Compare Samsung and Apple Ratios to the industry (peer) averages and comment on
ID: 2483511 • Letter: C
Question
Compare Samsung and Apple Ratios to the industry (peer) averages and comment on how they stand when you benchmark the results. What does this activity teach you?
Company Name
Total Asset Turnover - 2014
Net Profit Margin % - 2014
ROE % (Net) - 2014
ROA % (Net) - 2014
Total Debt to Equity - 2014
Interest Coverage - 2014
Inventory Turnover - 2014
Current Ratio - 2014
Peer Avr: 1.16
Peer Avr: 7.44
Peer Avr: 17.24
Peer Avr: 6.89
Peer Avr: 0.16
Peer Avr: 3243.48
Peer Avr: 14.55
Peer Avr: 1.34
Apple Inc
0.84
21.61
33.7
18.06
0.32
-
57.94
1.08
Samsung Electronics Co., Ltd.
0.93
11.19
15.06
10.39
0
-
7.04
2.21
Company Name
Total Asset Turnover - 2014
Net Profit Margin % - 2014
ROE % (Net) - 2014
ROA % (Net) - 2014
Total Debt to Equity - 2014
Interest Coverage - 2014
Inventory Turnover - 2014
Current Ratio - 2014
Peer Avr: 1.16
Peer Avr: 7.44
Peer Avr: 17.24
Peer Avr: 6.89
Peer Avr: 0.16
Peer Avr: 3243.48
Peer Avr: 14.55
Peer Avr: 1.34
Apple Inc
0.84
21.61
33.7
18.06
0.32
-
57.94
1.08
Samsung Electronics Co., Ltd.
0.93
11.19
15.06
10.39
0
-
7.04
2.21
Explanation / Answer
Following are the key learning points:
A. Samsung do not have the interest burden or the debt free company still its ROE is lower than the peer average as well as Apple Inc.
B. Samsung Electronics have poor performance as compare to the Peer average and Apple Inc.
C. In Apple Inc. there seems to be liquidity problem as the Inventory turnover ratio is very high and the current ratio is very low. Apple Inc needs to take urgent measures to liquidate the stock.
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