of 6.45 in 2014 which elevated to 9.22 in 2015. This
implies that company is performing good in the market as ratio is increased up to good extent.
However, it decreased to 8.31 in 2016 and further increased to 9.21 in 2017. Thus, it can be
analysed from EPS of both companies that Samsung has better EPS as investors are provided
with good returns on investment made by them.
Vertical Analysis of Samsung (Refer to Appendixes)
13

It can be assessed from the vertical analysis of company that sales are increased up to a
high extent. In 2014, gross profit was 37.79 % of sales (in %) which was further increased to
38.46 % in 2015. Moreover, in 2016, gross profit % was further elevated to 40.42 % and reached
to 46.03 % in effective manner. On the other hand, net profit % was 11.35 % in 2014 which
decreased to 9.50 % in 2015. However, it reached to 11.26 % in 2016 and highly maximised to
17.61 % in 2017. This shows that firm is able to attain good quantum of profits.
Horizontal Analysis of Samsung (Refer to Appendixes)
The horizontal analysis shows the position of company. Balance sheet figure shows that
assets were 49.97 % in 2014 which increased to 51.54 % in 2015. Moreover, it reached to 53.94
% in 2016 and decreased to 48.71 % in 2017. Non-current assets are also enhanced. This means
that firm has good position at date. The income statement also shows that increment is found and
firm is able to accomplish higher net profits in the best manner possible by satisfying customers
quite effectively.
Vertical Analysis of Apple (Refer to Appendixes)
The vertical analysis of the Apple had been computed. The gross profit % was 38.59 % in
2014 which increased to 40.06 % in 2015. However, it decreased to 39.08 % in 2016 and further
alleviated to 38.47 %. While, net profit was 21.61 % in 2014 which increased to 22.85 % in
2015. Moreover, it remained 21.19 % in 2016 and 21.09 % in 2017.
Horizontal Analysis of Apple (Refer to Appendixes)
It can be interpreted from balance sheet that current assets were 52.56 % in 2015 and in
next year, figure was remain unchanged. However, decrease in current assets were found out as -
0.95 % in 2017. Thus, Apple is required to improve upon its current assets.
2. Analysing CSR sections of companies and commenting on findings
CSR is required to be carried out by the business so that society may benefited and
company could also earn profits with ease. It is a broader concept which includes environmental
protection from harmful gases emitted by manufacturing of goods, fair trade activities and to
cope with the global business issues. It is required to be fulfilled so that firm may be able to
enhance its position in the market. Both companies abide by CSR by which business could attain
benefits and also serve society as per its norms (Schwartz, 2017). Apple has introduced an
14

initiative for providing education among employees and meeting demands of labour union in
effective manner.
Apple has also taken an initiative for prohibiting sex discrimination at the workplace.
This means that female and male employees are given equal chance. Furthermore, occupational
health and safety is also taken into consideration implying that business has taken due care of
workers in effective way. Thus, it is meeting standards and employees are providing better
avenues in effectual manner. Apart from it, for environment sustainability, Apple has initiated
clean energy programs in 2017. The main motive of providing such program is to kept clean the
environment and benefit society up to a high extent (Suliman, Al-Khatib and Thomas, 2016).
Another harmful factor which is carbon footprints is controlled by firm. This term highlights
total amount of harmful carbon dioxide released into atmosphere by company. Moreover, 96 %
power is re-used by taking into account renewable resources and as a result, energy is saved
quite effectually.
Samsung is another giant in telecommunication and hi-tech industry which also takes
certain CSR measures for enhancing its brand awareness in market. On the other hand, it can be
analysed that firm is complying with laws and regulations of countries in which it operates.
Moreover, health and safety is complied with such as OHSAS 18001. Moreover, it is taken
initiative for resolving occasional emergencies during perils, spills of chemical products etc. It
can be assessed that it has been reducing wastage over recent years in effectual manner (Grayson
and Hodges, 2017). The reduced use of energy is being proven to be beneficial for firm in
effectual way.
Samsung had collected 2.26 million tons of wastes in the 2009-2015 financial year which
is remarkable height being achieved by firm in the best manner possible. Moreover, it has listed
that till end of 2020, 3.9 million of tons will be accomplished in a better manner. On the other
hand, it can be analysed that firm has taken initiative of Eco Management 2020 in which nearer
to 70 % of green house gas emissions are reduced which is another achievement by organisation
in carrying out CSR towards society (Bhattacharya and et.al., 2017). Moreover, green technology
is emerging and it has gained certifications for 3027 models of products including mobile
handsets in 2015 from nations including Korea, USA and European nations. Moreover,
15

vocational education is being imparted to young people and more than 39000 have achieved
education.
It can be analysed that in global CSR rankings, Apple comes at 49th position and
Samsung is far behind at 89th position. Apple has not being able to attain good rank because of
problems faced by iPhone as it has indulged in for purpose of investigation. Case was filed in
behalf of this as security feature of unlocking phone by unauthorised access was done hampering
security of phone. On the other side, Samsung had issues in Galaxy S7 and its Vice Chairman
Lee had been accused for taking on bribery. Thus, it is required to attain higher rankings in CSR
by firms.
CONCLUSION
Hereby it can be concluded that financial management in business play crucial role in
enhancing overall financial health of company in effective manner. The outcome that can be
generated from report is that Samsung has more healthy financial position in comparison to
Apple as clarified by computation of ratios for last four years. Apart from it, both companies
have taken CSR responsibilities for benefiting society on one side and increasing their profits
and brand image on the other side. Thus, financial statements are analysed and horizontal and
vertical analysis are also carried out.
16

REFERENCES
Books and Journals
Bhattacharya, C.B and et.al., 2017. Corporate Social Responsibility. Journal of International
Law. 26(2).
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Schwartz, M. S., 2017. Corporate social responsibility. Routledge.
Suliman, A.M., Al-Khatib, H. T. and Thomas, S. E., 2016. Corporate social
responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the
Future. p.15.
ONLINE
Annual report of Samsung. 2017 [PDF] Available Through:
<https://www.samsung.com/global/ir/financial-information/audited-financial-statements/>
Annual report of Apple. 2017 [Online] Available Through:
<http://investor.apple.com/financials.cfm>
17

APPENDIXES
Vertical Analysis of Samsung
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
Before Income
49683628 23.46% 26481072 15.21% 22947931 12.94% 24639824 13.52%
18

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
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%
Stock 22088128 8.28% 15824248 7.00% 16628475 7.77% 15307614 7.52%
19

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%
20

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%
21

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%
22

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%
Gross profit 6821476 6888286 - -0.97% 70345428 6821 21306 3.12 9750 70345 27158806 38.61%
23

5 6 668101 4765 63 % 4234 428
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%
24

Income tax
expenditure 6099929 3960643
213928
6 54.01% 6886812
6099
929
78688
3
12.9
0%
1238
5744
68868
12 5498932 79.85%
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%
25

Non-trade
receivable
296354
9
31290
33
-
165484
-
5.29
%
30359
49
2963
549 72400 2.44%
3632
789
303594
9
59684
0 19.66%
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%
26

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'
27

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%
28

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%
29

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
9%
0 -24841 24841 -100.00%
30

to assets held-for-
sale
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%
Vertical analysis of Apple
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%
31

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%
Other current assets
(CA) 13936 3.71% 8283 2.57% 9539 3.28% 9806 4.23%
32

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%
33

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
Increase
/
Decreas
e
Increa
se/
Decre
ase
Increase
/
Decreas
e
34

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%
35

%
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!
36