Samsung

Profile: (Intro)
Samsung Electronics Co was merged by the laws of the Republic of Korea in 1969 and listed
its shares on the Korea Stock Exchange in 1975. It runs 4 business divisions: Consumer
Electronics, Information technology & Mobile communications, Device Solutions and
Harman. Samsung applies the equity method of accounting for its 41 associates, with
Samsung Electro-Mechanics. Samsung Electronics provides advanced products and
experiences that maximize user convenience and make consumers’ lives better.
In addition, Samsung keeps investing in modernising products and supply methods for
their high-growth, high-profit B2B business, maintaining their market leadership position
with premium, innovative products.

Focus: Throughout this financial analysis, we decided to compare Samsung’s financial

position from 2016 to 2017, using graphs, charts and yearly reports.

Vision:
Samsung’s Vision 2020 to improve the world’s experience using advanced technology
and products and optimal operation.
The goal of the vision is to further become a beloved brand, an innovative company, and
an admired company, welcoming new challenges and opportunities.
Mission:
The mission is to inspire the world with ground-breaking technologies, goods and designs
that develop people’s lives and help creating a new future.

REVENUES/SALES
In 2017, Samsung had a total revenue of huge total
earnings of $211,811,887. This implies a slight

increase in comparison with 2016

($178,473,168) in operating profit. Profits from the sale of OLED and LCD
panels were down, but not enough to affect the overall strong performance. With the
imminent release of the Galaxy S9 and S9+, Samsung should expect to continue the
good form in Q1 2018.

CASH

Cash and Cash Equivalents, including cash on had, deposits held at call with banks, and other
short term highly liquid investments. They are convertable to cash. The total cash decreased
from 2016 ($30,545,130) to 2017 ($32,111,442) which implies the decrease of the liquidity.
On the other hand, Samsung keeps earning cash being main distributors for Apple.
Samsung is the only company that can make the OLED displays, NAND
flash, and DRAM chip in the quantities that Apple needs for its iPhones,
which are the main revenue driver for Apple.
LIABILITIES:

There in a huge noticable increase from 2016 ($48,364,643) to 2017 ($59,390,443),

mainly because of the Galaxy Note 7. Samsung issued a statement asking
all carrier and retail partners around the globe to discontinue
sales and exchanges of the Galaxy Note7.[1] This statement
comes after Samsung initially recalled 2.5 million Note7 devices
in early September following various reports of the phones
catching fire.[2] However, just as Samsung was under the
impression that the defect was cured, incidents of the product
catching fire continued despite the issuance of replacement
Samsung is being sued over a
devices.

Note 7 that allegedly burned a man,

which also caused negative publicity.
However, the company was able to
recover and almost double the profit.
ASSETS:
Reports had shown that assets are stable, showing a slight increase in comparison with 2016, with a
total assets of $266,783,176 in 2017. The value of the Samsung‘s total assets in 2017
soared 15.1 percent compared to that of the previous year. Its value of tangible
assets, including machines and properties, came to 111.7 trillion won. The yearly net
profit came to 42.2 trillion won, but its liquid assets like cash dropped. The tech giant
held 83.6 trillion won in cash in 2017, down 5.2 percent from the previous year.
Samsung ranked no. 1 among private companies in Korea, except financial firms like
banks, to see its total assets value cross 300-trillion-won threshold. In the
comparison of 2016, the firm’s total assets value was grown 15.1% in 2017. Its value
of assets, including machines and properties, came to 111.7 trillion won.

EQUITY:

Furthermore, we can draw attention to total equity ($189,634,824) which also increased from
2016 ($170,601,273).

Net Income
Net income was 39.34 billion U.S. dollars in 2017. All the figures were the
biggest ever recorded by Samsung in the company's 80-year history.

Profit

Their profit nearly doubled from 2017 ($37,297,884) to 2016 ($20,092,451). Which implies
that the previous analysis related to increase in liability didn’t affect the overall financial state
of the company, showing that it didn’t necessarily have a negative meaning.

Cash Flow
Conclusion

As it can be noticed in the analyses from

above, even though their Liabilities increased
due to the Galaxy Note 7 issue, Samsung did
an excellent job getting back on track and
doubling their profit and having the biggest ever
recorded net income in the company's 80-year history. According to the
resolution of the Board of Directors on October 31, 2017, the Company repurchased 0.89
million shares at a cost of $2,228,135 million from November 1, 2017 to January 26, 2018.
The Company expects to issue 6,419,324,700 ordinary shares and 903,620,000 preference
shares, which can further anticipate an increase in their profits in even in 2018.