罗兰贝教材格-财务及组织分析报告.ppt

SHA-4309-03690-08-15c.PPT C. Financial, organization and processes analysis C1. Financial situation analysis C1.1 Geberit Shanghai Presently, GSHA is in serious corporate crisis All liabilities are short term and are increasing 4-fold. By the end of July 2000, liabilities are 75% of total assets Companys liquidity situation is deteriorating. Current liabilities are increasing much faster than current assets, the cash injection from the parent company is used to cover the running expenses in stead of building up assets The company’s inventory increased by 91% , while current assets increased by 37% Due to huge losses, the company is solely financed by inter-company loans, the liabilities increase much far faster than assets The accumulated losses till September 2000 are 86% of share capital. Left alone the company will be insolvent by the end of this year The company has been losing money since the foundation of JV, and the loss is continuously increasing in spite of the increase of sales More than 70% of products sold in 2000 ( 1-9 ), including Geberit locally produced products, have a negative gross profit margin The disproportional increase of operating expense results in the increase of operating loss in spite of the improvement of product mix Among the cost of goods sold, cost of materials and labor are two major cost drivers And among the sales cost, salaries and travelling are two major cost drivers. Meanwhile, promotion fees and staff training cost increase Increase operating expenses results in increase of operating losses in spite of the improvement of sales The company can not generate enough cash from business operations and it solely relies on the continuous cash injection from the parent company for survival C1.2. Geberit Daishan GDAI’s sales have continuously improved, and cost are reducing; the inter-company sales increased much faster than to third party GDAI’s operating losses are decreasing due to reduction of costs As a result