Compare Samsung and Apple Ratios to the industry (peer) averages and comment on
ID: 2483535 • Letter: C
Question
Compare Samsung and Apple Ratios to the industry (peer) averages and comment on how they stand when you benchmark the results?
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
Total asset turnover - 2014 The peer average is higher than either Apple Inc and Samsung which signifies that the asset utilization of these two companies should improve . The average of Samsung is higher and better than Apple Net profit Margin The net profit margin of both Apple and Samsung is far higher than the peer avaerage , which signifies that both these companies are doing far better than the industry Among the two Apple Inc is far ahead in its Net profit margin than Samsung ROE The ROE of Apple inc is better than the peer average which menas that the return on equity Is healthier for Apple, whereas ROE for Samsung is lower than the peer average which means that SAMSUNG is not doing as well in this regard as compared to their peers ROA Both the comapinies are performing better than the peer average which signifies their healthy financials Total debt to equity Apple Inc ratio is higher than the peer avergae which means that their debt to equity ratio is not very healthy as compared to the industry average but on the other hand Samsung ratio is 0 which means that Samsung has no debt / liability Interest Coverage Both Apple and Samsung have no interest coverage , which means that no inteerest nbearing loans have been taken by these companies which means that npth these companies are caash rich companies as compared to the industry average Inventory turnover Apple Inc ratio is higher than the industry average which means that Apple inc is managing its inventory better than the industry average but Samsung ratio is lower than the industry which means that management of inventory by Samsung is not very healthy Current Ratio The Apple Inc ratio is almost simila to the peer average but the SAMSUNG average is the helathier one and is more towards the ideal situation
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