Acc 561 Week 2 Financial Statement Analysis

In: Business and Management

Submitted By navydoc79
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Financial Statement Analysis
NAME
ACC/561 Accounting
DATE
University of Phoenix
PROFESSOR

Introduction

Samsung – International Manufacturing Company
Samsung served as the manufacturing industry and international company analyzed. Samsung has been in business for over 70 years and manufactures products for diverse markets, including: digital media, high -tech electronics, home appliances, information technology and telecommunication. Samsung's motto is to "inspire the world and create the future" by leveraging three key strengths: new technology, innovative products and creative solutions.
| Samsung | Wells Fargo | AT&T |
Current Ratio | 1.4101 | 1.1500 | 1.6467 |
Debt to Equity Ratio | 0.6768 | 9.8100 | 0.9675 |
Profitability Ratio | 0.2881 | 2.3500 | 0.3069 |
Return on Sales | 0.0736 | 2.0900 | 0.9563 |
Dupont Ratio | 0.1200 | 0.6900 | 0.3496 |
Financial Leverage | 1.1317 | 1.3500 | 1.0724 |
Total Asset Turnover | 2.5035 | 0.0100 | 0.9003 |

When you compare Samsung to AT&T, the retail sales company we profiled, Samsung has a lower current ratio by 20%. Samsung's debt to equity ratio is almost 30% lower than AT&T. Samsung's profitability ratio is very similar to AT&T, though 2% lower. Samsung's return on sales is comparable to AT&T, thought slightly lower. AT&T is much strong on return on equity, with almost 3X the Dupont ratio of Samsung. Samsung's financial leverage is slightly higher than AT&T. The key strength of Samsung over AT&T's financial performance is the total asset turnover which is almost 3X that of AT&T. Samsung's focus on lean manufacturing and supply chain management enable the company to perform so strongly in this area.
When you compare Samsung to Wells Fargo, the services industry company we profiled, Samsung has a higher current ratio by more than 20%. Samsung also…...

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