How do they compare Samsung Current Ratio Acidtest ratio Ave

Samsung Current Ratio Acid-test ratio Average Collection Period (Days) Average Sale Period (Days) Return on Total Assets Debt-to-Equity Ratio Gross Margin % 2017 2016 2015 0.370.03-0.05 1.05 0.95 201720162015 0.91 1.241.36 0.62 1.071.25 Samsung Current Ratio Acid-test ratio Average Collection Period (Days) Average Sale Period (Days) Return on Total Assets Debt-to-Equity Ratio Gross Margin % 7.05% 2.44% 2.14% 0.35-0.30-0.19 -4.54% -7.70% -12.53% 52-49-49 1.90% -5.90% -11.70% 1.39 1.15 1.17 8.00% 1.00% -2.00% 2017 2016 2015 2017 2016 2015 0.91 -1.24-1.36 -0.62 -1.071.25 Current Ratio Acid-test ratio Average Collection Period (Days) Average Sale Period (Days) Return on Total Assets Debt-to-Equity Ratio Gross Margin % 1.28 1.21 1.41 0.16 0.02 0.30 Current Ratio Acid-test ratio Average Collection Perlod (Days) Average Sale Period (Days) Return on Total Assets Debt-to-Equity Ratio Gross Margin % 5.15% 8.34% 13.84% 1.74 -1.45 -1.36 -12.54% -8.70% -10.53% -1.90% 5.90% 11.70% 1.39-1.15 1.17 -8.00% -1.00% 2.00% The left side is compared against industry averages, and the right side is the results compared against each other.

Solution

It would be better to put money in Samsung because

1) it is having good liquidity as current and acid-test ratio are positive and above 1.

2) Debt to equity ratio shows above 1, which means that good leverage has been put for maximum returns to shareholders.

3) The company enjoys positive gross margin of 8% and 1.90% on Total Assets.

Money investment requires profit margin and cash liquidity to have return on money so invested. So, the comparison points would be these.

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