LG Company Financial Analysis Essay - 1100 Words

LG Company Financial Analysis (Essay Sample) Content: Topic: LG Company Financial AnalysisName:Course:Instructorà ¢Ã¢â€š ¬s Name:Date:IntroductionThe company has been ventured in the electronic world that has facilitated by the increased number of customers in the market. This had been an ample time for the companyà ¢Ã¢â€š ¬s operations to be strategically arranged and formulated to ensure that they are effective and efficiently undertaken once the company started its operations .This helped the company in the production of quality products that do not disappoint the consumers thus earning their loyalty.The company has numerous competitors in the electronic market such as the mobile phone companies such as Samsung, Nokia, Apple, Blackberry, HTC, Alcatel, Sony, Motorola, Tecno mobiles among others. The competitors are at a rise as they also try to achieve the market dominance with their services and products. On the other hand in the face of appliances especially the home use appliances, such companies as Samsung, Armco , Phillips, and Sony among others are also in the move to dominate in the market. This poses a threat to the company of losing its dominance in the market (Grant, 2007).The companyà ¢Ã¢â€š ¬s financial statements are stated below indicating the trends in the financial status of the company. The trends are clearly shown in the statement of financial statements as well as in the income statement.LG COMPANY LTDINCOME STATEMENT FOR THE YEARS ENDED DEC 2011, 2012, 2013 Dec 312011Restated$ Dec 312012$ Dec 312013$ Revenues 165,001,771.0 201,103,613.0 228,692,667.0 TOTAL REVENUES 165,001,771.0 201,103,613.0 228,692,667.0 Cost Of Goods Sold 112,145,120.0 126,651,931.0 137,696,309.0 GROSS PROFIT 52,856,651.0 74,451,682.0 90,996,358.0 Selling General Admin Expenses, Total 26,588,576.0 33,073,560.0 38,934,012.0 RD Expenses 9,955,164.0 11,532,795.0 14,319,402.0 Depreciation Amortization, Total 668,620.0 795,989.0 957,931.0 Other Operating Expenses -- -- -- OTHER OPERATING EXPENSES, TOTAL 37, 212,360.0 45,402,344.0 54,211,345.0 OPERATING INCOME 15,644,291.0 29,049,338.0 36,785,013.0 Interest Expense -644,133.0 -599,006.0 -509,658.0 Interest And Investment Income 740,076.0 951,612.0 1,463,768.0 NET INTEREST EXPENSE 95,943.0 352,606.0 954,110.0 Income (Loss) On Equity Investments 1,399,194.0 986,611.0 504,063.0 Currency Exchange Gains (Loss) -664,817.0 -143,912.0 -330,105.0 Other Non-Operating Income (Expenses) -289,058.0 -47,993.0 -480,186.0 EBT, EXCLUDING UNUSUAL ITEMS 16,185,553.0 30,196,650.0 37,432,895.0 Impairment Of Goodwill -183,145.0 -204,746.0 -99,643.0 Gain (Loss) On Sale Of Investments 223,496.0 112,505.0 1,117,029.0 Gain (Loss) On Sale Of Assets 1,067,145.0 -177,348.0 -77,225.0 Other Unusual Items, Total -101,131.0 -12,044.0 -8,777.0 EBT, INCLUDING UNUSUAL ITEMS 17,191,918.0 29,915,017.0 38,364,279.0 Income Tax Expense 3,432,875.0 6,069,732.0 7,889,515.0 Minority Interest In Earnings -376,398.0 -659,910.0 -653,549.0 Earnings From Continuing Operations 13,759,0 43.0 23,845,285.0 30,474,764.0 NET INCOME 13,382,645.0 23,185,375.0 29,821,215.0 NET INCOME TO COMMON INCLUDING EXTRA ITEMS 11,613,300.0 20,130,020.0 25,893,396.0 NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 11,613,300.0 20,130,020.0 25,893,396.0 Balance SheetDivision 2011 2012 2013 Current assets 7,556 7,453 74,529 Non-current assets 8,029 91,282 91,282 Total assets 15,286 165,812 165,812 Current liabilities 4,724 43,380 43,380 Non-current liabilities 854 14,778 14,778 Total liabilities 5,578 58,158 58,158 Equity attributable to owners of the parent 9,554 106,293 106,293 Non-controlling interests 154 1,361 1,361 Tot...