Business Finance
Financial Analysis on Samsung Electronics
9th March 2013
Xingzi Ge
Content
1. Introduction 1.1 Purpose of The Report 3 1.2 Analysis of Electronics Industry 3
2. Summary of Samsung Electronics 2.1 Introduction of Samsung Electronics 3 2.2 Summary of Performance of Samsung Electronics in 2011 4 2.3 Future Strategy 4
3. Financial Ratio Analysis on Financial Report From 2009-2011 3.1 Profitability 5 3.2 Liquidity 5 3.3 Solvency 6
4. Conclusion 7
Bibliography 8
Appendix 1 10
Appendix 2 11
Appendix 3 12
Appendix 4 14
1 Introduction
1.1 Purpose of The Report
The objective of the report is to analyze Samsung Electronics Co., Ltd in relation to the last three years financial summary, with the aim of predicting future development of Samsung Electronics based on its past performance as well as providing some suggestions to clients about investment.
1.2 Analysis of Electronics Industry
Samsung Electronics belongs to electronics industry, which is defined as a “propulsive sector” (Hirschman, 1958). Mann and Kirkegaard (2006) state that the electronics industry is the world’s most essential goods-producing business. On one hand, it has more employees as well as earns
9th March 2013
Xingzi Ge
Content
1. Introduction 1.1 Purpose of The Report 3 1.2 Analysis of Electronics Industry 3
2. Summary of Samsung Electronics 2.1 Introduction of Samsung Electronics 3 2.2 Summary of Performance of Samsung Electronics in 2011 4 2.3 Future Strategy 4
3. Financial Ratio Analysis on Financial Report From 2009-2011 3.1 Profitability 5 3.2 Liquidity 5 3.3 Solvency 6
4. Conclusion 7
Bibliography 8
Appendix 1 10
Appendix 2 11
Appendix 3 12
Appendix 4 14
1 Introduction
1.1 Purpose of The Report
The objective of the report is to analyze Samsung Electronics Co., Ltd in relation to the last three years financial summary, with the aim of predicting future development of Samsung Electronics based on its past performance as well as providing some suggestions to clients about investment.
1.2 Analysis of Electronics Industry
Samsung Electronics belongs to electronics industry, which is defined as a “propulsive sector” (Hirschman, 1958). Mann and Kirkegaard (2006) state that the electronics industry is the world’s most essential goods-producing business. On one hand, it has more employees as well as earns
Bibliography: Samsung Electronics 2010 and 2011 Annual Report Balch, K., 2012 Catherine, M., and Jacob, K., 2006. Accelerating the Globalization of America: The Next Wave of Information Technology. Washington, DC: Institute for International Economics. Korea Associates Business Consultancy Ltd., 2012. Global Value Chain Analysis on Samsung Electronics Malikova1, O., and Brabec, Z., 2011. The influence of a different accounting system on informative value of selected financial ratios. [Online]. Available at: <URL:http://web.ebscohost.com> [Accessed 9th March 2013]. Mclaney, E., and Atrill, P., 2012. Accounting: an Introduction. 6th ed. London: Pearson. M2 PRESSWIRE, 2012. Research and Markets: Analysis of Samsung 's Competitiveness in 2012(C)1994-2012 M2 COMMUNICATIONS Riley, J., 2012 Appendix 3: Financial Statements in 2009, 2010, and 2011 2009&2010： Calculation 2009=10925259/(73045202 + 4930163) * 100% = 14% Calculation 2010=17296536/(89349091 + 4994932) * 100% = 18.3% Calculation 2011=16249717/(101845323 + 9466917) * 100% = 14.6% Calculation 2009=(54211297-9839329)/34204424=1.30 Calculation 2010=(61402589-13364524)/39944721=1.20 Calculation 2011=(71502063-15716715)/44319014=1.26 Calculation 2009=4930163/(4930163+73045202)=6.3% Calculation 2010=4994932/(4994932+89349091)=5.3% Calculation 2011=9466917/(9466917+101845323)=8.5%