FINANCIAL STATEMENT ANALYSIS of the company Samsung Samsung Electronics Co., Ltd. and its subsidiaries

An item on a financial statement has little meaning by itself. The meaning of the numbers can be enhanced by drawing comparisons using:

1.Dollar and percentage changes on statements(Horizontal analysis (or trend analysis) shows the changes between years in the financial data in both dollar and percentage form. Quantifying dollar changes over time serves to highlight the changes that are the most important economically Quantifying percentage changes over time serves to highlight the changes that are the most unusual.

2.Common-size statements

3.Ratios

managers should also look beyond the ratios like technology changes, industry trends,changes within the company,consumer tastes and economics factors

for samsung focus on number 2

Vertical analysis focuses on the relationships among financial statement items at a given point in time.

A common-size financial statement is a vertical analysis in which each financial statement item is expressed as a percentage.In balance sheets, all items usually are expressed as a percentage of total assets. In income statements, all items usually are expressed as a percentage of sales.

please note that sales is usually the base and is expressed as 100% so what conclusions can we draw

push further for samsung inc

Common-Size Statements - Part 6