Tom.com

Tom.com TOM Online is a mobile Inter earnings partnership in China, operating the popular Chinese-language Internet portal (www.tom.com) and offering a variety of online and mobile services, including wireless internet and online advertising. The TOM concourse is the majority shareholder. It is a subsidiary of the TOM Group, controlled by Li Ka-Shing. ------------------------------------------------- 1. Evaluate the financial condition of Tom.com before listing. In family 2000, Tom.com has announce its IPO to seek non bad(p) for future growth. A intact of 42,800,000 would be issued under the Public Offer. It was estimated that through the IPO, Tom.com would hike net proceeds of approx. HK$640 million which will be invested in various areas such as technology development and core development, forward motion and marketing activities, e-commerce business, strategic investments and additional general working capital of the company, for the year ending 31 Dec ember, 2000. To determine whether or not to invest in Tom.com, we shall analyse its financial ratios in footing of breadability, short-term liquidity, and leverage respectively in the prior fiscal year. Using the 1999 figures from Exhibits 3 and 4, Tom.

com Profitability Ratios Profit security squeeze = Net Income / sales = -81,129,000 / 51,695,000 = -156.94% In terms of profitability, this suggests that Tom.com generates ban salary of HK$1.57 for any dollar in sales and is unable to c everyplace its meliorate be with revenue enhancement. However, we should also timber that Tom.com is a new menace incorporated on ly in late 1999; therefore profit margin dur! ing the year whitethorn not be a fair representation of the companys financial condition. The negative profit margin was collectable to high overheads and low revenue as its business was unflustered in their start-up stages. It may pick-up over time as Tom.com hires large and spread its fixed costs over more revenue. To get a better flick of the financial condition of...If you call for to get a beneficial essay, order it on our website: OrderEssay.net

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