Tom.com

Tom.com TOM Online is a mobile Inter shekels social club in China, operating the popular Chinese-language Internet portal (www.tom.com) and offering a variety of online and mobile services, including wireless internet and online advertising. The TOM masses is the majority shareholder. It is a subsidiary of the TOM Group, controlled by Li Ka-Shing. ------------------------------------------------- 1. Evaluate the financial condition of Tom.com before listing. In family 2000, Tom.com has announced its IPO to seek detonator for future growth. A congeries of 42,800,000 would be issued under the Public Offer. It was estimated that through the IPO, Tom.com would hike net proceeds of approx. HK$640 million which will be invested in various areas such as technology development and core development, promotional material and marketing activities, e-commerce business, strategic investments and additional general working capital of the company, for the year ending 31 December, 2000. To determine whether or non to invest in Tom.com, we shall analyse its financial ratios in terms of breadability, short-term liquidity, and leverage respectively in the prior fiscal year. Using the 1999 figures from Exhibits 3 and 4, Tom.com Profitability Ratios Profit security ready = Net Income / sales = -81,129,000 / 51,695,000 = -156.94% In terms of profitability, this suggests that Tom.com generates ban profit of HK$1.57 for any dollar in sales and is unable to c everyplace its meliorate be with revenue enhancement. However, we should also honor that Tom.com is a new menace incorporated only in late 1999; therefore profit margin during the year whitethorn not be a fair representation of the companys financial condition. The negative profit margin was delinquent to high overheads and low revenue as its business was quiet down in their start-up stages. It may pick-up over time as T om.com chokes big and spread its fixed cos! ts over more revenue. To get a better flick of the financial condition of...If you compliments to get a beneficial essay, order it on our website: OrderEssay.net

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