Samsung group, headquartered in Samsung Town, Seoul, is the largest South Korean business conglomerate with numerous subsidiaries and affiliated businesses united under the Samsung Brand. The company was founded as a trading company by Lee Byung-chul in 1938. After the death of its founder in 1987, the company was separated into four groups: Samsung Group, CJ Group, Shinsegae Group and Hansol Group. The important subsidiaries of Samsung includes: Samsung Electronics (largest IT company in the world in 2012, in terms of revenue and 4th by market value), Samsung Heavy Industries (second largest shipbuilder in the world in 2010 by revenue), Samsung Engineering (world’s 13th largest construction company) and Samsung C&T (world’s 36th largest construction company). Other notable subsidiaries worth mention are Cheil Worldwide (16th largest advertising agency in the world by revenue, 2011), Samsung Life Insurance (14th-largest life insurance company in the world) and Samsung Techwin (an aerospace, defense and surveillance company).The company has a powerful influence on South Korea’s politics, economic development, culture and media, and has a great contribution behind the “Miracle on the Han River (South Korea’s postwar export-fueled economic growth).

Samsung Electronics Co. Ltd., the flagship company of the group, is engaged in mobile communications, consumer electronics, information technology and device solutions businesses worldwide. The company is synonymous to reliable, innovative products and unfailing services by talented people. This is evident from its constant picture of growth revealed by Samsung Mobile’s Annual Report 2013, Annual Sales, Annual Revenue, Annual Profits and Quarterly Earnings statements.

Here is a synopsis of few recent key financial facts of the company:

Profitability Profit Margin (TTM) 13.06 %
  Operating Margin (TTM) 16.53 %
Management Effectiveness Return on Assets 12.02 %
  Return on Equity (TTM) 23.15 %
Income Statement Revenue (TTM) $202.93 Billion
  Revenue Per Share (TTM) $1392.29
  Quarterly Revenue Growth (YOY): 13.20 %
  Quarterly Earnings Growth (YOY) 25.30 %
  Gross Profit (TTM) N/A
Balance Sheet Current Ratio (Most recent Quarter) 2.03
  Book Value Per Share (Most recent Quarter)                                             $830.39

MRQ = Most Recent Quarter (as of Sep 30, 2013)
TTM = Trailing Twelve Months (as of Sep 30, 2013)
YOY = Year Over Year (as of Sep 30, 2013)

 

Samsung Electronics Co. Ltd. has been able to grow revenues from $155,481.2 million to $189,499.9 million, a corresponding increase in the Gross Profit rate from 32.03% to 37.02%. The ratios on Selling General & Administrative Expenses to sales revenue for these two periods were 16.11% and 16.44%. This indicates a healthy business structure.

Currency in US Dollar (In millions) Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Revenues 189,499.9 155,481.2 145,708.2 128,457.8
Total Revenues 189,499.9 155,481.2 145,708.2 128,457.8
Cost Of Goods Sold 119,344.1 105,674.3 96,742.9 89,136.7
Gross Profit 70,155.8 49,806.8 48,965.2 39,321.1
Total Selling General & Admin Expenses 31,165.2 25,054.4 24,728.9 22,014.1
R&D Expenses 10,867.4 9,380.8 8,574.3 6,960.5
Total Depreciation & Amortization 750.1 630.0
Other Operating Expenses -251.5 58.7
Total Other Operating Expenses 42,782.6 35,065.2 33,051.7 29,033.3
Operating Income 27,373.2 14,741.6 15,913.5 10,287.8
Interest Expense -564.4 -607.0 -547.6 -504.4
Interest And Investment Income 896.7 697.4 556.8 366.7
Net Interest Expense 332.3 90.4 9.3 -137.7
Income (Loss) On Equity Investments 929.7 1,318.5 2,136.3 1,614.4
Currency Exchange Gains (Loss) -135.6 -626.5 -169.3 -175.7
Other Non-Operating Income (Expenses) 238.8 -272.4 -30.5 -81.2
EBT, Excluding Unusual Items 28,738.4 15,251.6 17,859.3 11,507.5
Impairment Of Goodwill -192.9 -172.6 -145.1
Gain (Loss) On Sale Of Investments 24.8 210.6 388.8 42.4
Gain (Loss) On Sale Of Assets -167.1 1,005.6 175.5 -61.8
Total Other Unusual Items -214.2 -95.3 -65.2
EBT, Including Unusual Items 28,188.9 16,199.9 18,213.4 11,488.1
Income Tax Expense 5,719.5 3,234.8 2,998.5 2,290.8
Minority Interest In Earnings -621.8 -354.7 -327.4 -178.0
Earnings From Continuing Operations 22,469.4 12,965.1 15,214.9 9,197.4
Net Income 21,847.6 12,610.5 14,887.4 9,019.3
Net Income To Common Including Extra Items 18,968.5 10,943.2 12,912.0 7,809.5
Net Income To Common Excluding Extra Items 18,968.5 10,943.2 12,912.0 7,809.5

 

In the last four quarter ending results, the company has shown its ability to deliver a consistent marketability to generate regular surpluses from operation. The Gross Profit percentages during this period were regular: Q1= 38.36%; Q2= 40.65%; Q3= 40.24% ; & Q4= 39.89%. Furthermore, Samsung Electronics Co. Ltd. has been able to reduce Selling General & Administrative Expenses from 17.08% to 16.06% in the last quarter (between Q3 and Q4).

