Case 1: Gemini Electronics Memo

Melissa Barajas
Carolina Cespedes-Uribe
Nancy Ramirez
Case 1: Gemini Electronics Memo
To: Frank Wang
From: Sarah McIvor
Date: June 7, 2018
Re: Gemini Expansion
After giving much consideration, time, and analysis to the financial information presented for Gemini Electronics, we would like to propose a comprehensive review of the company’s standing. This review may aid those seeking guidance and clarification to come to a consensus in making a decision to see if Gemini is in good standing to expand to new markets or not at this time. Per our analysis, we target an evaluation of the following categories: liquidity, asset management, debt paying ability, profitability, and finalize with recommendations.
Liquidity
Gemini Electronics has had a steadily present proportion that is in the 2:1 range. This is an important factor
Additionally, credit deals do not seem to always be gathered so consequently, aggregating is at a higher rate. Asset management has seen increases in the recent years, this is a positive correlation in the right
The rapid growth has resulted in a relatively high working revenue. It seems as though the company also has higher costs offers than others in the industry. At this time, Gemini does seem to have a good control over their expenses. Data also reflects they are selling above average with their current total asset turnover ratio. Consequently, they are generating $1 of sales for every dollar that the company has in assets. Therefore, we can conclude that we can expect to see growth in profits for Gemini in the future. According to the exhibits we see some concerns in gross margin and operating profit margin, however, return on assets and equity reflect positive