While this case assumes that the cross-functional team visited five suppliers, organisations 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 case study Sparki mentioned via this info> Alset recognised as a well-established component and subsystem manufacturer, has grown from a single product manufacturer with annual sales of $2.3 million, to a multi-product $3.2 billion firm in just 15 years. If the SPARKi(introducing new phone) is successful, it is anticipated to increase the earnings of the business substantially, ultimately accounting for 25% of company revenue after consolidation of its current portfolio of manufactured products. Smartphone shipments are expected to grow 3.1% in 2022, which is a substantial slowdown from the 10.5% growth in 2020 and 27.8% in 2019. Shipments are expected to hit 1.48 billion in 2021 and grow to 1.84 billion by 2022. The actual demand for year one will likely be between 400,000 and 600,000 units. As with most high technology companies, adequate supplier capacity is a critical issue. Taking a lesson from the demands placed on it by its current customers, Alset will seek some assurance from its suppliers that they can increase the supply of components by 25% within four weeks' notice of changing market conditions. Marketing estimates that first year demand for the SPARKi, and therefore the data projector, would be approximately 500,000 units, with a 20% growth expected for year two. Expected pricing for the SPARKi will be around $1,700 to $1,900. Alset recognises that mini data projector demand is growing rapidly, although actual numbers are difficult to obtain. The latest figures show the market is $13 billion dollars in total, with a number of large players and then many small player. Marketing is now targeting the price of its SPARKi line from $1,750 including a quantity discount for large customers with ongoing high quantity orders, or up to $1,850 for additional storage and software configuration. Finance and Capital Development have reviewed the business case and determined that the total data projector cost component would need to be in the $140 - 160 range including logistics.

Inventory of at least 20,000 units must be received at the Wollongong factory by the 1st January 2024 for testing production in January for the February 2024 sales. 10,000 of the initial delivery will be used for making prototypes while the remainder will be held as buffer stock into the first month prior to the February delivery depending on the day that the first ongoing delivery comes in. The engineer estimated, based on previous experience, that the ramp-up time to begin production that would satisfy Alset's specifications would be about 15 weeks. His estimate of tooling costs was $2 million, although dependent upon the timing of the machine time; this could increase by up to 20% to take lost production into account. Suppliers:

Taegeuk Nangja: 12% of global market share FOB quoted price = $134 AUD, however quoted as currency in South Korean Won Ramp up time = 13 weeks Delivery lead time = 5 weeks (from time to order to day received) Line capacity = 12,000,000 units Current installed capacity for data projector production = 95% On-time delivery record = 98% on-time (for current customers) Quality = 8,000 defects ppm Minimum batch size = 10,000 units for mini container Currency denomination = South Korean Won Price basis = FOB = Free On Board Tooling cost = $1.1 million plus any extras deemed required on final contract Payment Terms - payment on Bill Of Lading (prior to departure of ship) - approx 4 weeks prior to delivery Relevant Alset data specific to Taegeuk Nangja include: Frequency of Shipment = four weekly Estimated day of arrival = Every Fourth Monday Ordering cost per order = $750 due to needing all paperwork and individual orders prior to shipment Receiving cost per delivery = $550 for unloading container and inspection Sea transport (ship) = $38,500 per batch in mini container Land transport (truck) = $7,000 per batch in mini container including load / unload and transport from Sydney to Wollongong Duties / customs / tariffs = $31,000 per batch in mini container Insurance = $19,800 per batch in mini container Financing Cost = Total Cost of Units X 4 weeks / 52 weeks X 4% since Alset will pay for the items 4 weeks prior to receipt in store It must be noted that regional instabilities between South Korea and North Korea pose a threat to international sourcing as there is potential political and economic risks with region predicted within the next two years. FernFuel: DAT quoted price = $143 per unit Ramp up time = conservatively 3 months Delivery lead time = 2 weeks (from time of order to day received) Current utilised capacity = 83% Current installed capacity = 4 million On-time delivery record = 93.5% on-time (but measured as DIFOTIS) Quality = from experience 13,000 defects ppm as a maximum on any initial orders, with any issues usually attributed to tooling aspects that would be worked out within the first month during pilot testing, dropping to well less of this ongoing Minimum batch size = 4,000 units for optimizing transport options on a purpose designed pallet, which could be recycled and reused Price basis = DAT = Delivered at Terminal to Sydney (Port Botany), with customs and duties payable, expected to be low Tooling cost = $1,655,000 as a maximum, downside to budget maximum to Alset through an open book arrangement Relevant Alset data specific to FernFuel include: Frequency of Shipment = Fortnightly Estimated day of arrival = Every second Thursday Ordering cost per order = $160 due to individual purchase orders fortnightly Receiving cost per delivery = $160 for unloading container and inspection Land transport (truck Sydney to Wollongong direct) = $2,600 each pallet including load / unload and return transport of the pallets Insurance = $0.14 per unit while in transit, including the pallets Duties / customs / tariffs = $0.68 per unit - due to the lower tariffs paid on New Zealand goods and lower customs clearance due to the pallet design NADESHIKO TECH: Nadeshiko Tech, located in Hitachi, Japan, just over 100km from Tokyo, where over thirteen million people live, was the largest supplier the team visited (sales of $5.602 billion). Data projector's represent a large segment of Nadeshiko Tech's production (Nadeshiko Tech commits 75% of total capacity to data projector production and derives 75% of its revenues from data projectors). FAS quoted price = 11,586.34Yen. Today conversion rate is 94.97JPY to 1AUD Ramp up time = 15 weeks Delivery lead time = 6 weeks (from time of order to day received) Current installed capacity for data projector production = 84% Market Share = 32.82% Plant Installed Capacity = 41,000,000 units On-time delivery record = 95.5% on-time (for large customers, somewhat less for smaller customers) Quality = 12,000 defects ppm Minimum batch size = 20,000 units for container Currency denomination = Yen Price basis = FAS = Free alongside ship Payment Terms - payment on Bill Of Lading (prior to departure of ship) - approx 4 weeks prior to delivery Tooling cost = $2,000,000 Australian dollars equivalent, however could incur lost production costs additional to this Relevant Alset data specific to Nadeshiko Tech include: Frequency of Shipment = monthly Estimated day of arrival = first working day of month Ordering cost per order = $750 due to needing all paperwork and individual orders prior to shipment Receiving cost per delivery = $1,100 for unloading container and inspection Sea transport (ship) = $88,000 per container (includes labour to pack and load ship with the dunnage provided) Land transport (truck) = $16,000 per container including load / unload and transport from Sydney to Wollongong Duties / customs / tariffs = $56,000 per container Insurance = $1.82 per unit Financing Cost = Total Cost of Units X 4 weeks / 52 weeks X 4% since Alset will pay for the items 4 weeks prior to receipt in store

