Star River Electronics Essay

1033 words - 5 pages

Star River Electronics LTD: Case Analysis
Star River Electronics LTD: Case Analysis

Executive Summary

Star River Electronics Ltd. is a large manufacturer and supplier of CD-ROMS based in Singapore founded from a joint venture between Asian firm New Era Partners and Starlight Electronics Ltd, UK. Star River is recognised in the CD-ROM manufacturing industry for producing high quality disks. A study however showed that DVD’s would bypass CDs within six years. Despite volume sales for Star River growing at a rapid rate, unit prices have declined due to price competition of substitute storage devices such as DVDs. DVDs have 14 times more storage capacity than CD-ROMS therefor CEO Koh ...view middle of the document...

Exhibit 1 shows a significant drop in operating margins in 2000 which seems to be a result of 21% increase in production costs and 20% increase in admin expenses. One of the main issues seems to be a 95% increase in inventory, which appears to have been financed through debt as the debt/equity ratio increased from 1.13 to 1.99 over the three years.
Star River seems to have issues collecting payments from their customers as the A/R remains high. They should certainly spend some time collecting bills and then using the cash to pay off short-term debts which have increased the interest expense dramatically.
Since 1998, Star River’s ROA decreased by 6.9% which means that they are not using their assets efficiently. The current and quick ratios indicate that there may be cash-flow problems in the future as the firm’s accounts payable and receivable have both been increasing which is most likely the reason for increased borrowing. Despite the high level of debt, Star River continues to issue dividends to its shareholders instead of paying off some of its debt or accounts payable.
A major weakness for the company is that they need to borrow money to currently operate, current cash flows are unable to handle the daily financial needs of the company. As the banker stated in the case “the firm is growing beyond its financial capabilities” and overall the company’s financial position is weak and could become even weaker if they decide to borrow more money for the new equipment.

Using the percent-of-sales method the financial forecasts for 2002 and 2003 are shown in Exhibit A. Using various assumptions from the previous three years, table A shows the percentages that were used to forecast the following years.
Whilst maintaining levels of operating efficiency, depreciation and purchasing new equipment, they will require additional funds in the order of SGD 10million for 2002 and SGD 21million for 2003. This means that Star River Electronics cannot pay off its loan in a reasonable period.

Inventory levels are a...

Capstone Part 2 Essay

4410 words - 18 pages filters the wall power through the battery system (How to Select a Battery Back for your Computer, n.d.). Because the attached electronics run completely off the battery bank (which is being perpetually topped off by the external power supply) there is never a single millisecond of power interruption when there is power loss or voltage regulation issues. The Online UPS unit then, is effectively an electronic firewall between your devices and the

Principles of Information Security Essay

3241 words - 13 pages , 1998, preface. 27. Pipkin, D.L. Information Security: Protecting the Global Enterprise. Upper Saddle River, NJ: Prentice Hall, 2000, 256. 28. Witty, Roberta. “What is Crisis Management?” Gartner Online. 19 September 2001. Accessed 30 April 2007 from www.gartner.com/DisplayDocument?id=340971. 29. NIST. “Special Publication 800-12: An Introduction to Computer Security: The NIST Handbook.” October 1995. Accessed 30 April 2007 from csrc.nist.gov

Principles Of Information Security

3291 words - 14 pages /nistpubs/800-34/ sp800-34.pdf. 25. Krutz, Ronald L., and Vines, Russell Dean. The CISSP Prep Guide: Mastering the Ten Domains of Computer Security. New York: John Wiley and Sons Inc., 2001, 288. 26. Marcinko, Richard, and Weisman, John. Designation Gold. New York: Pocket Books, 1998, preface. 27. Pipkin, D.L. Information Security: Protecting the Global Enterprise. Upper Saddle River, NJ: Prentice Hall, 2000, 256. 28. Witty, Roberta. “What is

Computer System Security

Freedom And Responsibility

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages the new millennium: A cross cultural approach. Journal of Rational-Emotive & Cognitive-Behavior Therapy, 19 (4). 201-222. Minor, J. (2007). Some reasons why I use REBT in my private practice and personal life. Et Cetera, 64 (4), 320-323. Murdock, N.L. (2009). Theories of counseling and psychotherapy: A case approach (2nd ed.). Upper Saddle River, NJ: Merrill-Pearson. Ziegler, D.J. (2000). Basic assumptions concerning human nature underlying rational emotive behavior therapy (REBT) personality theory. Journal of Rational-Emotive & Cognitive-Behavior Therapy, 18 (2), 67-85.

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages emphasizing the two images of Kurtz: a barbarous and savage man of an uncivilized society vs. refined gentlemen from civilized Europe. The manager of the ivory company in Africa is essentially the scoundrel of the plot. He is the dark force indirectly responsible for the corruption and decadence in the Congo. Setting is also relevant to the overall theme of the novel. As the plot opens up, Marlow begins to compare the Thames River to the Congo. He

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

Star River Essay

904 words - 4 pages Star River Electronics, Ltd., located in Singapore, was founded as a joint venture company and quickly became a leader in producing high-end CD-ROMs, which was their main product. On July 5, 2001, Star River’s current CEO resigned, and the company brought Adeline Koh to be the replacement. Star River was facing both a change in leadership, but also a shift in the market/consumer desires. Based off the scenario and circumstances previously listed

Segmentation And Target Market Essay

1507 words - 7 pages target market or focus for this company is supplying the small- to medium-sized business, and targets the middle- to high-end consumer with its private label brand Kirkland Signature. Categories of products currently include major appliances, furniture, electronics, luxury items, special events, seasonal items, hardware, sporting goods, housewares, apparel, health and beauty products, jewelry, tobacco, alcohol, apparel, office supplies and

Bla In The Future In The Blo

1521 words - 7 pages Asia Unit Swings to 2011 Loss Q Goldman's Secret Loan to Greece Q AIG Gains Buyback Flexibility With AIA Sale Q More Top News Las Vegas Sands Corp. Chairman and CEO Adelson Adelson Fortune Tumbles on Slow China Growth Q The Samsung Electronics Co. OLED 55-Inch Television Samsung-LG TVs Thinner Than IPad Undermine Rivals Q The Top Ten: Today's Most Important Stocks 4:19 The Top Ten: Today’s Most Important Stocks

France Footprint Essay

2739 words - 11 pages particular matter. Also, the apartments come with a fridge already and it is not an Energy Star fridge which would also help energy costs and lowering the carbon footprints. Individual Carbon Footprint A carbon footprint is a unit of measurement for the total amount of CO2 within specific places and includes greenhouse gases that are created by fossil fuel transportation vehicles. It measures the square footage of a certain area and the