Financial Analysis of Samsung

Financial Analysis of SamsungIn todays era of digital on that point ar companies drifted towards the digital technology. The fraternity Samsung has made his berth in the market by themselves and now days prize as the close innovative and good quality brand in the sector of electronic industry. The Samsung follow the policy of we will devote out human resources and technologies to give superior products and services thereby contributing a better spheric society. In this assignment there is financial summary of the Samsung connection in relation to the kick the bucket five course of studys summary. The various aspects be discussed critically in this assignment work. In addition to this there is comparing of the Samsung Company with respect to the Nokia Company a big rival of the Samsung Company in the market. in that location is comparison of the financial positions of two of the companies to make the differentiation amongst their strategies so they in future they can be benefited by this. admittance to Samsung CompanyThe Samsung Company is famous telephoner in the area of electronic industry. This union was established in 1969 in Taegu, Korea. The founder of this confederacy was Byung Chull Lee. At the very first time the connection has started business with the manufacturing of Black and washrag TVs. At the early degree of time the company was at the calm down growth and after the end of course of study 2004 the company has got about the exchange of 52 billion and has assets about 38 Billion. At this time the company had employed approximately 113 thousand at the global. In this category the company got the free-enterprise(a) advantage to a fault as it go ahead to its competitive rivals like Kodak, Philips, and Panasonic etc. (Barney and Hesterly, 2008, PC-2 -1). At that time the company involved in the manufacturing of TVs, Computers and Av equipments, Mobile Phones, Networking Equipments, LCD Screens, Notebook computers, Laptop s, HDTVs , Washing Machines and other electronic equipments etc. (Barney and Hesterly, 2008, PC-2 -6). According to the company the success they achieved is purely depend on their contribution that how they manage their company in an effective way by considering the things like contribution to society and mutual prosperity at the worldwide level among the people. The chairman of the company has told that the group of Samsung always guide their employees to upchuck emphasise eitherplace the efficiency and design of the products. Under the observation of the dinner dress chairman the company able to attain the leading position in the electronic market (Barney and Hesterly, 2008, PC-2 -6). In relation to this the below diagram has shown the organisational body structure of the company.Financial Analysis of the Company (Samsung)The Samsung is lapsed to grow and gain arrive at in the market at high rate. From the financial story of the coda five grades of the company has clearly showed that how the company is on the raceway of the progress. From year 2005 to 2010 there is increase in the net hit of the company. For the year 2005 the company has gained the take in with 31 % but in the next year it was decreased by 1 % and become 30% then for the glide slope consecutive geezerhood there is decrease as that was recession period but still in recession it made the profit of 28% in both 2007 and 2008. For the further cash advance in next year of 2009 there is hit gross profit is by 33.5 % and fro the next and model year of 2010 the company has the highest profit of 35.3 % as a gross profit of the company. From the financial statement given in the appendixes it is clear that the company has got the improvement in last five years. Till year 2010 there is total assets of the company are 125,677 billion as Korean KRW.Source http//www.corporateinformation.com/Company-Snapshot.aspx?cusip=C410P0400 ratio Analysis of the company SamsungThe following hold oer sh ow the ratios for the company over last five years. The different ratios find in the table are ROE in which there are ratios of Profitability, assets turnover ratio and leverages are included and there is average ration of ROE is given. For the next there is Debt/ integrity ratio for the five years followed by the Net debt/equity ratio and in the last column there is total earnings per share are given.The ratios are calculated from the balance sheet and income statements for the last five years of the company. The ratios calculated are shown in the following table for the years 2005-2010.Introduction to NokiaThe company Nokia has started in year 1856 at the banks of Nokianvirta River. The company at that time is major force in the industry. After that it undergoes nuclear fusion reaction with Cable Company to enter into the market of electronic by the design of Nokia Corporation. The new company successfully entered into the market and play a pioneering piece in the area of mob ile communications. Due to the globalisation the company soon grow at fast pace and there is good position attained by the company. The most strategic decision taken by the company was in 1992 that to concentrate on the telecommunication business only.At present the Nokia Corporationis engaged in the business of communication and manufacturing of the mobile. This company is at the derive one position in the market. The company had over 123000 employees at present working in the company. The company has its roots in 120 countries of the world. The annual sale of the company is 41 Euro billion and has profit about 1.2 euro Billion as on the year of 2009. This company is recognised as the worlds largest manufacturer of mobile phones and raze it provides the navigation system too in addition. The market shares of the company was 30% of the global market in the third quarter of year 2010 operating profit of 1.2 billion as of 2009. It is the worlds largest manufacturer ofmobile telepho nes its global devicemarket sharewas 30% in the third quarter 2010, but this value is less than to year 2009 when it was 34 %. The Nokia is continuing to growing by introducing advance technology fit in to the global needs of the society and market.Financial digest of NokiaFor the financial abridgment of Nokia there is consideration of the annual statements for the last five years of Nokia and similarly there is consideration of the balance sheet of the Nokia for the last five years from 2005- 2009. The following table is formulated for the explanation purpose to analyse the financial position of the company.Ration Analysis of NokiaThe following table shows the ratio analysis of the company on the bases of above table which represents the overall financial statement of the company.From above table of ratios it has been seen that there is deterioration in the ROE ratios from 2007 to 2008 and from 2008 to 2009. There is also deterioration in the ROA ratio with the same pace.Compar ison of Nokia and SamsungThe both companies are reputed companies in the mobile sector. The Nokia is leading than the Samsung Company. At present the nokia is number one company but there is deterioration in the gross revenue of the company and even in the ratios of the company if it continues it will be severe for the company to compete with its rivals. On the other hand the company Samsung is continue to grow. There is continue growth has seen in the company. As from the financial analysis of the company and the ratios calculated it has seen that at present the company has raised itself from the fifteenth position to the fifth position and this is milestone in the history of telecommunication industry. The company is continuing on this track to progress.The following presentation shows the comparison between these two companies.Nokia 2009Samsung 2009Position in Market1st5thOperating income( 1716)8973Net profit0.63 %15.4%From above table it is clear that Samsung is making profit re gularly. On the other hand there is continues deterioration in the Nokia from last four consecutive years.VendorConclusionFrom the above authorship it is concluded that the financial analysis is very important for the companies in every field. This is useful in find out the level of company and except this is useful in having comparison with the other companies so that for the future eudaemonia possible steps should be taken. The financial analysis make the company knows about the finance they have to spend and where they need to spend this. This even gives the evaluation for the profit and loss for the company.