Currency in US Dollar (In millions) Sep 30, 2013

Q4

Jun 30, 2013

Q3

Mar 31, 2013

Q2

Dec 31, 2012

Q1

Revenues 55,698.0 54,167.5 49,838.8 52,846.7
Total Revenues 55,698.0 54,167.5 49,838.8 52,846.7
Cost Of Goods Sold 33,491.9 32,372.3 29,581.3 32,572.9
Gross Profit 22,206.1 21,795.2 20,257.4 20,273.8
Total Selling General & Admin Expenses 8,947.0 9,250.3 8,629.1 8,228.2
R&D Expenses 3,449.9 3,338.3 3,134.6 2,786.5
Total Depreciation & Amortization 228.0 224.9 217.4 750.4
Other Operating Expenses 552.8
Total Other Operating Expenses 12,624.9 12,811.3 11,981.0 12,317.9
Operating Income 9,581.2 8,983.9 8,276.4 7,955.9
Interest Expense -124.8 -216.1 -24.2 -130.7
Interest And Investment Income 350.4 259.1 290.0 261.1
Net Interest Expense 225.7 43.0 265.8 130.4
Income (Loss) On Equity Investments 141.1 198.0 167.7 205.5
Currency Exchange Gains (Loss) -215.6 -137.5 97.2 -10.9
Other Non-Operating Income (Expenses) -121.1 187.3 -241.5 328.6
EBT, Excluding Unusual Items 9,611.3 9,277.6 8,590.0 8,609.5
Impairment Of Goodwill -193.0
Gain (Loss) On Sale Of Investments 10.2 7.9 8.8 -73.5
Gain (Loss) On Sale Of Assets 31.0 -20.8 -47.4 -85.2
Total Other Unusual Items -24.3 -214.3
EBT, Including Unusual Items 9,652.5 9,257.3 8,527.1 8,043.4
Income Tax Expense 1,880.1 1,932.5 1,782.2 1,408.2
Minority Interest In Earnings -184.0 -167.8 -177.1
Earnings From Continuing Operations 7,772.3 7,324.8 6,745.0 6,635.2
Net Income 7,588.3 7,324.8 6,577.1 6,458.0
Net Income To Common Including Extra Items 7,588.3 8,007.5 5,710.6 5,607.9
Net Income To Common Excluding Extra Items 7,588.3 8,007.5 5,710.6 5,607.9

 

The table below shows the difference measures of financial performances for last four financial years and the performance for last twelve months ending September 30, 2013. The measures on different scales shown below also confirm a consistent improvement in the activities of Samsung Electronics Co. Ltd.

Financials (in South Korean Won) TTM Dec 2012 Dec 2011 Dec 2010 Dec 2009
Revenue KRW Mil

218,568,660

201,103,613

165,001,771

154,630,328

136,323,670

Gross Margin %

39.5

37.0

32.0

33.6

30.6

Operating Income KRW Mil

35,208,762

29,049,338

16,249,717

17,296,536

10,925,259

Operating Margin %

16.1

14.4

9.8

11.2

8.0

Net Income KRW Mil

27,827,373

23,185,375

13,734,067

15,799,035

9,571,598

Earnings Per Share KRW

207966.43

153950.00

88990.00

105672.01

64585.99

Dividends KRW

7500.00

8000.00

5500.00

5000.00

8000.00

Payout Ratio %

3.4

4.4

6.2

4.7

Shares Mil

131

131

130

130

128

Book Value Per Share USD

994.60

855.98

670.40

607.71

Profitability          
Tax Rate %

20.10

20.29

19.96

16.46

19.94

Net Margin %

12.45

11.53

8.32

10.22

7.02

Asset Turnover (Average)

1.18

1.19

1.14

1.25

1.25

Return on Assets %

14.71

13.77

9.47

12.82

8.80

Financial Leverage (Average)

1.47

1.49

1.53

1.51

1.54

Return on Equity %

21.91

20.80

14.40

19.52

14.13

Return on Invested Capital %

20.92

19.68

13.43

18.62

12.78

Interest Coverage

123.79

108.80

27.64

34.26

23.78