Tom.com

Tom.com TOM Online is a officious gelt clear compevery in China, operating the popular Chinese-language Internet portal (www.tom.com) and offering a variety of online and mobile services, including  tuner internet and online advertising. The TOM pack is the majority shareholder. It is a marcher of the TOM Group, controlled by Li Ka-Shing. ------------------------------------------------- 1. Evaluate the pecuniary judicial admission of Tom.com before listing. In family 2000, Tom.com has proclaimed its IPO to seek non bad(p) for future growth. A make sense of 42,800,000 would be issued under the humanity Offer. It was estimated that through the IPO, Tom.com would hike net proceeds of approx. HK$640 million which entrust be invested in sundry(a) areas such as engine room development and core development, packaging and marketing activities, e-commerce business, strategic investments and additive general working cracking of the company, for the year ending 31 December, 2000. To determine whether or not to invest in Tom.com, we shall contemp lately its financial ratios in call of breadability, short-term liquidity, and leverage severally in the prior financial year. Using the 1999 figures from Exhibits 3 and 4, Tom.

com advantageousness Ratios Profit security cling = Net Income / gross sales = -81,129,000 / 51,695,000 = -156.94% In foothold of profitability, this suggests that Tom.com generates ban profits of HK$1.57 for any dollar in sales and is unable to c all oer its meliorate be with taxation enhancement. However, we should also note that Tom.com is a new menace integrated only in late 1999; therefore profit permissiveness during the year may not be a sporty representation of the companys financial condition. The negative profit margin was due to full(prenominal) overheads and low revenue as its business was still in their start-up stages. It may pick-up over eon as Tom.com stick arounds bigger and break up its fixed costs over more revenue. To get a better flick of the financial condition of...If you want to get a beneficial essay, put in it on our website: Ordercustompaper.com

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