1. Ratio Analysis of Samsung & htc
Nimra mazhar
Fatima btool
Omama sanober
Qudsia yousaf
2. History of Samsung:
Start of Samsung : in 1938
The meaning of word Samsung is “Tristar” or “Three star.
The word Three represents something “Big, Numerous and Powerful”. .
Lee Byung-chull of a large landowning family in the Uiryeong country moved to nearby Daegu
city and founded Samsung Sanghoe in Taegu, Korea. Samsung started out as a small trading
company which sold dried fish locally grown groceries and made noodles with a capital pf 30000
won.
3. Introduction of htc for slides
HTC stands for "HighTech Computer" Corp.,CherWang, H. T. Cho and Peter Chou founded
HTC in 1997.
Headquarter of the HTC is located at Xinghua Road,TaoyuanCity,Taiwan. In 1997 HTC started
off as a Personal DataAssistant (PDA) producer, in cooperate with Microsoft. In 1998: HTC
began designing some of the world's first touch and wireless handheld data assistant(PDA). In
2005: HTC introduced the first Microsoft 3G Phone. In 2010: HTC launched the brand
tagline "quietly brilliant", and theYOU campaign, HTC's first global advertising campaign
and the company launched the HTC EVO 4G, the first 4G-capable phone in the United State .
In 2011: HTC started working with Luxgen motors. HTC confirmed a plan for a strategic
partnership with Beats Electronics involving 51 percent of Beats' shares.The Best Global
Brands rankings released by Interbrand, listed HTC at #98. In 2012: 2012, HTC lost much of
the U.S. market share due to increased competition from Samsung and Apple. HTC moved its
headquarters fromTaoyuanCity to Xindian District, NewTaipeiCity. In 2014: In March 2014,
HTC released the HTC ONE (M8). In June and October 2015, HTC reported net loss due to
increased competition, as well a major loss of market share. On 16 May 2017, HTC announced
the U11, the successor to the previous year's HTC 10.
4. Ratio analysis
Profitability ratios
Ratio: years 2013 2014 2015
Gross profit 90996358 77927187 77171364
net sales 228692667 206205987 200653482
*100
Gross profit
ratio
40% 38% 38%
1-Gross profit ratio:
Gross profit =gross profit/net sales*100
5. 2 Net profit ratio:
Net profit =net profit/net sales*100
2013 : Net profit=gross profit-operating expenses-interest-tax
=90996358-54211345-319342-3386018- 0 =33079653
2014 : Net profit = gross profit-operating expenses-interest-tax
=7792187-52902116-592940-2161109-0 =22271022
2015 : Net profit = gross profit-operating expenses-interest-tax
=77177364-50757922-567181-0 =22444636%
Ratio: years 2013 2014 2015
net profit 33079653 22271022 22444636
net sales 228692661 206205987 200653482
*100
Net profit
ratio
14.46% 10.80 % 11.19%
6. Ratio: years 2013 2014 2015
Operating profit 36785013 25025071 26413442
Net sales 2286926
67
206205987 200653482
* 100
Operating profit
ratio
16.08% 12.14% 13.16%
3 Operating profit:
Operating profit ratio = operating profit / net sales *100
7. Turnover ratio:
1 Account receivable ratio:
A/R debtor ratio= average A/R =net credit sales
2013: Average account receivable=opening + closing/2
=27875934+26674596/2=27275265
2014: Average account receivable=opening + closing/2
=24694610+27875934/2=26285272
2015: Average account receivable=opening + closing/2
=25168026+24694610/2 = 24931318
Turnover ratio
8. Ratio: years 2013 2014 2015
net credit sales 228692667 206205987 20065482
average account receivable 27275265 26285272 24931318
Account receivable debtor ratio 8.38 times 7.84 times 8.05 times
Ratio : year 2013 2014 2015
average account
receivable
27275265 26285272 24931318
net credit sales 22862667 206205987 200653482
*365
Debtor collection
period
44 days 47 days 45.ays
3 Debtor collection period:
Debtor collection period=average account receivable/net credit sales *365 days
