ACOJIDO, Allen Joshua G FMT101

AC1B March 26, 2020

COMPANY: Samsung Electronics Co., Ltd. and its subsidiaries for.

SAMSUNG’S LIQUIDITY

By using current ratio to measure its liquidity, their current assets amount to
$155,634,050 and they have $54,727,544 as their current liabilities, we will get 2.84 which
means that the company's ability to pay short-term obligations or those due within one year by
using its current assets

SAMSUNG’S PROFITABILITY

It can be measured by using the gross profit ratio, It can be calculated with the use of its
gross profit which is $71,354,943 divided by net sales which is $197,690,938. And then we will
get the gross profit rate of Samsung which is 36.09%. This result indicates that Samsung has a
high ratio in terms of its profitability as higher ratio in profitability is always preferred in
business.

SAMSUNG’S SOLVENCY

We can use the debt ratio by the use of their total liabilities of $76,951,655 over their
total assets which is $302,511,023. Then we get the result of 25.44% means that 25.44% of the
company’s assets are funded by debt. This low ratio is a good sign because there's a low risk that
the business will not generate enough cash flow to service its debt.

SAMSUNG’S ACTIVITY RATIO

By using the ratio total asset turnover, this ratio will be calculated as the Net sales
which is $71,354,943 to be divided by the average total assets which is $296,844,911.5 and
we will get the total asset turnover ratio which is equal to 24.04% which means that they have
low return on asset. The higher the asset turnover ratio, the better the company is performing,
since higher ratios imply that the company is generating more revenue per dollar of assets.

Reference:

https://images.samsung.com/is/content/samsung/p5/global/ir/docs/2019_con_quarter04_all.pdf