Star River

In: Business and Management

Submitted By eram
Words 3235
Pages 13
Edwin Ramos
John Connors
Luciano XXX

STAR RIVER ELECTRONICS LTD
FINANCIAL QUESTIONS TO BE FIGURED OUT BY ANDY CHIN

1. Develop a report showing key insights on Star River historical performance by considering the income statements of the last four years (1998 to 2001). 2. Build a two-year performance financial forecast including debt requirements at the fiscal years ending 2002 and 2003. 3. Recommendations about operating and financial changes based on the historical analysis and forecast. 4. Analyse the option to invest now or wait three years to buy the packaging equipment.

1. Key insights on Star River historical performance by considering the income statements of the last four years (1998 to 2001).

* Interest coverage: as depicted in the graph 1.1L, the capacity of Star River to pay current interests with available earnings increased to 2.18 in the past fiscal year as a consequence of the increase of EBIT in about 18% and an interest expense decrease of 1.5% (see Annex 1). Even though, the ability of the company to meet its interest expenses may be questionable by the bank as generally, below 2.5 is considered as a warning sign of poor solvency.

* Debt to equity and debt to total capital: As a consequence of a higher year-by-year increase of debt in comparison to equity and total capital (see graph below), the debt-to-equity and the debt-to-total capital ratios present a growing trend. This aggressive leveraging aimed at financing operations, endangers shareholders’ and total capital benefits.

* Working capital cycle: A huge increase in inventory of 94.6% in the fiscal year 1999-2000 shows a big percentage of inventory held in terms of sales. This is, in average 74.8 SDG were held in inventory for each SDG in sales during 2000. This relation increased to 88.7 in 2001 (the Annex 3 shows the…...

Similar Documents

Stars

...By first glance at the title Stars, I assumed the story would have something to do with the author’s perception of the constellations during the night. By my growing knowledge of the Holocaust I then remembered the Star of David was very significant in determining Jews from non-Jews. It still baffles me to believe that this symbol, which is worn on chains by people of the Jewish faith today, could be used to discriminate one race from the other and aid in their humiliation and ultimately their death. During the reading, I was hearing the similar story of the suffering and measures taken by Jews while in the concentration camps. However, I discovered a different tone than most other stories. Even though Michael was frightened like the rest, he chose to act in order to save his cousin. His courage and quick thinking skills, which benefited Jews greatly during this period of persecution, not only saved himself but saved another by risking his life in exchange. A memory bubble came to me of the numerous times I stood standing in line at a bar without being of the legal age to drink alcohol. Most occasions I would hand the bouncer my authentic I.D. stating that I was underage and he would mark my hand with an “X” or something similar to show that I wasn’t allowed to drink while in the bar. Thinking on my feet, I learned that sometimes the “X” would come right off if I ran quickly to the bathroom to wash it off. Other times I would put Chap-Stick on the back of my......

Words: 394 - Pages: 2

Stars

...in about 150 BC He ranked the stars he could see in terms of their brightness, with 1 representing the brightest down to 6 representing the faintest. Modern astronomy has extended this system to stars brighter than Hipparchus' 1st magnitude stars and ones much, much fainter than 6. As it turns out, the eye senses brightness logarithmically, so each increase in 5 magnitudes corresponds to a decrease in brightness by a factor 100. The absolute magnitude is the magnitude the stars would have if viewed from a distance of 10 parsecs or some 32.6 light years. Obviously, Deneb is intrinsically very bright to make this list from its greater distance. Rigel, of nearly the same absolute magnitude, but closer, stands even higher in the list. Note that most of these distances are really nearby, on a cosmic scale, and that they are generally uncertain by at least 20%. All stars are variable to some extent; those which are visibly variable are marked with a "v". What are apparent and absolute magnitudes? Apparent is how bright the appear to us in the sky. The scale is somewhat arbitrary, as explained above, but a magnitude difference of 5 has been set to exactly a factor of 100 in intensity. Absolute magnitudes are how bright a star would appear from some standard distance, arbitrarily set as 10 parsecs or about 32.6 light years. Stars can be as bright as absolute magnitude -8 and as faint as absolute magnitude +16 or fainter. There are thus (a very few) stars more than 100 times brighter......

