Foxconn Financial Analysis

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The analysis of stock prices and financial information

1. Financial Statements For Foxconn Technology Co Ltd (2354) 1.1 Income statement analysis
Year over year, Foxconn Technology Company Limited has seen revenues shrink from 136.7B TWD to 131.5B TWD, though the company was able to grow net income from 7.6B TWD to 8.0B TWD. A reduction in the percentage of sales devoted to income tax expense from 1.47% to 0.41% was a key component in the bottom line growth in the face of falling revenues.

1.2 Balance sheet analysis
This company's debt to total capital ratio, at 14.68%, is in-line with the Computers and Peripherals industry's norm. Additionally, there are enough liquid assets to satisfy current obligations. Cash Collection is a strong suit as the company is more effective than most in the industry. As of the end of 2011, its uncollected receivables totaled 34.2B TWD, which, at the current sales rate provides a Days Receivables Outstanding of 86.06. Last, Foxconn Technology Company Limited is among the least efficient in its industry at managing inventories, with 15.46 days of its Cost of Goods Sold tied up in Inventories.

2. Analysis of stock price
Stock prices floating up and down in the past five days, and it keeps between $80 and $90 since January 2013. Foxconn shares fell nearly 33 percent since October 2012. I personally think the main reason is that 9.7-inch iPad, is in decline. For the iPad Mini, Hon Hai has to share.” Pegatron Corp. (4938) assembles about 40 percent of iPad Minis. While Foxconn is the sole manufacturer of the original iPad, which is losing market share to the new version Hon Hai Precision, Foxconn’s flagship company, dropped 1.9 percent, the most since Jan. 24, to NT$83.20 at the close in Taipei trading. Pegatron rose 0.1 percent to NT$40.55, the highest since Oct. 22. Apple ended at $448.85 yesterday, compared with its record close of $702.10

References:
http://finance.yahoo.com/q?s=2354.TW...
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