Star river electronics. Star River Electronics Ltd 2022-10-10
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Star River Electronics is a fictional company that specializes in the production and distribution of electronic devices such as smartphones, laptops, and tablets. Founded in the early 2000s, the company quickly rose to become a major player in the highly competitive electronics industry, thanks to its innovative products and exceptional customer service.
One of the keys to Star River's success was its commitment to research and development. The company invested heavily in the latest technology and equipment, which allowed it to stay ahead of the curve and offer products that were at the cutting edge of the industry. This included things like high-resolution displays, fast processors, and long-lasting batteries, all of which helped to make Star River's products stand out from the competition.
In addition to its focus on technology, Star River also placed a strong emphasis on customer satisfaction. The company's customer service team was known for being highly responsive and helpful, and it offered a range of services such as repair and maintenance to ensure that its products were always operating at their best. This helped to build a loyal customer base that was willing to pay a premium for the company's products.
As the electronics industry evolved, so too did Star River. The company continued to innovate and adapt to the changing market, and it eventually expanded into other areas such as home appliances and wearable technology. This diversification helped to insulate the company from market fluctuations and allowed it to continue to grow and prosper.
Overall, Star River Electronics was a highly successful company that made a lasting impact on the electronics industry. Its commitment to innovation, customer satisfaction, and adaptability helped it to rise to the top of the market and become a household name around the world.
Star River Electronics
We specialize in providing PCB fabrication, PCB Assembly and components sourcing service. Case Overview Star River Electronics Ltd. Low values for the current and quick ratios indicate that company may have faculty in meeting current obligations. Star River Electronics continues to survive after many shakeouts created by technological innovations in the industry, most notably in 2015 where the music and video entertainment where online data streaming was just beginning to take over. From the last chart we can find that account receivable has more influence than sales growth rate when we focus on short term borrowing. Because of debt financing Star River Electronics Ltd.
Other relevant facts and assumptions for preparing the financial forecast are stated below- Assume that sales will increase at 15% per year Operating expenses and operating profit will increase by the same percentage Assume that cash will increase at 15% per year Accounts receivable and inventories will also increase by the same percentage Assume accounts payable and other accrued liabilities will increase by 15% per year Interest expense is weighted for short-term debt and long-term debt: 6. Statement of the Problem As a joint venture between Starlight Electronics Ltd. Administration and ailing expenses is the average of last 4 years. Experts in the industry have predicted a decrease in the CD and DVD market, but a stable increase in the blue-ray disk market. We advise managers to find other ways to raise funds, such as increase equity. Major software businesses buy the company's high-quality CDROMs. Problem Definition: In order to ensure the continuation and financial stability of Star River Electronics Ltd.
The main driver assumptions in these forecasts are: The growth assumption of 15% increase in Sales. RELEVENT FACTS AND ASSUMPTIONS DVDs have 14% more storage capacity than CD-ROMs 1999: CD-ROMs accounted for 93% of sales o Estimated to decrease to 41% 2001: DVDs accounted for less than 5% of sales o Estimated to increase to 59% The new DVD manufacturing equipment will cost SGD54. The Debt Service Coverage Ratio DSCR shows that there is enough net operating income to cover only about 4% of annual debt payments. The main implications are production cost and inventories. Can the firm repay its loan within a reasonable period? This may be caused by old packaging equipment breaking and causing overtime to be paid out for employees. Also, it will save the tersest expense.
Star River Electronics Limited Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies
The ROE has increased from 2000 to 2001 for Star River Electronics Ltd. With a modern standard factory building of 5,000 square meters, the total number of employees is now more than 200, and the annual production capacity is 120,000 square meters. Use the following format. ANALYSIS OF ALTERNATIVES First and foremost it is necessary to address that the alternative solutions in this case is a list of several analyses which are used in conjunction as opposed to one being chosen amongst the list. Net cash used in financing activities shows an upward trend with a peak in 2008. When Inventories decline, cash flow of company will increase.
The calculated Weighted Average Cost of Capital rWACC of Star River Electronics Ltd. The longer days in receivables indicates that company need longer time to collect on its sales to customers on credit. Star rivers asset turnover has been decent over the years. NPV Analysis: We calculated the Net Present Value of the new DVD manufacturing project assuming 6. However, the revenue of the company will be reduced or even make significant loss.
Star River Electronics Ltd Case Study Solution and Case Analysis
This is due to inventory and accounts receivable making up a significantly larger portion of the current assets than cash and marketable securities. Digital Video Disks DVDs are expected to cut into the CD-ROM market in the very near future, but with 5% of their sales coming from this area. It has enjoyed a great deal of success in the past, due in large part to their excellent reputation for producing high-quality discs. Liquidity ratios are particularly interesting to short-term creditors and it is focus on current assets and current liability. Decision Regarding New Packing Equipment: The last request we addressed was to determine if the cost of waiting 3 years in investing in the new packaging equipment outweighed purchasing now. Decisions she had to make about the company's finances would have long-term ramifications. As the developing markets continued to grow, such as the gaming industry, these disks needed to be able to hold more gigabytes.
Another problem we found with their ratios is that they are having problems collecting on their receivables. Recommendations: Financial Changes: Equity Financing: We suggest that Star River Electronics Ltd. Case 2-Star River Electronics Ltd. Estimate Star River Electronics Ltd. However, according to research, this percentage would drop to 41% by 2005, while the DVD market share will rise to 59%. With more than 10 years experience, Stariver Electronic Technology set up to adapt to many varieties and small batch product design, production and service of the flexible system platform, the establishing of cooperation with about 1000 customers in more than 30 countries around the world.
Case Analysis of Star River Electronics Ltd. Essay Example
Therefore, Star River needs to consider the market change in order to avoid stock obsolescence. The new CEO of Star River Electronics, Adeline Koh, has requested historical data, as well as forecasting future values from assistant Andy Chin, to help assist her in various problems. SUMMARY Star River Electronics had been founded as a joint venture between Starlight Electronics Ltd. One of the more notable of these financing flaws is the drastic spikes in short term borrowings shown in the Lakeside Case Exercise Template Compute the financial ratios listed in Exhibit 3-2 for Lakeside for the years ended December 31, 2010 and December 31, 2011. Perform calculations that are relevant to understanding company performance and product 2. Investigate if Star River Electronics Ltd. Also, in forecasting the balance sheet, we only showed debt financing for the capital expenditure of the DVD manufacturing equipment, which was the requested structure.
The negative effect is especially felt on net income per share. For this, she asks the colleague a few pertinent questions about the business, which she then presents to the banker. Moreover, the current ratios were 0. It means that Star River must use other funds to facilitate growth, which will increase the financial risk. Any Bank will be very unlikely to provide any loan in this situation. Star River, with high Debt-To-Capital Ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk. What Nil be the external financing requirements of the firm in those years? In 2001, Star River's DVD sales accounted for less than 5% of total sales, a figure it aimed to raise in the future.
