Alset is a company which is planning to introduce a new phone Sparki. For this purpose it needs suppliers. While this case assumes that the cross-functional team visited five suppliers, organizations often perform a preliminary financial risk analysis to identify the suppliers that may not warrant further consideration due to excessive financial risk.  Conduct a preliminary financial analysis from the data given below. Which supplier should be selected?

 

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1 2 Selected Financial Ratios 3 Market Share 4 Asset Utilization: 5 Asset Turnover 6 Inventory Turnover 7 Receivable Days 8 Payable Days 9 Capitalization: 10 Quick Ratio 11 Leverage 12 Current Ratio 13 Return on Equity 14 Long-term Debt to Equity 15 Interest Coverage Ratio 16 Profitability Ratios: 17 Contribution Margin 18 Profit Margin Taegeuk Nangja 1.73 8.43 31.07days 38.14days 0.6 2.15 1.13 1.70% 0.3 0.22 15.07% 0.46% FernFuel 1.83 4.83 40.86days 57.32days 0.9 1.83 1.25 37.32% 0.08 12.5 31.16% 11.16% Nadeshioko Tech 1.25 9.83 58.24days 69.74days 0.69 2.22 1.15 7.24% 0.43 0.42 20% 2.61% Matildas 1.5 4.06 68.4days 48.63days 1.02 2.21 1.34 24.12% 0.32 2.1 32.88% 7.30% 1 2 Selected Financial Ratios 3 Market Share 4 Asset Utilization: 5 Asset Turnover 6 Inventory Turnover 7 Receivable Days 8 Payable Days 9 Capitalization: 10 Quick Ratio 11 Leverage 12 Current Ratio 13 Return on Equity 14 Long-term Debt to Equity 15 Interest Coverage Ratio 16 Profitability Ratios: 17 Contribution Margin 18 Profit Margin Taegeuk Nangja 1.73 8.43 31.07days 38.14days 0.6 2.15 1.13 1.70% 0.3 0.22 15.07% 0.46% FernFuel 1.83 4.83 40.86days 57.32days 0.9 1.83 1.25 37.32% 0.08 12.5 31.16% 11.16% Nadeshioko Tech 1.25 9.83 58.24days 69.74days 0.69 2.22 1.15 7.24% 0.43 0.42 20% 2.61% Matildas 1.5 4.06 68.4days 48.63days 1.02 2.21 1.34 24.12% 0.32 2.1 32.88% 7.30%

Answer rating: 100% (QA)

To conduct a preliminary financial analysis for selecting a supplier for Alsets new phone Sparki you ... View the full answer