Question: Taiwan Mobile Co . , Ltd . has a moderate liquidity position, comparable to Far EasTone Telecommunications but significantly weaker than Chunghwa Telecom. To improve
Taiwan Mobile Co Ltd has a moderate liquidity position, comparable to Far EasTone Telecommunications but significantly weaker than Chunghwa Telecom. To improve its financial resilience, the company should aim to enhance its cash reserves or reduce shortterm liabilities, especially to match industry leaders like Chunghwa Telecom.
Taiwan Mobile Co Ltd has the highest total debt ratio among its peers, indicating greater financial leverage and risk exposure. While this strategy might enhance returns during periods of growth, it also places the company at greater financial risk compared to Chunghwa Telecoms conservative debt ratio. Taiwan Mobile should consider reducing its reliance on debt to strengthen its financial position and better align with industry norms.
Taiwan Mobile Co Ltd demonstrated strong performance in inventory turnover with a ratio of indicating efficient inventory management and competitive alignment with industry standards. Far EasTone Telecommunications Co Ltd achieved the highest turnover ratio of reflecting slightly superior efficiency in inventory movement and cost control, while Chunghwa Telecom Co Ltd reported a significantly lower turnover ratio of suggesting slower inventory movement and potential risks of overstock or obsolescence.
Taiwan Mobile Co Ltd reported a profit margin of the lowest among the three firms, indicating challenges in converting revenue into profit due to higher costs or lower efficiency. Far EasTone Telecommunications Co Ltd achieved a profit margin of reflecting moderate profitability and better cost management relative to its revenue. Chunghwa Telecom Co Ltd led with a profit margin of demonstrating exceptional efficiency and profitability. Taiwan Mobiles lower performance highlights the need for cost optimization and strategic initiatives to improve profitability and competitiveness compared to its peers.
Taiwan Mobile Co Ltds PE ratio of is slightly lower than its peers, Far EasTone and Chunghwa Telecom While this may indicate undervaluation, it also reflects lower market expectations or higher perceived risks. Taiwan Mobile can work on enhancing its growth outlook and financial stability to align its valuation with its competitors.
Taiwan Mobile Co Ltd achieves the highest ROE among its peers by effectively leveraging its assets, though its profitability Profit Margin is lower. Far EasTone Telecommunications Co Ltd has a slightly lower ROE driven by a stronger Profit Margin but offset by lower Asset Turnover. Chunghwa Telecom Co Ltd despite having the strongest Profit Margin and lowest financial risk low Equity Multiplier has the lowest ROE due to its weak Asset Turnover.
State your own analysis about the company that you choose Taiwan Mobile Co Ltd by using the comprehensive information including the financial statement, the ratio analysis, etc.
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