In conclusion I recommend we expand to Hong Kong with our newest acquisition Yammer.
When we look at the financial health of the company and our current ratio is 2.50 meaning for every dollar the company owes it has $2.50 of assets, and the quick ratio is 2.44. These are huge and strong ratios and the main reason I know the company can expand its operations overseas with this new product. The tax situation is Hong Kong is very attractive to all types of companies. The rates here in the United States the company pays 27.1%, while in Hong Kong the tax rate is only 16%. This tax saving alone has the ability to increase profits. The company’s debt is very low as indicated by the debt ratio of
.48, so fir every .48 cents the company owns $1.00 worth of assets. The company currently generates
.13cents in profit for every one dollar in profit. These ratios will go up with less of a tax burden. If we take the 16% tax and apply it to gross profits we show a nice increase in net profit and all the financial ratios go up respectively. This potential addition profit will benefit current and future shareholders with elevated dividends and more retained earnings which we can use to finance other operations or expand the operation that I am proposing.
I feel we can expand this potential operation after only 2 years. I feel that time frame will allow us the opportunity to fine tune the Yammer product for the Pacific Rim, while still offering the existing product for transplants in this
earnings per share will increase and it can increase the overall demand for Ford's share,
Debt to Equity Ratio of 1.23 more than 1 reveals that more than half of assets are financed by debt.
percent. This means that there will be a great excess of income for the companies to engage in
HKDR 1. listed in Milan but also can be bought and sold by investors in HK.
Return on Total Assets was 4.43% which is below five percent. That indicates that the company is not accurately converting its assets into profit. The total for Return on Stockholders’ Equity was 8.89%, however financial analysts prefer ROE to range between 15-20 %. The company’s low ROE indicates that the company is not generating profit with new investments. Lastly, Debt-to-Equity ratio for the company was 1.01 which indicates that investors and creditors are equally sharing assets. In the view of creditors, they see a high ratio as a risk factor because it can indicate that investors are not investing due to the company’s overall performance. The totals of these three ratios demonstrate that the company’s financial state is not as healthy as it should be.
The positive ROI can not only suggest potential growth but also lead to dividends for
As mentioned previously, increasing pressures of competition and the goal of making more profits are the reasons why organisations try to find ways to minimise their costs. However, profit shifting is done because they saw the substantial disparity of corporate tax rates among countries and thus, an opportunity to minimise costs (Bartelsman & Beetsma, 2000; Holtzblatt et al., 2015). Exhibit 1 shows the corporate tax rates in developed countries (see Appendix). Australia’s corporate tax rate is 30%, which is the 4th highest (tied with Mexico) among OECD countries, where it is topped by the US at 35%, France at 34.43%, and Belgium at 33%. Holtzblatt et
Also, the tax rate applied by the government in our country will force the company to raise the price of the product in order to achieve better profitability and success.
Current Ratio= Assets /Liabilities with balance sheet numbers: $18,211 / $6573 = a ratio of 2.77
Second, if we look at the individual businesses of Suez Lyonnaise after the merger, all of them except for “Other” (non-core) have demonstrated a consistent increase in revenues, EBITDA, and net earnings, which again provides greater value to its shareholders. The “Other” businesses
In addition, Hong Kong had ‘simple and low tax regime’. Company only need to pay the tax amount based on their revenue earned in Hong Kong, and they did not need to pay ‘sales tax, capital gain tax and withholding tax on dividends’ (InvestHK 2016). These tax exemptions would obviously reduce tax expense of the company. Meanwhile,
Government policies towards bank sectors include the tax rates, law, policy and regulation imposed, which seriously affect whether the condition and environment is healthy and suitable to run a international bank there. UK posed high tax rate and ring-fencing rules, which it the main reason for HSBC to leave. A move to Hong Kong could save HSBC about $900 million or more a year. However, same amount of capital should be maintained, which impose no help to the effect of ring-fencing rules. Canada has a higher basic corporate tax rate than the UK but does not impose a profit surcharge, which mean the total tax expense is relatively lower
➢ Returning excess cash by way of a share buy-back gives a company greater flexibility with regard to its dividend policy
For many American products and services, initial market penetration in Hong Kong does not require an investment of millions of dollars of company funds. Given that Hong Kong is a “free port” with virtually no duties or tariffs, and that it has a wide-ranging network of agents and distributors, a well-managed market penetration program with a moderate investment in market development is generally all that is required initially. Due to its open nature, however, Hong Kong is among the most competitive and price-sensitive markets in the world. Companies considering entering this market should be aware that the Hong Kong business climate is extremely fast-paced. Decisions are made quickly, and companies need to be able to respond to inquiries immediately or they risk losing the market to faster moving suppliers.
For many, Hong Kong is considered to be a market that is at a crossroads for Asian consumers. To reach out to various customers, there has been a focus on utilizing specific tools that will determine the total amounts satisfaction. One of the premier organizations that are involved in these activities is DKSH Hong Kong. They are helping firms to identify and take advantage of new opportunities inside China. This occurs through different programs that they are offering to include: product registration, marketing / sales, distribution, health care and business solutions (i.e. information technology). These t elements are designed to provide businesses with the resources they need to be successful in these markets. To fully understand how the company is able to achieve these objectives requires looking at: the various systems they are utilizing, the fundamental role of information systems and how the firm can help organizations deal with issues such as warehouse management. Once this takes place, is when specific insights will be provided that are illustrating the way DKSH Hong Kong is using these tools to achieve their larger objectives. ("About DKSH Hong Kong")