Samsung Financial Analysis

Submitted By Raman-Turka
Words: 568
Pages: 3

Analyzing the Samsung Financials:

Income Statement: - (Amount in thousands of US dollars) By analyzing the Income Statement of Samsung, we have come to know that Samsung has achieved its target in 2013 and made profit of $28,877,821. Therefore their sales assisted them to cross their break even points and gave them enough revenue to overcome the both cost, fixed and variable. In 2012 the Income Statement stated a profit of $22,595,741 which was less than 2013 because of high sales volume and as well less cost of various expenses. Revenue in 2013 was higher than 2012, difference of $26,143,328 was seen in the income statement which indicates more sales during the current year and this becomes the initial stage to understand that the company's current products are attracting to the customers. Income statement states that finance cost in 2012 was $7,518,667 and 2013 was $7,348,595 which means that company is paying less interest to its investors during 2013. The other expenses were increased gradually on yearly basis which did not make any enormous difference on the income statement and even the income tax was increased as the company made more profit during 2013.
Operating Margin= Operating income / Revenue
2013 = 0.16 or 16%
2012 = 0.14 or 14%
Higher financial risk has been taken during the 2012 as compared 2013.

Net Profit Margin = Net profit / Revenue
2013= 0.13 or 13%
2012= 0.11 or 11%
Higher profit margin reported during the 2013 income statement

Cash Flow Statement: - (Amount in thousands of US dollars) The company keeps record of its cash during each year for the immediate purchase of any asset or invest in any product which requires more investment and informs the managers about the firm's liquidity. Samsung cash flow statement indicates that at the end of 2012 the company had cash of $17,806,747 whereas in 2013 the company had the $15,431,422 in their hand which was 2,375,325 less than 2012. Like other companies Samsung also raise all the cash from the operating, investing and financing activities and following are the amounts in 2013:
Operating= $44,259,869
Investing= ($42,402,179)
Financing= ($3,920,241)

Balance Sheet: -