Antecedents of Growth in Market Share of Samsung, a Financial Analysis

Abstract

In this case study researcher discussed about financial ratio analysis of Samsung by using the financial statements of Samsung. Also focused on industry and competitor analysis of Samsung. The objective of this paper is find the profitability, liquidity and financial position of the Samsung to check the impact of these determinants on the market share of Samsung. This paper discuss the relationships of the different items in financial statements by conducting ratio, time series, and DuPont analysis. Although Samsung have several segments but this paper concentrated on the telecommunication segment of the Samsung Electronics because it generate major portion of Samsung’s revenue.  To conduct this research the financial data of the Samsung up to 10 years is analyzed. The data is taken from the Annual Reports Samsung. Ratios are calculated for 10 years to check the trends in profitability, liquidity and return on equity.  The results of this analysis shows that Samsung’s liquidity is positive and growing trend. The earnings are positive and profitability has positive trend. Samsung is less leveraged. Further research can be conducted on the rising issue of Samsung and its effect on the performance of the firm. The limitation of the research case is that it only focused on the financial aspects of Samsung performance. This research will be helpful for the mangers of the Samsung to analyze the financial performance of the firm, for investors who want to in invest in the stocks of the Samsung and students of finance will also benefited from this paper for their better understanding financial analysis and its practical implication.

Keywords: Financial Analysis of Samsung, Liquidity Position, Profitability Position, Capital Structure and Operations Management.