Cango's Financial Analysis: League Of Legends

Online retailers or online company which is what CanGo is provides the power of online purchases from the comfort of the consumer homes and delivery to their doorstep. While doing some research, “In June 2009, a study by the Carnegie Mellon Green Design Institute in the US found that shopping online can reduce our environmental impact by as much as 66%.” For businesses like CanGo, the advantages of e-commerce lies mainly in the low cost setting up and maintaining the business.

Current ratio measures capability of a company to pay short-term or long-term obligations. (Current ratio, myaccountingcourse.com) The current ratio appraise a company capability by considers the total assets of a company relative to that company’s total liabilities. Grand Central Enterprise have the highest current ratio which is 14.89 times. Shangri-la Hotel got the lowest current ratio compare to its competitors which is 0.52 times. The current ratio of PAN MALAYSIA is in between Shangri-la Hotel and Grand Central Enterprise which is 9.24 times. Investors are able to understand the ability of a company to pay off its current liabilities through current ratio. A higher current ratio is more advantageous than a lower current ratio. This is because a higher current ratio always shows the company can more lightly to make current debt payments. So, Grand Central Enterprise had the better current ratio and this represent it had a better capability to make current debt payment.

Last year the League of Legends finals alone brought 40,000 people to Seoul, South Korea.(xx Pittsburgh Post-Gazette Paragraph 5) This isn’t counting the thousands at home who watched using streaming services. The teams also attract sponsors. The company DXRacer USA gave Robert Morris University a free chair which normally costs 349 dollars. Finally, eSports are one of the fastest growing sports ever. The quote, “The eSports scholarship program has been featured by ESPN, NPR, HBO’s ``Real Sports`` and a variety of other newsgroups.”, shows this. (xx Pittsburg Post and Gazette Paragraph 3) The only other sports to get this much attention to get this level of attention at the college level are men's basketball and men's football. Video games are fast on the rise in the world as the world moves toward a more technology dependent society. Estimates put video game spectators at 19.4 million by 2020.

CanGo currently operates primarily as an online retailer of books, compact discs, mp3 files, videos, and video game software. This configuration has allowed them to take advantage of internet marketing and expand their customer base worldwide. Despite the drawbacks of increased competition, overall growth in internet retail sales is projected to continue for many years to come, providing CanGo with ample opportunities for continued growth and expansion. The Forrester Research Firm projects that online sales in the U.S. alone will reach $248.7 billion by 2014, with an estimated increase of 10% in the five years following. ("The growth of,") Online sales in foreign markets will also continue to grow as internet technology expands into developing markets such

b. Your Quick Ratio fell below a 1 to .95. As a common rule of thumb, a quick ratio of greater than 1.0 means a company is sufficiently able to meet their short-term liabilities. With CanGo’s falling below this threshold, could be indicative that your over-leveraged, struggling to maintain or grow sales, paying bills too quickly, or collecting receivables too slowly. This ties into our comments above on yor efficiency ratio (Investigatinganswers, 2012).

CanGo’s Current Ratio is at 5.03x with Amazon at 1.12x and the industry average at 1.3x. This ratio shows that CanGo is far above the completion and the industry average and the ratio shows that CanGo has 5 dollars of assets to 1 dollar of liabilities. Their Quick Ratio for CanGo is at 4.23x where Amazon is at .74x and the industry average is .8x again showing CanGo high above the average and the competitors. This ratio is close to the same as the current ratio except that it excludes the inventory & prepaid expenses from the current assets. This ratio based on quick liquidity (Accounting Simplified,

Liquidity ratios show how well CanGo can pay its creditors as the debts come due.

To help CanGo better understand their financial condition, this section goes into details about the current financial condition of CanGo as well as give our recommendations for CanGo to better help them understand their financial position. This analysis will discuss the profitability, liquidity, efficiency, and debt ratios compared to its competitors. Knowing this will help CanGo make better financial decisions in the future.

The Los Angels based American professional soccer team is one of the most popular sport clubs worldwide. The club mainly earns its income from sponsorship, TV and other media rights and commercials. According to the Forbes report, the company is the second in MLS in terms of annual revenue ($44 million) and in franchise value ($240 million). Considering soccer isn’t the most view and played sport in North America, LA Galaxy has done a great job on gaining large market shares in the professional sports industry. In addition to producing marketing and selling unique products (entertainment) to its fans, the club makes a significant profit from other sporting commodities and sporting goods such as jerseys, soccer shoes, and other accessories.

Online sales from Cyber Monday, 2009 showed an increase of 14% over Cyber Monday, 2008 (CNN, 2009). If these instances are any indication, then CanGo should expect future increases as well, so long as their management team continues to remain focused on providing quality products and good customer service.

The current ratio measures a company’s ability to pay short-term and long-term obligations. This number is found by taking a company’s current assets and dividing it by current liabilities. Below are Walmart, Inc.’s and Costco Wholesale Corporation’s current ratio for the 2015 and 2016 fiscal year end. The industry average is also included for comparison.

Every ticket for the event "League of Legends, World Championship Finals" are sold out within a hour of them being released, making a profit of up to $1.6 billion in revenue in 2016. (1) With the Los Angeles' Staple Center should out and thousands of fans eager to watch the two final teams compete for the championship world cup and a price pool of $5.07 million; (2) e-sports are still not considered a sport by mainstream sport media when it should

Create stronger branding through nation-wide gaming tournaments with a focus on specific demographics, such as women or older adults. Most recently,

If this ratio is high means company owns too many debts which may decrease their

Technology is largely consumed by teenagers who don’t have money. It’s a privilege within itself to be able to have internet. For that reason, League of Legends is one of the most popular games out there because its FREE! It was published and developed by “Riot Games.” Riot Games was founded by Marc Merrill and Brandon Beck on September 2006, in Los Angeles, CA. “Riot was created with the intent of