Samsung Financial Analysis

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Company and Market Introduction.
Samsung Electronics is the world leader in the production of semiconductor and telecommunications equipment as well as in digital convergence technologies. In the 87 offices of the company in 47 countries work about 70,000 people. The company consists of four main units: Digital Media Network Business, Device Solution Network Business, Telecommunication Network Business and Digital Appliance Network Business.
Today it is difficult to find an industry that does not involve Samsung Company and products of it. Under this brand is produced everything from microwaves and toasters to digital cameras and stereos from cars to ocean-going vessels and aircraft. On the domestic market in South Korea Samsung Group also deals with financial transactions, insurance and security activity, resulting in the formation of more than 50% of the total state budget.
Samsung Electronics Co., Ltd. mainly associated with production of electronic products. It works in two directions: end product production and component production. Its end product plants produce digital media products, such as digital televisions (TVs), monitors, printers, computers, air conditioners, refrigerators and others, and communication products, such as mobile phones and network systems. Its component factories produce semiconductors, such as memories, storages and others, and liquid crystal display (LCD) products, such as thin film transistor (TFT) LCDs and active-matrix organic light-emitting diodes (AMOLEDs). On April 1, 2012, it merged with SAMSUNG LED CO.,LTD., and spun-off its LCD business. On August 13, 2012, it acquired a 100% stake in its sub-subsidiary SEHF Korea from its overseas subsidiary SEHF. On December 1, 2012, it merged with its wh...

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...o measuring the number of times per period, a business sells and replaces its entire batch of inventory again. In general, a higher value of inventory turnover indicates better performance and lower value means inefficiency in controlling inventory levels.
Settlement Period for Trade Receivables
Samsung 50,30 53,43 48,41

Sales Revenue to Capital Employed
Samsung 1,70 1,53 1,51

Liquidity Ratios
Current Ratio
Samsung 1,54 1,61 1,86
LG Electronics 1.07 1.11 1.14

Acid Test Ratio
Samsung 1,20 1,26 1,48
LG Electronics 0.69 0.75 0.69

No credit Ratio
Samsung 9,07 9,03 11,92

Capital Gearing Ratio
Samsung 0,05:1 0,09:1 0,09:1

Interest cover ratio
Samsung 29,70 24,20 50,40

Investors’ ratios
Earnings per share
Samsung 0,09 0,08 0,15

Price/Earnings ratio
Samsung 12,67 15,14 8,12

Dividend Yield Ratio
Samsung 0,94 0,42 0,65

Dividend cover ratio
Samsung 8,42 15,70 18,85

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