dc.description.abstract | The article is intended to use financial ratio to explore business performances and future operating strategies in the connector industry for case study.
Because of the fierce competition among the companies and China’’s economic liberalization, state-owned connector factories are growing at such a rapid pace that many of them have already reached a relatively high degree of production dimension. The chance of winning the competition against the state-owned companies is going to be really small if we just use simple strategies. Therefore, the goal of this experiment is to find out a successful method by using multiple financial indexes, not only to evaluate the business performances of Taiwan Connector industry, but also to explore what each company should do to find out the financial strategy for the next 5 to 10 years. According to following data:
1. Analyze how the changes of outside environment and company’s internal resources can influence case companies.
2. Observe the differences in the static financial statement of Taiwan Connector industry within the past 5 years. (2007-2011)
3. Observe the changes between Taiwan Connector companies and each company financial performance trend from 2007 to 2011.
4. Discuss the messages about managing and competing that are revealed by the financial information and give the suggestion for the betterment of the future performance of the Taiwan Connector companies
This research compares the four main manufactories that mainly sell and produce PC and NB computers’ Inside Connector: BTB, FPC, and WTB. There is a high degree of competitiveness and comparability between those four factories. Therefore, managers have to consider companies profit ability, financial position, business condition and any serious change matters to analyze the three main structures: sales and profit, debt paying ability and operating ability of the business. The result of this study discovers that the case company’s sales and profit, and debt paying ability are better than most of the other companies within the same industry. However, it has disadvantages in inventory turnover ratio, fixed asset turnover ratio and total asset turnover ratio compared to the same type of companies. In conclusion, the case company needs to get help from the automatic production process integration ability to reduce the safety stock days, sell the low efficient model or fix assets, in order to effectively lower the operating cost.
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