Question

One way of assessing a company performance is through assessing their economical performance by measuring three main dimensions:

1. Performance in product markets (e.g. sales growth or market share)

2. Accounting measures of profitability (e.g. profit margin or return on capital employed)

3. Financial market measures (e.g. share price).

Thus, please assess the economical performance of Foxconn discussing the above three dimensions

Answer 1

As per the Foxconn's earnings report published on 29 March 2019 -

1. Performance in product markets - Sales are expected to decline due to decline in sales of iPhone as Foxconn is a supplier to Apple Inc. The decline in demand in tech industry is expected to affect other tech companies also during the year.

2. Profitability -

Net Profit - $2.03 Billion
Net profit was 12% below the profit occurred during same period previous year.
The profit was above the expectations in this quarter due to the growth in revenue.

3. Financial Market Measure -
The stock of Foxconn rose 2.4% ahead of the results. The stock is up 2.9% this year after posting 30% decline in the previous year.