Words: 865 - Pages: 4

Will of a River

...The “Will of a River” by Alfredo Q. Gonzales, talks about the life of man on earth. The river is likened to a person’s life. Firstly, it shows that it is an undeniable fact that there are many trials, problems and difficulties that one encounters in life. Sometimes these circumstances are considered to be negative. There are many hindrances and obstacles that one faces in life. How are they dealt with? The person must have patience and endurance to hurdle testing’s and even adversaries in life. There are those who easily get dismayed and discouraged. They surrender or even retreat, but there are those who persevere and do not easily lose hope, like the river. Secondly, it also speaks of determination to reach the goals of life. If we cannot overcome the obstacles, we can under come them as aptly expressed by the author. Have the optimism to reach your goal and possess an outlook in life not in pessimism but in hope. You have that optimism to reach your goal and your outlook in life must not be one in pessimism but of hope. When we experience hardships in life or when things get rough, we must not quit. Just stick to the fight. One has to live his life faithfully and be a blessing to others. This is why the river exists. Without doubts this is the noble reason for our existence on earth. You are not just living for yourself but you live firstly for God and for other people, as well. The popular saying, “No man is an island” suggests that you cannot live alone but you......

Words: 485 - Pages: 2

Stars

...Famous Stars in our Galaxy There are about 300 billion different stars in our galaxy. All of which contain different history, characteristics and general information. They each contain their own story of how they came about. Many of these stars are a part of a certain constellation and have been around for billions of years. Polaris is one the best known stars. (“How Do Stars Form,” n.d.) This star is known by many names like the North or Pole Star. Polaris has not always been the North Star and will not always remain the North Star. As centuries change the North Star will also do so. “A famous star called Thuban, in the constellation Draco the Dragon, was the North Star when the Egyptians built the pyramids.” (earthsky) Polaris will remain as the North Star for many more centuries to come. There was a time where people depended on their lives on this star to guide them. Fortunately, they used the North Star and the Big Dipper without getting lost. “. When slavery existed in the United States, slaves counted on the Big Dipper (which they called the Drinking Gourd) to show them the North Star, lighting their way to the free states and Canada.” (earthsky) Polaris is not hard to miss in the sky; it is the 50th brightest star and does not disappear. The reason this star will not disappear is due to the fact that the Earth’s axis is aligned pointing towards Polaris in the same direction North faces but will eventually shift over time. In comparison to the sun, this star is......

Words: 2479 - Pages: 10

Stars

...Science of Stars Science of Stars This paper is about the science of the stars.   In this paper I will address how astronomers determine the composition, temperature, speed, and rotation rate of distant objects.   I will briefly explain the properties of stars in the H-R diagram from Chapter 15 of the course textbook “The Cosmic Perspective”.   I will also summarize the lifecycle of the Sun and identify where the Sun is in its lifecycle.   Studying Distant Objects Astronomers study light which comes from distant objects to determine its composition, temperature, speed, and rotation of distant objects.   This process is called spectroscopy.   Spectroscopy was first used to study celestial objects in 1863 by William Higgins.   By using this process he discovered the Sun and most stars are primarily composed of hydrogen gases. By using the spectroscopy technique it was discovered that different objects give off and absorb different spectrums of light. Where the object falls in the spectrum of light can be determined by examining its peak intensity at each wave length of light.   The light helps us to determine an objects composition, temperature, and rotation. There are three types of spectra used to evaluate light.   Objects which absorb light at different wavelengths are referred to as absorption spectrum. The intensity of light drops in objects which absorb light and therefore appear as dark lines on a rainbow of colors.   Objects such are stars, planets with......

Words: 321 - Pages: 2

Stars

...did not make much of an impact on his life. On the other hand, my father has completely changed my life. He has shaped the characteristics of his only child without even realizing it. My dad has taught me that just because he reflects a negative influence upon my life does not mean that I cannot succeed. I have turned his negative choices into lifelong advice. These experiences made me realize that I do not need to walk in his path of destruction or follow in his footsteps—I can create my own. Watching my father drink his life away has truly inspired me to never give up on my dreams and to never lose hope. As the famous American poet Ralph Waldo Emerson once said, "When it is dark enough, you can see the stars." Living with my father, I am able to see my stars shine brighter each and everyday. Even though my father has not always been dependable, his actions continue to have an everlasting impact on my life. I now know that I can overcome all of life's obstacles thanks to my father who was put on this earth to make me the best, strongest, and most successful person I can possibly be....

Words: 605 - Pages: 3

Stars

...what companies are out there and what they have to offer you. You have competition on these sites and you can get a better price by checking out their sites. Most of the time it tells you if you like them on a social site that you can get a discount on the product you want to order. Conclusion Communication has come so far with technology today that it has made communicating with other countries and colleagues so much easier these days, you can be away from your desk and still communicate thru the telephone. More and more people are depending on electronic communication for business and this is going to be the way of the future. Reference: Bovee, C. L., & Thill, J. V. (2012). Business communication today (11 ed.). Upper Saddle River, NJ: Pearson used (chapter 7)...

