[중급회계] sk에너지 재무분석(영문)

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  • 2009.08.31 / 2019.12.24
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목차
1. SK Energy’s principal activities
2. The performance of SK energy
A) Sales revenue
B) Gross profit
C) Operating profit
D) Net income
3. Evaluating the liquidity of SK energy
A) Current ratio
B) Quick ratio
4. The meaning of cash flow statement
5. Interesting Accounting Policy – Inventory valuation
본문내용
As time goes by, natural resources are decreasing. All worlds focus on natural and alternative resources. Under this situation, we think of Energy Company as our topic. So, we selected SK energy Company. In the light of financial, we analyzed this company with some tools. Although it is hard to handle all kind of method and even specific numbers, we tried to find what the company has done. The order of content follows this. First of all, we will introduce what this company is doing and what kinds of department they have. And then we will check evaluate the performance and liquidity. In an addition, we will talk about what kind of meaning the meaning of cash flow statement has with the income statement and the balance sheet. In the last, there are various accounting policies in financial statement. Among these, our team is interested in “Inventory valuation”. So, we are going to say the result of what we discussed and thought.


1. SK Energy’s principal activities

The company operates a diverse sales and distribution network for both domestic and international operations. The network includes domestic and overseas subsidiaries, affiliates, such as SK Networks and SK E&S, local retail outlets and SK-branded service stations. Let’s see what kind of business they are doing approximately.

A) Petroleum Business
SK energy started out as Korea’s first oil refiner and has provided stable supplies of petroleum products for more than four decades, helping to drive Korea’s economic development. SK energy’s primary obligation is to supply refined petroleum products to meet domestic demand.

B) Petrochemical Business
The petrochemical business is cyclical, and demand fluctuates depending on the overall condition of the domestic economy. SK energy focus on value-added petrochemical product by diversifying its product portfolio, differentiating its products from the competition and introducing new products constantly.

Besides above two items, SK energy has Lubricant Business, Exploration & Production business, Technology Business, Marketing Business, and Research & Development.

We also research sales portfolio and operating profit portfolio. Main business of SK energy is refining Business and Petrochemical Business. The petroleum business contributed 66.5% of total sales, followed by 26.7% for petrochemicals, 4.1% for lubricants and 1.2% for the E&P business. In the case of operating profit portfolio, the petroleum account for 41% and petrochemicals part is 34% of total. And then, lubricants and E&P take 25% of total.


2. The performance of SK energy

To evaluate the performance of SK energy, we analyzed the activity they have done with sales revenue, gross profit, operating profit, and net income for 3years by using income statement. Before we check, we need to know the numbers about their performance. The important thing is to see the meaning behind the numbers. Because seemingly, it looks good, but the problem we don’t think maybe exists.


Company Content 2006 2007 2008
SK Sales revenue 23,652 27,788 45,737
GS 19,130 21,468 34,424
S-OIL 14,555 15,229 23,000
SK Gross profit 2,374 2,862 3,317
GS 1,336 1,737 1,706
S-OIL 1,309 1,468 1,829
SK Operating profit 1,165 1,479 1,892
GS 670 1,008 949
S-OIL 925 1,084 1,396
SK Net income 1,394 1,209 888
GS 620 632 (83)
S-OIL 758 746 446

A) Sales revenue
As you see above the chart, the sales revenue is increasing in three companies. Among them, in the case of SK energy, sales revenue increased by about 117% from 2006 to 2007, and about 165% from 2007 to 2008. However, comparing to SK, GS and s-oil figures are lower than SK a little bit. Gs increased by about 112% from 2007 to 2008 and about 160 from 2007 to 2008. A margin of sales revenue of S-oil is smaller than that of GS. From 2006 to 2007, sales revenue increased by about 104% and from 2007 to 2008, by about 151%. Through this sales revenue, we know SK sales revenues are better than other companies, but we cannot say SK’s performance is the best. Even though sales revenue is the best of them, we need to check more specifically. Gross profit may not be the same as sales revenue. So let’s see the gross profit.

B) Gross profit
Gross profit is sales revenue minus cost of sales. It is the most important source of profit in income statement. In the light of gross profit, SK is a little bit insecure. Because from 2006 to 2007, it increased by 120% but from 2007 to 2008, it decreased by 4%. Gs is more serious than SK energy. From 2006 to 2007, start was good, increased by 130% but from 2007 to 2008, it only increased by 98%. However, s-oil is outstanding among them. From 2006 to 2007, it increased by 112% and in the next year, it increased by 124%. When we see this, SK is not bad. We will see the rest of contents.

C) Operating profit
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