Make a 5-year trend analysis for each company, using 2011 as the base
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Evaluate the financial opportunity presented by the companies. If you were a creditor, which company would you be more likely to lend money to? Defend your decision. ÿ
Research global implications for the international company selected. How might changing environmental factors affect organizational choices? ÿ
Consider the ethical climate (internal or external) of your chosen companies. Describe the ethical issues and impact on the stakeholders. What has been/is being done to resolve these issues? Do you agree with these methods for resolution? If not, what might you do differently? ÿ
Make a 5-year trend analysis for each company, using 2011 as the base year, of:
ú Net sales.
ú Net income. Discuss the significance of the trend results.
Compute for 2015 and 2014 the:
ú Debt to assets ratio.
Samsung (2015) = 0.2606, (2014) = 0.2705
Microsoft (2015) = 0.5456, (2014) = 0.4792
ú Times interest earned. How would you evaluate each company’s solvency?
Samsung (2015) = 46.77, (2014) = 48.01
Microsoft (2015) = 24.70, (2014) = 47.60
Samsung has a higher solvency ratio, meaning that it has a higher probability of meeting its debt obligations unlike Microsoft which has a lower solvency ratio for both years.
Compute for 2015 and 2014 the:
ú Profit margin.