Words: 336 - Pages: 2

The River

...not casually slowly setting but is already entering into murkiness. The “suspicious ripple” personifies a feeling of a “thing” or two are lurking and gives the sense of dubiousness in the unforeseen horizon. The author uses the term ‘suspicious' the further intrigued the readers to read on and explore the upper end of the reach. With a hyperbolic sense, “caution” is undeviating towards vigilance of roaming around that precinct especially in dusk. ‘Caution’ gives a sense of relation on how the author has to be as careful as possible especially while carrying wood as the river was rather tapered and straight. The contrast of ‘high sides like a railway cutting’ are between high sides and railway cutting. ‘Railway cutting’ shows various trees lined up on both left and the right side. With the term ‘high sides’, the author gives an imagery of the trees on both side ‘traveling’ up a hill. The ‘river' is the passage resembles the hill. ‘Changes into stone’ gives a perception of the stillness of the trees at the area. The author hyperboles the scene as there were not even a single gush of wind. The place was somehow alive and asleep at the same time. Living and breathing but still not awaken and silent. The quote ‘it seemed unnatural, like a state of trance’ intensifies the situation of the author where how the trees were so still and silent were rather peculiar. The term ‘struck you blind’ portrays the scene at night being a typical but rather not at the same......

Words: 620 - Pages: 3

The River

..."The River-Merchant's Wife: A Letter" (1917) Summary: This poem takes the form of a letter from a lonely wife who has not seen her husband in five months. She begins by reminiscing about meeting him during childhood. She was pulling flowers at the front gate and he came by on stilts, playing horse. The next two lines, "And we went on living in the village of Chokan/Two small people, without dislike or suspicion," imply that the pair did not grow close right away following that encounter; they continued to grow up separately. In the next stanza, the wife describes marrying her husband at age fourteen. After that, she was continuously shy, either out of respect, sub-ordinance, or just because of her introverted personality. According to the next stanza, she became more comfortable with the marriage by age fifteen and "stopped scowling." A year later, her husband (a merchant) departed for another village, which is where he has been for the past five months. The monkeys' sorrowful noise mirrors her loneliness. She writes that her husband "dragged [his] feet" when he left - indicating that he did not want to leave her. She ends her letter by writing that if he comes back along the river, he should send word ahead, and she will come out to meet him. The poem is signed "by Rihaku." Analysis: Pound was not the creator of this poem; he translated it from the original Chinese version by Li Po. The Chinese original likely had a specific form and identifiable meter, but......

Words: 3595 - Pages: 15

Case 26 - Star River Electronics Ltd.

...Corporate Finance 2 March, 2015 Case 26 – Star River Electronics Ltd. Introduction Star River Electronics is a joint venture between England’s Starlight Electronics Ltd. and an Asian venture-capital firm, New Era Partners. Star River Electronics is based in Singapore, and its mission was to manufacture CD-ROMs as a supplier to major software companies. Star River Electronics has gained fame in the industry for producing high quality discs. As the optical and multimedia products became more and more popular in the mid-1990s, CD-ROM manufacturing industry experienced rapid growth during this time. Due to this effect, small manufacturers overreacted, creating oversupply that pushed prices down by as much as 40%. Consolidation followed as less efficient producers went out of business. Because of its superior reputation, Star River was able to survive the shakeout. While other CD-ROM manufacturers floundered, Star River’s volume of sales grew at a robust rate in the past two years. Unit prices, however, had declined because of increasing competition in the market and the growing popularity of substitute products, especially digital video discs (DVDs). DVDs had 14 times larger storage capacity and is a threat to displace CD-ROMs. Although, CD-ROMs still comprised 93 percent of all optical-disc-drive shipments in 1999, a study predicted that this number would fall to 41% by 2005, while DVD drives would fill the remaining 59%. Star River Electronics had begun to......

Words: 1419 - Pages: 6

Star River Electronics

...Case (individual assignment) Case: Star River Electronics Ltd. Student ID: By submitting this coversheet and case, I acknowledge that I have not given nor received any assistance on this assignment. If I used an editor the editor did not comment on the content, i.e., issues, analysis or recommendations. Introduction Star River Electronics is a joint venture company known to be a large manufacturer and supplier of high quality CD-ROMs to software companies. The joint venture company was founded in Singapore by Era Partners, an Asian venture firm, and Starlight Electronics Ltd, a UK company. In the past, Star River Electronics (reputable for producing high-quality discs) experienced a great success in the industry. In the 1990’s, the high demands for CD-ROM lead to more competitors entered the market, which caused a huge price reduction and posed a threat of liquidating for many participants of the market. The newer storage devices such as the DVDs are a huge threat to Star River due to its 14 times more storage capacity. The market share of the CD drives is expected to drop from 93% to 41% for an increase in the share of DVD drives from 7% to 59% by the year 2005. Key Issues Star River is going through a difficult period with the increasing threat of the DVD drives and the change in top executives. Adeline Koh, the newly appointed CEO, needs to address immediately the expected financial performance of Star River in 2002 and 2003. It is a......

