Liquidity Ratios

Current Ratio:
Shows a firm’s ability to cover its current liabilities with its current assets.

1) Current Ratio (Huawei):

YEARS CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIOS

2018 88352 59875 1.48
2017 67544 44614 1.51
2016 59250 39879 1.49
2015 50274 35438 1.42
2014 42851 29757 1.44
2013 31141 18611 1.67
2012 28245 17703 1.60
2011 26603 17156 1.55

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 2.5

1.5

0.5

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Series1

Interpretation

Page 2
Current Ratio (Samsung)
YEARS CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIOS
2018 488,180,841 208,606,583 2.34

2017 129,949,219 59,390,443 2.19

2016 125,039,948 48,364,643 2.59
2015 107,614,287 43,543,216 2.47
2014 101,782,044 45,977,117 2.21
2013 105,215,419 48,746,473 2.16
2012 82,695,932 44,473,659 1.86
2011 61,997,800 38,428,001 1.61

1.7

1.65

1.6

1.55

1.5

1.45

1.4

1.35
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

samsung

Interpretation

Page 3
In Comparison

YEARS huawei SAMSUNG

2018 1.48 2.34
2017 1.51 2.19
2016 1.49 2.59
2015 1.42 2.47
2014 1.44 2.21
2013 1.67 2.16
2012 1.60 1.86
2011 1.55 1.61

2.5

1.5

0.5

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Huawei Samsung

Interpretation

Page 4
Quick Ratio:
Shows a firm’s ability to meet current liabilities with its most liquid assets.

2) Quick Ratio (Huawei):

Year Current Assets Inventory Current Liabilities Quick Ratio

2018 88352 16091 59875 1.2

2017 67544 12059 44614 1.2
2016 59250 12329 39879 1.2
2015 50274 10227 35438 1.1
2014 42851 7763 29757 1.2
2013 31141 4155 18611 1.5
2012 28245 3706 17703 1.4
2011 26603 17156
4312 1.3

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Page 5
Interpretation

Quick Ratio (Samsung)

Year Current Assets Inventory Current Liabilities Quick Ratio

2018 488,180,841 820,720,445 208,606,583 1.94
2017 129,949,219 22,088,128 59,390,443 1.82
2016 125,039,948 16,226,585 48,364,643 2.25
2015 107,614,287 16,219,383 43,543,216 2.19
2014 101,782,044 15,307,614 45,977,117 1.88
2013 105,215,419 18,176,943 48,746,473 1.79
2012 82,695,932 16,817,410 44,473,659 1.48
2011 61,997,800 13,627,603 38,428,001 1.25

2.5

1.5

0.5

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Interpretation

Page 6
In Comparison

Year huawei Samsung

2018 1.2 1.9
2017 1.2 1.8
2016 1.2 2.2
2015 1.1 2.1
2014 1.2 1.8
2013 1.5 1.7
2012 1.4 1.4
2011 1.3 1.2

2.5

1.5

0.5

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Huawei Samsung

Interpretation

Page 7