Matildas: FIS quoted price = $149 per unit Ramp up time = 8 weeks Delivery lead time = 1 weeks (for initial order, then on a weekly rolling forecast but could delivery with a days notice where required). They explained that much of the tooling time and ramp up time was reduced allowing more testing during the first week Frequency of Shipment = daily Estimated day of arrival = Any weekday, 9am - 10am Plant capacity = 9 million units per annum Current operating capacity = 92% On-time delivery record = 99.95% on-time Quality = recent performance 9,500 defects ppm as a historical high Minimum batch size = 1 unit - due to being so close and having their own courier system, they could deliver any number per day Price basis = FIS = Free In-store - unloaded Tooling cost = $1,800,000 Payment terms = monthly - pay on the last day of the month for all deliveries that month Relevant Alset data specific to Matildas include: Ordering cost = $1,800 as a total for the two years as a blanket order and monthly invoicing Receiving cost per delivery = $200 per month for inspection (25 months of deliveries) Financing cost = not required as payment would be after receipt of the items during the month Crypto Technologies Relevant Crypto Technologies data from their tender response include: FOB quoted price = $105 AUD quoted at 4.39172cyn to $1AUD Ramp up time = 3 months Delivery lead time = 4 weeks (from time to order to day received) Current installed capacity for data projector production = 50% On-time delivery record = 99% on-time (for China customers) Quality = 1,000 defects ppm Minimum batch size = 10,000 units for mini container Currency denomination = cyn Price basis = FOB = Free On Board Tooling cost = $1.4 million - to be paid upfront Relevant Alset data specific to Crypto Technologies include: Frequency of Shipment = four weekly Estimated day of arrival = Every Fourth Friday Ordering cost per order = $750 due to needing all paperwork and individual orders prior to shipment Receiving cost per delivery = $550 for unloading container and inspection Sea transport (ship) = $38,500 per batch in mini container Land transport (truck) = $7,500 per batch in mini container including load / unload and transport from Sydney to Wollongong Duties / customs / tariffs = $29,500 per batch in mini container Insurance = $15,720 per batch in mini container Financing Cost = Total Cost of Units X 4 weeks / 52 weeks X 4% since Alset will pay for the items 4 weeks prior to receipt in store.

by using the following rules. Which data to include here from the case study sparki? how to calculate. please show example.

Selected Financial Ratios

Market Share

Asset Utilization:

Asset Turnover = Sales/Assets

Inventory Turnover = Cost of Goods Sold/Average Inventory

Receivable Days = Accounts Receivable/Sales X 365

Payable Days = Accounts Payable/Sales X 365

Capitalization:

Quick Ratio = (Cash + Market Securities + Accounts Receivable)/ Current Liabilities

Leverage = Assets/Equity

Current Ratio = Current Assets/Current Liabilities

Return on Equity = Net Income/Equity

Long-term Debt to Equity = Long-term Debt/Equity

Interest Coverage Ratio = Earnings Before Interest and Taxes/Interest Expenses

Profitability Ratios:

Contribution Margin = (Sales - Variable Cost)/Sales

Profit Margin = Net Income/Sales