What are the main points?

1. What are the issues in this case? In what order should they be addressed?

2. Compute 6 ratios from 2013-2014 What is your assessment of historical performance?

3. Can Star River repay the bank loan?

Financial Questions Facing Adeline Koh That evening. Kot met with Amby Chis promising wanciate when she had brought along from New Era Partner Kohl bied with was follow forect performance de Gebelikoperasi 25.1) december (22) for at for years. The role of the to, they lookedly Salpete. Fremmedsed 2011 LO Limbili 2015 21 S La Page 103 ASE 25 Star River Electronics Ltd. On July 5, 2015, her first day as CEO of Star River Electronics Lad.. Adeline Koh confronted a host of management problems. One week earlier, Star River's president and CEO lad suddenly resigned to accept a CEO position with another fimm. Koh had been appointed to fill the position-starting immediately. Several items in her in-box that first day wete financial in nature, either requiring a financial decision or with outcomes that would have major financial implications for the firm That evening. Kob asked to meet with her assistant Andy Chin, to begin addressing the most prominent issues Star River Electronics and the Optical-Disc-Manufacturing Industry Star River Electronics had been founded as a joint venture between Starlight Electrotcs Lad, United Kingdom and an Asian venture capital firm. New Era Partners. Based in Singapore, Star River had a single business mission to manufacture high-quality optical discs as a supplier to movie studies and video game producers When originally founded, Star River gained recognition for its production of compact discs (CD), which were primarily used in the music recording industry and as data storage for personal computers. As technological advances in disc storage and the movie and video game markets began to grow. Sur River switched most of its production capacity to manufacturing DVD and Blu-ray discs and became one of the leading suppliers in the optical-disc-manufacturing industry, Storage media lud proven to be a challenging industry for munufacturers. The adient of the CD was the beginning of the optical storage medin industry, which used laser light to read data, rather than reading data from an electromagnetic tape, such as a cassette tape. In the mid-1990s the CD replaced cassette tapes and became the standard media for music CDs were also widely used for data storage in personal computers. What followed was a rapid yowth in demand and production of CD discs that led to drumutic cost savings former Page 304 and tightening margins for manufacturers Manufacturers struggled to keep pace with changing formats and quality enhancements that required substantial capital investments. As peices fell, many of the smaller producers failed or were acquired by larger, more cost-efficient competitors While CDs continued to be used by the music industry, the movie and video game industry required a much higher data density, which resulted in the development of the DVD (digital versatile disc). A DVD held 4.7 gigabytes (GB) of data compared to a CD with a capacity of 0.7 GB. As the entertainment industry evolved toward high-definition video, the Blu-ray format emerged as the standard video format because it offered up to 50 GB of capacity Star River Electronics was one of the few CD manufacturers that had been able to survive the many shakeouts created by the technological imovations in the industry. The challenge in 2015 for all dise mumifacturers was the movement of music and video entertainment to online data streaming Despite this challenge, however, Sur River's volume sales had grown at a robust rate over the past two years. Sales to North America had suffered, but sales to emerging market countries had more than compensated. Unit prices had declined because of price competitive and the growing popularity of streaming. Many industry experts were predicting declining demand and further compression in murgin in the CD and DVDstents, but stable- rising demand for Blu-ray discs over the next few years. Star River management believed that with its continued investment in production efficiency, the company was well positioned to grow its Blu-ray revemos enough to offset the continuing declines in its DVD and CD revenues over the next three to five years in dod for trade tenim. Sumir twice i produse dewe vitset the times and we Financial Questions Facing Adeline koh There will De ! ATOM Financial Questions Facing Adeline Koh That evening. Kot met with Amby Chis promising wanciate when she had brought along from New Era Partner Kohl bied with was follow forect performance de Gebelikoperasi 25.1) december (22) for at for years. The role of the to, they lookedly Salpete. Fremmedsed 2011 LO Limbili 2015 21 S La Page 103 ASE 25 Star River Electronics Ltd. On July 5, 2015, her first day as CEO of Star River Electronics Lad.. Adeline Koh confronted a host of management problems. One week earlier, Star River's president and CEO lad suddenly resigned to accept a CEO position with another fimm. Koh had been appointed to fill the position-starting immediately. Several items in her in-box that first day wete financial in nature, either requiring a financial decision or with outcomes that would have major financial implications for the firm That evening. Kob asked to meet with her assistant Andy Chin, to begin addressing the most prominent issues Star River Electronics and the Optical-Disc-Manufacturing Industry Star River Electronics had been founded as a joint venture between Starlight Electrotcs Lad, United Kingdom and an Asian venture capital firm. New Era Partners. Based in Singapore, Star River had a single business mission to manufacture high-quality optical discs as a supplier to movie studies and video game producers When originally founded, Star River gained recognition for its production of compact discs (CD), which were primarily used in the music recording industry and as data storage for personal computers. As technological advances in disc storage and the movie and video game markets began to grow. Sur River switched most of its production capacity to manufacturing DVD and Blu-ray discs and became one of the leading suppliers in the optical-disc-manufacturing industry, Storage media lud proven to be a challenging industry for munufacturers. The adient of the CD was the beginning of the optical storage medin industry, which used laser light to read data, rather than reading data from an electromagnetic tape, such as a cassette tape. In the mid-1990s the CD replaced cassette tapes and became the standard media for music CDs were also widely used for data storage in personal computers. What followed was a rapid yowth in demand and production of CD discs that led to drumutic cost savings former Page 304 and tightening margins for manufacturers Manufacturers struggled to keep pace with changing formats and quality enhancements that required substantial capital investments. As peices fell, many of the smaller producers failed or were acquired by larger, more cost-efficient competitors While CDs continued to be used by the music industry, the movie and video game industry required a much higher data density, which resulted in the development of the DVD (digital versatile disc). A DVD held 4.7 gigabytes (GB) of data compared to a CD with a capacity of 0.7 GB. As the entertainment industry evolved toward high-definition video, the Blu-ray format emerged as the standard video format because it offered up to 50 GB of capacity Star River Electronics was one of the few CD manufacturers that had been able to survive the many shakeouts created by the technological imovations in the industry. The challenge in 2015 for all dise mumifacturers was the movement of music and video entertainment to online data streaming Despite this challenge, however, Sur River's volume sales had grown at a robust rate over the past two years. Sales to North America had suffered, but sales to emerging market countries had more than compensated. Unit prices had declined because of price competitive and the growing popularity of streaming. Many industry experts were predicting declining demand and further compression in murgin in the CD and DVDstents, but stable- rising demand for Blu-ray discs over the next few years. Star River management believed that with its continued investment in production efficiency, the company was well positioned to grow its Blu-ray revemos enough to offset the continuing declines in its DVD and CD revenues over the next three to five years in dod for trade tenim. Sumir twice i produse dewe vitset the times and we Financial Questions Facing Adeline koh There will De ! ATOM