Samsung Electronics Profitability Analysis
| SMSN Stock | USD 987.00 17.00 1.69% |
Net Income | First Reported 2010-12-31 | Previous Quarter 14.5 T | Current Value 27.6 T | Quarterly Volatility 10.3 T |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.29 | 0.2943 |
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| Net Profit Margin | 0.088 | 0.0559 |
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| Operating Profit Margin | 0.0241 | 0.0254 |
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| Pretax Profit Margin | 0.0371 | 0.0391 |
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| Return On Assets | 0.0302 | 0.0317 |
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| Return On Equity | 0.0389 | 0.041 |
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For Samsung Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Samsung Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Samsung Electronics Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Samsung Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Samsung Electronics Co over time as well as its relative position and ranking within its peers.
Samsung |
Samsung Electronics Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Samsung Electronics's current stock value. Our valuation model uses many indicators to compare Samsung Electronics value to that of its competitors to determine the firm's financial worth. Samsung Electronics Co is rated second in return on equity category among its peers. It also is rated second in return on asset category among its peers reporting about 0.22 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Samsung Electronics Co is roughly 4.63 . At this time, Samsung Electronics' Return On Equity is quite stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Samsung Electronics' earnings, one of the primary drivers of an investment's value.Samsung Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Samsung Electronics |
| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Samsung Electronics |
| = | 0.023 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Samsung Return On Asset Comparison
Samsung Electronics is currently under evaluation in return on asset category among its peers.
Samsung Electronics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Samsung Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Samsung Electronics will eventually generate negative long term returns. The profitability progress is the general direction of Samsung Electronics' change in net profit over the period of time. It can combine multiple indicators of Samsung Electronics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Net Interest Income | 3.4 T | 1.9 T | |
| Interest Income | 4.4 T | 2.7 T | |
| Operating Income | 6.6 T | 6.2 T | |
| Net Income From Continuing Ops | 15.5 T | 28.1 T | |
| Income Before Tax | 11 T | 10.5 T | |
| Net Income Applicable To Common Shares | 62.9 T | 41.6 T | |
| Net Income | 14.5 T | 27.6 T | |
| Income Tax Expense | -8.3 T | -7.9 T | |
| Change To Netincome | -13.2 T | -12.5 T | |
| Net Income Per Share | 2.1 K | 2.6 K | |
| Income Quality | 3.05 | 3.20 | |
| Net Income Per E B T | 1.43 | 1.50 |
Samsung Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Samsung Electronics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Samsung Electronics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Samsung Electronics' important profitability drivers and their relationship over time.
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Other Information on Investing in Samsung Stock
To fully project Samsung Electronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Samsung Electronics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Samsung Electronics' income statement, its balance sheet, and the statement of cash flows.