9. RATIO;YEARS 2013 2014 2015
Sales 228692667 206205987 200653482
total assets 214075018 230422958 242179521
Total assets
turnover ratio
107 times 0.89 times 0.83 times
4-Total assets turnover ratio
Total assets turnover ratio=sales/total assets
5. Fixed asset turnover
Fixed asset turnover = sales/fixed asset:
10. Ratio:years 2013 2014 2015
fixed assets 228692667 206205987 200653482
Sales 103314747 115146026 117364796
Fixed asset turnover 2.21 times 1.788 times 1.71 times
7.Inventory turnover ratio:
Inventory turnover ratio = CGS/avg inventory
2013; Cost of goods sold = sales - gross profit
=228692667-90996358 =137696309 %
Average inventory = opening + closing/2
=19134868+17747413/2 =18441140.5 %
2014; Cost of goods sold = sales - gross profit
=2062205987-77927187 =128278800 %
Average inventory = opening + closing/2
= 17317504+19134868/2 =137696309%
2015; Cost of goods sold = sales - gross profit
=200653482-77171364 =123482118
• Average inventory = opening + closing/2
= 18811794+17317504/2 =18064649
11. Ratio:years 2013 2014 2015
CGS 137696309 128278800 123482118
Average inventory 184411405 137696309 1806449
Inventory turnover ratio 7.47 times 7.04 times 6.84 times
Ratio: year 2013 2014 2015
Average inventory 18441140.5 18226186 18064649
C.G.S 137696309 128278800 123482118
*365
Inventory conversion
cycle
46 days 52 days 53 days
8-Inventory conversion cycle:
Inventory conversion cycle=avg inventory/cgs*365
12. 9- Creditors turnover ratios:
Creditors turnover ratios:= net credit purchases/avg creditors
Ratio:years 2013 2014 2015
Net credit purchases 136308854 130096164 135910814
Average credit 172615 12774204.5 7050997.5
account payable turnover ratio 7.89% 10.18% 19.28%
13. 10- Creditors payment period:
Ratio:years 2013 2014 2015
Avg creditors 17261527.5 12774204.5 7050997.5
Net credit period 136308854 130096164 135910814
* 365
Creditors payment period 76 days 36 days 19 days
Creditors payment period=avg creditors/net creditors*365
14.
Ratio: year 2013 2014 2015
Current ratio 111507281 110286950 86439402
Current liabilities 94513990 83258739 64473478
Liquidity ratio 0.12% 1.3% 1.34%
•Liquidity ratio:
1-Current ratio:
Current ratio=current asset/current liabilities
18. 2 Net profit ratio:
Net profit =net profit/net sales*100
Ratio: years 2013 2014 2015
net profit 33079653 22271022 22444636
net sales 228692661 206205987 200653482
*100
Net profit ratio 14.46% 10.80 % 11.19%
Ratio: years 2013 2014 2015
Operating profit 36785013 25025071 26413442
Net sales 228692667 206205987 200653482
* 100
Operating profit
ratio
16.08% 12.14% 13.16%
3 Operating profit:
Operating profit ratio = operating profit / net sales *100
19. Analysis of HTC company
•Liquidity ratio:
1-Current ratio:
Current ratio=current asset/current liabilities
Ratio: year 2013 2014 2015
Current assets 111507281 110286950 86439402
Current liabilities 94513990 83258739 64473478
Liquidity ratio 0.12% 1.3% 1.34%
21. 3-Cash ratio:
Cash ratio=cash/current liabilities
Ratio: years 2013 2014 2015
Cash 47098000 4762000 53243000
Current
Liabilities
48581000 48177000 54008000
Cash ratio 0.96% 0.98% 0.98%
22. Profitability ratios:
Ratio: years 2013 2014 2015
Gross profit 42270753 40755095 21953107
net sales 203402648 187911200 12184231
*100
Gross profit
ratio
21% 22% 18.4%
1 -Gross profit ratio:
Gross profit =gross profit/net sales*100
2-Net profit ratio:
Net profit =net profit/net sales*100
2013
Net profit=gross profit-operating expenses-interest-tax
=42270705753-46241275-0-1040128= (5010648)
2014
Net profit = gross profit-operating expenses-interest-tax
=(40755095-)-40086325-210714-0=458056
2015
Net profit = gross profit-operating expenses-interest-tax
=21953107-36156253-163252=(14366398)
23. NET PROFIT RATIO:
3 Operating profit:
Operating profit ratio = operating profit / net sales *100
