financal statements analysis Balance sheet analysis for Apple and Samsung
financal statements analysis
Balance sheet analysis for Apple and Samsung
What are each company’s largest assets?
Apple’s largest assets are long-term marketable securities, property, plant and equipment, and accounts receivable. The first largest asset, which is long-term marketable securities, was $130162M. Property and Equipment net was $20624M. The last largest assets accounts receivable was $ 17460M.
Samsung’s largest assets are: property, plant and equipment, short-term financial instruments, and Trade receivables. Samsung’s net property, plant and equipment was $76824309. Short-term financial instruments was $ 39602713, and trade receivables was $23458355.
Apple’s largest liabilities were accounts payable, long-term debt and accrued liabilities, and other non-current liabilities. For 2014 accounts payable was $30196M, and for 2013 it was $22367M. The second largest liability, which is long-term debt, was $28987M in 2014, and $16960M in 2013. Other non-current liabilities in 2014 was $24826M, and in 2013 $20208M.
On the other hand, Samsung’s largest liabilities were other payables, short-term borrowings, and trade and other payables. In 2014, Other payables was $9801850 and in 2013 was $8736170. Short-term borrowings in 2014 is $7627338, and $6116194 in 2013. The last largest liability was trade and other payables, which was $7518480 in 2014, and $8014761 in 2013.
What proportion of total assets is financed by owners?
The proportion of total asset is financed by owners for Apple is 48.11%, and for Samsung is 72.95%.
What proportion of total assets is financed by non-owners?
On the other hand, the proportion of total asset financed by non-owners is for Apple 51.89% and for Samsung 27.05%.
Income statement analysisfor Apple and Samsung
What are the company’s major expenses?
Apple’s cost of sales is the major expenses of Apple. In 2014 cost of sales were $112258M 61.41% of sales, and in 2013 were $ 106606M 62.38% of sales.
Also Samsung has the cost of sales as its major expenses that are related buying and occupancy costs. In 2014, the cost of sales for Samsung were $121856939, which is 62.21% of sales, and in 2013 $130802991 that’s equal to 60.21% of sales.
Are there any unusual or discontinued items?
Was each company more or less profitable when compared to the prior year?
Apple’s profit margin in 2014 increased by 0.97% from the prior year. Samsung’s profit margin decreased by 2%.
Which company is more profitable?
Apple is more profitable than Samsung in both years 2014-13. Apple’s profit margin ratio in 2014 was 21.61%, and in 2013 was 21.67%. Samsung’s profit margin ratio in 2014 was 11.35%, and in 2013 was 13.33%.
Statement of Cash Flow Analysis for Apple and Samsung
What were the company’s cash flow from operation? Were they positive?
Net cash provided by operating activities was positive for Apple in all two years of the most recent 10 K Statement of Cash Flows.
Samsung’s net cash provided by operating activities was also positive for in all two years of the most recent 10 K Statement of Cash Flows.
$35124337 $ 51446552
Were Operating CF smaller or larger than net income?
Cash flow from operating was larger than the net income for Apple in all two years in this 10K as illustrated below.
Cash flow from operating was also larger than the net income for Samsung in all the two years in this 10K as illustrated below.
What are the major differences between operating cash and net income?
Did the company purchase new property and equipment (capital expenditure) during the year?
Did the company issue new debt during the year or was debt repaid?
Did the company issue new stock?
Did the company pay dividends?
Market Capitalization for Apple and Samsung
Determine the market capitalization at the most recent year-end for each company. We should be able to determine the number of shares outstanding from the balance sheet. Recall that shares outstanding is total shares issued less any treasury shares. We can obtain the yearend stock price from an investment website such as Seeking Alpha or Yahoo Finance.
Compare market value to the book value (total equity) of the company. Calculate and compare the companies’ market-to-book ratios.
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
2014 Vertical 2013 Vertical
Cash flow from operating activities
Profit for the yeat $22,223,194.00 63.27% $28,949,145.00 56.27%
Adjustments 21,206,200 60.37% 22,613,120 43.95%
Change in operating activies -3,645,042 -10.38% -1,247,502 -2.42%
Cash flows from operating activities 39,784,352 113.27% 50,314,763 97.80%
Interest received 1,477,508 4.21% 982,306 1.91%
Interest paid -440,524 -1.25% -413,087 -0.80%
Dividend received 1,420,783 4.05% 562,570 1.09%
Income tax paid -7,117,782 -20.26% -7,077,368 -13.76%
Net cash generated from operating activies 35,124,337 100.00% 51,446,552 100.00%
Cash flows from investing activities
Net increase in short-term financial instruments -1,055,231 3.39% -18,420,863 43.34%
Net decrease (increase) in short-term available-for-sale financial assets -677,735 2.17% 31,978 -0.08%
Proceeds from disposal of long-term available-for-sale financial assets 192,746 -0.62% 1,606,785 -3.78%
Acquisition of long-term available-for- sale financial assets -5,901,113 18.94% -1,454,694 3.42%
Proceeds from disposal of associates and joint ventures 1,913,584 -6.14% 228 0.00%
Acquisition of associates and joint ventures -683,766 2.19% -172,230 0.41%
Disposal of property, plant and equipment 366,306 -1.18% 358,549 -0.84%
Purchases of property, plant and equipment -20,939,435 67.19% -21,998,278 51.75%
Disposal of intangible assets 30,142 -0.10% 4,334 -0.01%
Purchases of intangible assets -1,258,010 4.04% -887,948 2.09%
Cash outflows from business combination -167,783 0.54% -158,787 0.37%
Others -2,983,767 9.57% -1,415,979 3.33%
Net cash used in investing activities -31,164,062 100.00% -42,506,905 100.00%
Cash flows from financing activities
Net increase(decrease) in short-term 1,741,635 -59.97% -1,768,344 45.00%
Acquisition of treasury stock -1,068,986 36.81% – #VALUE!
Disposal of treasury stock 26,201 -0.90% 32,668 -0.83%
Proceeds from long-term borrowingsand debentures 1,653,437 -56.94% 25,337 -0.64%
Repayment of long-term borrowings and debentures -3,134,412 107.93% -1,299,930 33.08%
Payment of dividends -2,122,072 73.07% -1,187,111 30.21%
Net increase in non-controlling interests 132 0.00% 267,456 -6.81%
Net cash used in financing activities -2,904,065 100.00% -3,929,924 100.00%
Effect of exchange rate changes on cash and cash equivalents -528,153 -2,381,191
Cash and cash equivalents
Beginning of the year 15,469,535 17,850,726
End of the year 15,997,688 15,469,535