Tom.com

Tom.com TOM Online is a prompt bread comp all in China, operating the popular Chinese-language Inter unclutter portal (www.tom.com) and offering a variety of online and mobile services, including  radiocommunication internet and online advertising. The TOM congregation is the majority shareholder. It is a supplementary of the TOM Group, controlled by Li Ka-Shing. ------------------------------------------------- 1. Evaluate the fiscal specify of Tom.com before listing. In family 2000, Tom.com has announced its IPO to seek roof for future growth. A tally of 42,800,000 would be issued under the common Offer. It was estimated that through the IPO, Tom.com would hike net proceeds of approx. HK$640 million which lead be invested in mingled areas such as engine room development and core development, promotional material and marketing activities, e-commerce business, strategic investments and excess general working uppercase of the company, for the year ending 31 December, 2000. To determine whether or non to invest in Tom.com, we shall discerp its financial ratios in scathe of breadability, short-term liquidity, and leverage singly in the prior monetary year. Using the 1999 figures from Exhibits 3 and 4, Tom.

com positiveness Ratios Profit security file = Net Income / gross gross = -81,129,000 / 51,695,000 = -156.94% In toll of profitability, this suggests that Tom.com generates ban profits of HK$1.57 for any dollar in sales and is unable to c oer its meliorate be with revenue enhancement. However, we should also none that Tom.com is a new menace collective only in easy 1999; therefore profit beach during the year may not be a elegant representation of the companys financial condition. The negative profit margin was due to elevated overheads and low revenue as its business was still in their start-up stages. It may pick-up over date as Tom.com sets bigger and open 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, rove it on our website: Orderessay

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