Professional Documents
Culture Documents
Star River Excel
Star River Excel
Star River Excel
Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.
This Spreadsheet supports STUDENT analysis of the case, "Star River Electronics Ltd."
(Case 24)
14,305 19,519
6.7% of short term borrowings 6,753 5,791
7,552 13,728
24.5% of EBT 1,850 3,363
5,702 10,364
2,000 2,000
3,702 8,364
Exhibit 2
STAR RIVER ELECTRONICS LTD.
Assets:
Cash 4,816 5,670 6,090 5,795
Accounts receivable 22,148 25,364 28,078 35,486
Inventories 23,301 27,662 53,828 63,778
Total current assets 50,265 58,697 87,996 105,059
100,797 86,435
Average 13% of sales 15,853 18,231
Assuming 20,000 20,000 20,000
136,650 124,666
1998 1999
Profitability
Operating margin (%) 18.6% 18.6%
Tax rate (%) 27.9% 26.1%
Return on sales (%) 8.0% 8.2%
Return on equity (%) 16.7% 16.9%
Return on assets (%) 5.2% 5.2%
Leverage
Debt/equity ratio 1.13 1.21
Debt/total capital (%) 0.53 0.55
EBIT/interest (x) 2.45 2.48
Asset Utilization
Sales/assets 65.2% 64.0%
Sales growth rate (%) 15.0% 11.4%
Assets growth rate (%) 8.0% 13.5%
Days in receivables 112.4 115.6
Payables to COGS 36.5% 33.4%
Inventories to COGS 69.1% 72.1%
Liquidity
Current ratio 0.76 0.77
Quick ratio 0.41 0.41
ements
2000 2001
15.6% 16.1%
24.7% 22.6%
5.3% 6.7%
11.7% 15.2%
3.0% 3.9%
1.99 2.20
0.67 0.69
1.82 2.18
57.2% 57.4%
15.6% 14.5%
29.3% 14.2%
110.7 122.1
25.6% 25.0%
115.8% 119.3%
0.80 0.88
0.31 0.34
Exhibit 5
STAR RIVER ELECTRONICS LTD.
Data on Comparable Companies
Number of
% of Sales Market Shares 5-Year
from CD-ROM and/or Price/Earnings Book Book Value Price Outstanding Last Annual Earnings Growth
Name DVD Production Ratio Beta D/E per Share per Share (millions) Dividend Forecast
Sing Studios, Inc. 20% 9.0 1.07 0.23 1.24 1.37 9.3 1.82 4.0%
Wintronics, Inc. 95% NMF 1.56 1.70 1.46 6.39 177.2 0.15 15.7%
STOR-Max Corp. 90% 18.2 1.67 1.30 7.06 27.48 89.3 none 21.3%
Digital Media Corp. 30% 34.6 1.18 0.00 17.75 75.22 48.3 none 38.2%
Wymax, Inc. 60% NMF 1.52 0.40 6.95 22.19 371.2 1.57 11.3%
Note: NMF means not a meaningful figure. This arises when a company's earnings or projected earnings are negative.