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Gemini Electronics case analysis
Analysis of financial statements
Assignment Submitted by: Atrooba Jaffery (12133010)
Nayla Saeed
(15121001)
Assignment# 3
Submitted to: Sir Naveed Mughal
Date: 28/Jan/2016

Gemini Electronics case analysis
Analysis of financial statements
Assignment Submitted by: Atrooba Jaffery (12133010)
Nayla Saeed
(15121001)
Assignment# 3
Submitted to: Sir Naveed Mughal
Date: 28/Jan/2016

Gemini Electronics
The company was founding in 2002 by Frank Wang, Gemini Electronics was the manufacturer of television in US. Gemini was the largest TV producer in US. In January 2010 Wang want Geographical expansion along with developing product offering so he could compete with Samsung, Sony, and LG in all market segments. The company has the growth chances as well as developing product offering. Now for that we do the analysis of company regarding his previous year performance and compare with the industry. Either he is going to right path or not. * Liquidity: * Particular interesting to short term creditors * It focus on current asset * General rule for current ratio should be at least 2:1
For the Gemini Electronics the current ratio is consistent and it is necessary in year 2006. But we note that Gemini is less liquid than the average firm in the industry, because the current ratio is lower than the industry. Industry average is 2.84.

| 2005 | 2006 | 2007 | 2008 | 2009 | Current ratio | 2.22 | 2.34 | 2.68 | 2.52 | 2.56 | Cash ratio | 0.54 | 0.58 | 0.75 | 0.63 | 0.60 | Quick ratio | 1.10 | 1.14 | 1.38 | 1.25 | 1.24 | Net Working Capital | 696,760,110 | 1,808,760,917 | 3,204,362,874 | 3,277,892,644 | 3,663,333,120 | NWC to total Assets | 0.33 | 0.41 | 0.46 | 0.39 | 0.37 |

As we see above table of Liquidity ratio, the company’s current ratio is greater than the 2.2 in all previous year. It

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