DuPont analysis (Apple vs Samsung ) Research Paper

DuPont analysis (Apple vs Samsung ) - Research Paper Example It is a recognized world brand that has led the process of digital migration in communication and computers. The main products produced by the firm are iPhone, iPad, Mac, iPod, iTunes, Mac App Store and iCloud. Apple Company primarily trades its shares in the NASDAQ while it’s also listed in other exchanges including mexico and paris. Samsung started as a small business solely owned by a Korean based business man who was mainly involved in export business. The business grew from exporting dried fish vegetables and fruits to manufacturing the products themselves. Years later the firm diversified its product line to electronics. The giant firm then expanded operations opening up branches all over the world while retaining its original brand name Samsung. The firm comprises more than 78 different companies and affiliates in its wide range of products. In the electronics sector, Samsung produces a wide variety including mobile phones, tablets, televisions and home appliances. The firm is worth being a bench mark for Apple Inc due to its experience and achievements in the market. The products of Samsung compete well with Apple products in the market thus the need to compare them. The efficiency of the firm can be measured using the DuPont analysis. DuPont analysis measures assets of their gross book value to produce a higher return on equity. The use of the gross book value is aimed at getting the actual return on equity without accounting for depreciation which artificially reduces the return on equity. Depreciation reduces the return on equity, but is not an actual activity that reduces income, but a value assumed that the asset depreciates by during the course of its usable life. To get the return on equity, the following formula is used: The firm, Apple Inc is currently not performing well when performance is measured using the DuPont identity. Apple Inc has a low return on equity compared to its competitor Samsung. Investors interested