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Acer Inc Financial Analysis

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Acer Inc. is Taiwan based IT Company engaged in manufacture and distribution of PCS and laptops, research, design, HDTVs, cell phones, LCD monitors, storage product and other IT related products. The company operates in Americas, Europe, Middle East / Africa and Asia-Pacific region. The company employs about 8000 employees worldwide and estimated revenue for 2010 is US $ 19.9 billion (Acer, 2011). The roots of Acer Inc. were planted in the year 1976 and today Acer became one of the world’s prominent PCS & Notebook providers. In the year 2009, Acer ranked 2nd worldwide in total PC shipment and also ranked 2nd in notebook market for over third year (Acer annual report, 2009). Acer is emerging as strong IT products provider company while most of its business relies on European market (Datamonitor, 2010). Recently Acer announced its ICONIA series of tablets including dual screen laptop come tablet with navigation jog which is a breakthrough product line any company has offered yet (Acer, 2011) and also introduced world’s first dual sim supported smartphone equipped with snapdragon processor (Datamonitor, 2010). The financial analysis of Acer Inc. tells us about the economic condition of the company in the market.

Ratios 2006 2007 2008 2009 2010
Ability to Payoff Debt Current ratio(%) 1.46 1.34 1.24 1.29 1.38 Quick Ratio(%) 1.22 1.08 0.97 0.997 1.1237 Gross Profit 10.8 10.2 10.4 10.1 10.2 Operating Profit Ratio 2.1 2.2 2.5 2.6 2.8
Ability to Operate Inventory turnover (times) 12.01 13.6 13.6 10.07 13.6 Earning Ability Return on assets(%) 5.2 5.09 4.42 3.37 5.08 Return on equity(%) 13.5 16.7 14.1 12.2 16.06 Return on Capital Employed 9.5 10.1 14.5 13.79 15.43 Net Profit ratio (%) 2.91 2.8 2.15 1.98 2.4

Leverage Debt turnover ratio 5 4.5 5 5.1 6.1 Debt equity ratio 0.002 0.2 0.04 0.13

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