Question

BTN 5-9 Following are key figures (in millions of Korean won) for Samsung (Samsung.com), which is a leading manufacturer of consumer electronics products.

W in millions	Current year	One year prior	Two-year prior
Inventory	W18,811,794	W17,317,504	W19,134,868
Cost of sales	123,482,118	128,278,800	137,696,309

Required

Comment on and interpret your findings from part 1.

Short answer

According to financial ratios,Apple is the best performer among all three companies, and Samsung is the worst performer.

Step-by-step solution

Definition of Inventory

Current assets held by the business that include units held for sale are known as inventory. It includes raw material as well as work in process.

Interpretation of Findings

1. According to the inventory turnover ratio, Apple is performing better than the other two companies. Among the remaining two business entities, Microsoft is performing better than Samsung.
2. According to days sales in inventory, Apple can sell its inventory at the earliest than other companies. Apple company can sell its inventory within 6-7 days, Microsoft within 32-35 days, and Samsung within 50-55 days.