Spelling suggestions: "subject:"samsung electronics(SEC)"" "subject:"samsung delectronics(SEC)""
1 |
The Study in Group's benefits of Samsung ElectronicsChen, Li-Kuang 04 September 2006 (has links)
Lots of researches and reports analyzed the success of Samsung Electronics (SEC) mostly focusing on Samsung Group. This paper attempts to look into the relationship between SEC and Samsung Group in terms of SEC¡¦s capital management, and intends to find out if Samsung Group brings advantages to SEC.
The analysis in this paper is divided into two parts: ¡]1¡^ examining the source and the use of SEC¡¦s capital by comparing with AUO and PSC¡F¡]2¡^scrutinizing SEC and the Group's financial performances.
Firstly, from cash flow's point of view, AUO and PSC depend on substantial financing to meet their capital gap. Differences in working capital also cause impact on cash flow from operating activities. Same results are found similarly in analyzing the SEC and the Group.
Moreover, regarding the purpose the capital, SEC evidently shows higher weights in cash outflows from investment activities than in property, plant and equipment. The difference mainly lies in the cross-investments between SEC and Samsung Group.
On the other hand, based on the computation of financial ratios, SEC benefits from Samsung Group's integrated supply chains in comparison with AUO and PSC, especially in terms of account receivables and inventories. However, the same advantages are not shown in account payables conversely. It is inferred that SEC supports Samsung Group through giving looser credits.
To sum up, as far as cash flows are concerned, SEC is capable of operating with sufficient working capital because of diversification and cross-investment within the Group. Meanwhile, SEC exhibits superior financial ratios than its peer companies as Group's cooperation. Subsequently, it is concluded that SEC gains much stronger competitive advantages from Samsung Group.
|
Page generated in 0.0588 seconds