Question

BTN 15-9 Samsung, Apple, and Google are competitors in the global marketplace. Following are selected data from each company.

Key Figure	Samsung (Korean won millions)				Apple			Google
	Current Year	One Year Prior	Two Years Prior		Current Year	Prior Year		Current Year	Prior Year
Net income	₩ 19,060,144	₩ 23,394,358	₩ 30,474,764		—	—		—	—
Net sales	200,653,482	206,205,987	228,692,667		—	—		—	—
Total assets	242,179,521	230,422,958	214,075,018		—	—		—	—
Profit margin	?	?	—		22.8%	21.6%		21.8%	21.4%
Total asset turnover	?	?	—		0.89	0.83		0.54	0.55

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Required

Compute Samsung’s return on total assets, and its components of profit margin and total asset turnover, for the most recent two years using the data provided.

Which of these three companies has the highest return on total assets? Highest profit margin? Highest total asset turnover? Interpret these results for the (a) current year and (b) prior year.

Answer 1

Key Figure	Samsung (Korean won millions)				Apple			Google
	Current	One Year	Two Years		Current	Prior		Current	Prior
	Year	Prior	Prior		Year	Year		Year	Year
Net income	1,90,60,144	2,33,94,358	3,04,74,764		—	—		—	—
Net sales	20,06,53,482	20,62,05,987	22,86,92,667		—	—		—	—
Total assets	24,21,79,521	23,04,22,958	21,40,75,018		—	—		—	—
Profit margin	9.50%	11.35%	—		22.80%	21.60%		21.80%	21.40%
Total asset turnover	0.83	0.89	—		0.89	0.83		0.54	0.55
Return On Assets	7.87%	10.15%			20.29%	17.93%		11.77%	11.77%
Profit Margin ratio = Net income/net Sales
Total asset turover = Net Sales / Total Assets
Return on Assets = Net income / Total Assets Or Profit Margin X Total assets Turnover
	Current Year	Prior Year
Higest return on Total Assets	Apple	Apple
Highest Profit Margin	Apple	Google
Highest total asset Turnover	Apple	Samsung