External Financial Analysis of Risk and Profitability: Samsung Electronics

1.  What is Samsung ‘s Operating Leverage [OL] multiplier number?
2.  Then, what is the firm’s safety margin ration [SMR]?
3.  Then, the firm’s risk, the degree of operating loss exposure [DOLE]?
4.  What is your ESTIMATE of the firm’s Break-Even [BE] point in $ revenue?
5.  In your opinion, is this firm in extremely high risk, or overly low risk [risk averse]?  And write your basis CONCISELY in a sentence or two. [Do NOT GO BEYOND the news contents [which is the “scope rule” of a case study like this], and preferably you’d also want to use some of the numbers that you have computed as your basis.]
6.  Create Samsung’s What-If Analysis spreadsheet, and​
7.  Graph the data in the last three-to-four columns.

Sample Solution