Essay on Dupont System Analysis

2452 Words Oct 26th, 2012 10 Pages
Individual Assignment
Ratio Analysis of SAMSUNG ELECTRONICS
Full name: Cao Thi Thanh Huyen
Class: FB0603
ID Number: FB00038

DuPont Analysis of SAMSUNG 2009
( in thousands of US dollars)

Income Statement
Balance Sheet
Dupont Ratio

Sales
$

ROE
ROA

119,697,664
-

Income Statement

Cost of Goods sold
$

83,058,093

Net profit after taxes $

6,252,868

divided by

Operating Expense
$

Net Profit Margin

27,782,143

Interest Expense
$
470,003

5.22%

$

Sales
119,697,664

Tax Expense
$

2,134,557

multiplied by

Return on Assets (ROA)
6.35%

Sales
$

119,697,664

Current Assets
$

Total Asset Turnover divided by

47,599,699

1.22

+

Balance Sheet

Net
…show more content…
Samsung Electronics
2010
7.62%
1.15
8.77%
1.54

9.75%

2011
5.92%
1.06
6.27%

1.50

1.53

13.18%

Apple. Inc
2011
23.56%
0.93
21.92%

9.59%

1.52
33.29%

Ratio Analysis for Samsung electronics in three consecutive years.

From 2009 to 2011, net profit margin of Samsung Electronics experienced a remarkable change.
As can be seen clearly from the table, 2009 seemed to be the gloomiest year for Samsung Electronics when this ratio was the least. In fact, it was, Samsung experienced the most severe loss as an inevitable trend in 2009 after posting its first loss ever in the first quarter of the year.
To be more specific, sales at Samsung- the world biggest manufacturer of memory chips and liquid crystal displays- plummeted dramatically, reported an operating loss of $674 million for the October- December period, more than twice expected by economic specialists. Revenues of chips division declined by 18% from June- September quarter, and LCD sales fell 12%.The reasons, in my opinion, can be easily found out, because of no improvement in the

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