Key figures for Samsung follow (in ₩ millions).

Required

1. Compute common-size percents for Samsung using the data provided. Round percents to one decimal.

2. What is Samsung’s gross margin ratio on sales?

3. Does Samsung’s gross margin ratio outperform or under perform the industry (assumed) average of 25%?

Data from Samsung

 

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Cash and equivalents.... Accounts receivable, net Inventories Retained earnings.. W 30,545,130 27,695,995 24,983,355 215,811,200 W129,290,661 239,575,376 301,752,090 Cost of sales.. Revenues.. Total assets. Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In millions of Korean won) December 31, 2017 December 31, 2016 Assets KRW KRW Current assets Cash and cash equivalents Short-term financial instruments Short-term available-for-sale financial assets Trade receivables Non-trade receivables Advance payments Prepaid expenses Inventories 30,545,130 49,447,696 3,191,375 27,695,995 4,108,961 1,753,673 3,835,219 24.983.355 1,421,060 32,111,442 52,432,411 3,638,460 24,279,211 3,521,197 1,439,938 3,502,083 18,353,503 1,315,653 835,806 Other current assets Assets held-for-sale Total current assets 146,982,464 141,429,704 Non-current assets Long-term available-for-sale financial assets Held-to-maturity financial assets Investment in associates and joint ventures Property, plant and equipment Intangible assets Long-term prepaid expenses Net defined benefit assets 7,752,180 106,751 6,802.351 111,665,648 14,760,483 3,434.375 6,804,276 5,837,884 91,473,041 5,344,020 3,834,831 557,091 5,321,450 1,572,027 825,892 5,061,687 4,360,259 301,752,090 Deferred income tax assets Other non-current assets Total assets 262,174,324 Liabilities and Equity Current liabilities Trade payables Short-term borrow ings Other payables Advances received 9,083,907 15,767,619 13,899,633 1,249,174 793,582 6,485,039 12,746,789 11,525,910 1,358,878 685,028 12,527,300 2,837,353 1,232,817 4,597,417 351,176 356,388 54,704,095 Withholdings Accrued expenses Income tax payable Current portion of long-term liabilities Provisions 13,996,273 7,408,348 278,619 4,294,820 403,139 Other current liabilities Liabilities held-for-sake Total current liabilities 67,175,1 14 Non-current liablities Debentures 58,542 1,244,238 3,317,054 173,656 7,293,514 358,126 2,062,066 69,211,291 Long-term borrowings Long-term other payables Net defined benefit liabilities 953,361 1,814,446 2,043,729 389,922 Deferred income tax liabilities Provisions Other non-current liabilities 11,710,781 464324 2,708,985 87,260,662 Total liabilities Equity attribut able to owners of the parent Prekrence shares Ordinary shares Share premium Retained earnings Other components of equity Accumulated other comprehensive income attributable to assets held for-sale 119,467 778,047 4,403,893 215,811,200 (13,899,191) 119,467 778,047 4,403,893 193,086,317 (11,934,586) (28,810) 207,213416 186,424,328 Non-controlling interests Total equity Total linbilities and equity 7,278,012 214,491,428 6,538,705 192.963,033 301.752,090 262,174,324 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. |||||