Ratio: years 2013 2014 2015
net profit (5010648) 458056 (14366398)
net sales 203402648 187911200 1216842231
*100
Net profit ratio 2.4% 0.24% (12)
Ratio: years 2013 2014 2015
Operating profit (3970522) 668770 (14203146)
Net sales 203402648 187911200 121684231
* 100
Operating profit ratio 1.9%% 0.35% 11.6%
24. oTurnover ratio:
1 Account receivable ratio:
Account receivable debtor ratio= net credit sales /average account receivable
2013: Average account receivable=opening + closing/2
=19743763+23371172/2 =21557467.5
2014: Average account receivable=opening + closing/2
=23371172+29140284/2 =26255728
2015: Average account receivable=opening + closing/2
=291684231/18518948/2 =23829616
Ratio: years 2013 2014 2015
net credit sales 21557467.57 26255728 23829616
average account receivable 21557467.5 2625728 23829616
Account receivable debtor
ratio
9.43 times 7.15 times 5.10 times
25. 2 Debtor collection period:
Debtor collection period=average account receivable/net credit sales
*365 days
Ratio : year 2013 2014 2015
average account
receivable
21557467.5 26255728 23829616
net credit sales 203402648 187911200 121684231
*365
Debtor collection period 39 days 51 days 71 days
26. 3 -Total assets turnover ratio:
Total assets turnover ratio=sales/total assets
4. Fixed asset turnover
Fixed asset turnover = sales/fixed asset
RATIO;YEARS 2013 2014 2015
Sales 203406
48
187911200 12164231
total assets 172629
187
163838274 129393083
Total assets turnover ratio 1.17
times
1.14 times 0.9times
Ratio: years 2013 2014 2015
fixed assets 20340264 18711200 121684231
Sales 6112190 5355132 42953681
Fixed asset
turnover
3.3 times 3.50 times 2.8 times
27. 5.Inventory turnover ratio = CGS/average inventory
2013: Cost of goods sold = sales - gross profit
=203402448-42270753 =161131895%
Average inventory = opening + closing/2
=20521967+23599558/2 =44021525%
2014: Cost of goods sold = sales - gross profit
=118791100-40755095 =147156105%
Average inventory = opening + closing/2
= 23599558+17213060/2 =20406309%
2015; Cost of goods sold = sales - gross profit
=121684231-21953107 =99731124%
• Average inventory = opening + closing/2
= 172184231+19123637/2 =18168348.5%
Ratio: years 2013 2014 2015
CGS 161131895 147156105 99731124
Average inventory 44021525 20406309 181683
48.5
Inventory turnover ratio 2.00 7.21 5.4
28. 6-Inventory conversion cycle:
Inventory conversion cycle=average inventory/C.G.S*365
7- Creditors turnover ratios:
Creditors turnover ratios= net credit purchases/avg creditors
Ratio: year 2013 2014 2015
Average inventory 22060762.5 2046309 181683485
C.G.S 16113189 14715610 99731124
*365
Inventory conversion
cycle
49.9 days 50. days 66.4 days
Ratio: years 2013 2014 2015
Net credit purchases 1363088
54
13009616
4
135910814
Average credit 172615 12774204
.5
7050997.5
account payable
turnover ratio
7.89% 10.18% 19.28%
29. 8-creditors payment period=average creditors/net creditors*365
Ratio: years 2013 2014 2015
Average creditors 587517175 4503959 3670086
Net credit period 57890169 37896767 586481911
* 365
Creditors payment
period
37.4days 43.3days 22.8 days
31. Conclusion:
• Samsung Electronics,CO., Ltd., a part of SamsungGroup, is the world’s
largest technology by revenue.The company produces consumer
electronics, telecom equipment, semiconductors and home appliances.
the company is the world’s largest mobile phone and smartphones
vendors.it is largest memory chip maker and the largest tv manufacturer.
• The company’s overall position is at very good position.The company
achieves sufficient profit in past three years.The long-term society
position of the company is a very good than the HTC.The company
maintains low liquidity to achieve the high profitability.The company
distributes dividends every year to shareholders.
