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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 26).
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
Leverage
Debt/equity ratio 1.13 1.21 1.99
Debt/total capital (%) 0.53 0.55 0.67
EBIT/interest (x) 2.45 2.48 1.82
Asset Utilization
Sales/assets 65.2% 64.0% 57.2%
Sales growth rate (%) 15.0% 11.4% 15.6%
Assets growth rate (%) 8.0% 13.5% 29.3%
Days in receivables 112.4 115.6 110.7
Payables to COGS 36.5% 33.4% 25.6%
Inventories to COGS 69.1% 72.1% 115.8%
Liquidity
Current ratio 0.76 0.77 0.80
Quick ratio 0.41 0.41 0.31
2001
16.1%
22.6%
6.7%
15.2%
3.9%
2.20
0.69
2.18
57.4%
14.5%
14.2%
122.1
25.0%
119.3%
0.88
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.