Words: 1920 - Pages: 8

Star River Electronics

...Star River Electronics Ltd. Executive Summary Group 6 Josh Patience Eli Hohbach Mary Chicoine Star River Electronics was founded as a joint venture between Starlight Electronics Ltd., United Kingdom, and an Asian venture-capital firm, New Era Partners. Star River Electronics produced CD-ROMS as a supplier to major software companies. In the last two years, CD-ROM sales have grown at a healthy rate, however, their unit prices have dropped due to the introduction of digital video discs (DVD’s). Tasked with a declining trend in CD-ROM usage, and a growing usage of DVD’s in the market, Star River hoped that their newly installed capacity would help them stay in the market and increase their proportion of revenue from DVD’s. Star River Electronics steady growth rate of sales of 15% is one positive sign from the analysis, however, there’re many red flags concerning Star River Electronics. The operating margin, return on sales, return on equity and return on assets all seem to decline from 1999 to 2000. There was also a giant jump in inventories from 1999 to 2000. This would explain their newly installed capacity that they were talking about earlier. This new capacity was more than likely financed with debt as their debt/equity and debt/capital ratios all had a significant jump in 2000. Linked with declining sales in CD-ROM’s and an increasing amount of debt; one could believe that the riskiness of Star river Electronics have gone up. The financial forecasts for 2002...

Words: 644 - Pages: 3

Stars

...because of ethical considerations. Scientist should be able to detect life or traces of life chemical composition, most Alien species are likely to be sentient and intelligent. Astronomers are equipped to know other sentient intelligent species regardless of how advanced and different. Visualizing little green men or other living creatures rather, fossil remains that might be evidence of life having once existed. If life out there was researching as humans have been they would find living and existing forms of life on earth. Humanity’s search has gone on for century’s expectation that extraterrestrial life exists. The Hubble Space Telescope has made discoveries as many as one hundred new planets out beyond our solar system orbiting stars in the way galaxy. Chances are when and if life is discovered elsewhere in the universe it may very not have a form or shape anything like human life. Remembering John F. Kennedy's speech a mission to get to the moon and the first satellite and intelligence of astronomy. Great success with the space station and shuttle launches, but the only time everyone is focused on it is when there is a disaster. Humans wondered if there's life in other planets, if aliens ever visited human if they left descendants one earth somehow possible can be next door according to many different cultures, there are alien souls trapped in human bodies. The Egyptian mythology is filled with references images of flying objects in the walls of Egyptian......

Words: 2110 - Pages: 9

The Will of the River

...home flows a river. For a dozen summers I have visited it, and almost every year I make an effort to trace its course back to its source in the neighboring hills; I do not consider my vacation there complete without doing this. In common with others streams of its kind, our river suffers much from the summer drought. I have seen it so shrunken that fish lay lifeless on the parched sand and gravel of its bed. But this summer I saw something I never had been sufficiently observant in other abnormally dry years, I am sure I could not have failed to notice the same thing earlier. One morning last April, in company with a student friend and also my elder son, I started out for the hill to spend the day by the rapids and cascades at a place called Intongaban. We followed the course of the river. After we had walked a kilometer or more, I saw that the river had disappeared and its bed was dry. I looked around in wonder because past our little country house below and out toward the sea half a mile or so farther down, the river was flowing clear and steady in its usual summer volume and depth. But where we stood at the moment there was no water to be seen. All about us the wide river bed was hot and dry. We pursued our way on toward the hill, however, and walking another kilometer we saw the stream again, though it had spread itself so thin it was lost at the edge of the waterless stretch of burning sand and stones. And yet, continuing our way into the hills, we found the river grow......

Words: 1065 - Pages: 5

Stars

...In this paper I will explain how astronomers determine the composition, temperature, speed, and rotation rate of distant objects using various methods. I will explain the properties of stars. I will also summarize the complete lifecycle of the Sun and determine where the Sun is currently in its lifecycle.Light is a type of energy. Light behaves like a wave because it acts as a disturbance in the magnetic and electric field of space. Light can behave as a particle, because it sends all its energy to one place. A particle of light is called a photon. Photons can be absorbed into objects, bounce off objects, or fly through space. Scientists use the electromagnetic spectrum to organize and explain all types of electromagnetic energy that exist throughout the universe. Electromagnetic waves are organized in the electromagnetic spectrum according to their wavelength from the shortest, which are known as gamma rays to the longest which are known as radio waves. Electromagnetic energy is created by vibration. The vibration produces waves that carry energy. Each magnetic wave emits a different level of energy. These energies travel silently at the speed of light and produce a signature wave with a unique range of length, energy and frequency that scientists can identify and measure. One way that the energy of an electromagnetic wave is measured is by measuring its frequency. Frequency refers to the number of waves a vibration creates during a period of time. In general, the higher......

Words: 296 - Pages: 2