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Noel Gifts International Limited Balance Sheet Report

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Noel Gifts International Limited Balance Sheet Report
About NOEL Group Gifts International
Founded in 1975, Noel Gifts International Ltd is a Singapore-based company engaging in activities which are grouped into two divisions namely, Gifts and Properties. The Gifts division involves the online sale of gift hampers and floral arrangements in Singapore and Southeast Asia, as well as the management of the franchise programme. This division encompasses a few subsidiaries; Humming Flowers & Gifts Pte Ltd, Noel Hampers & Gifts (Johore) Sdn. Bhd. and Noel Hampers & Gifts (Penang) Sdn. Bhd. In early 2012, the Company extended their operations to China when Noel Gifts (Chengdu) Co. Ltd (NGC) was incorporated into the group. The Properties division manages the investment and and development of properties, comprising a significant portion of the Company’s income.
Growth Stagnation
The company has a good margin on sales, a very good liquidity position, along with almost negligible debts and servicing of interest. Such a situation is not ideal because this means the company is being too conservative and as a result, growth has been stagnating.
High Liquidity
The current ratio measures a company’s ability to pay off its short-term liabilities with its current assets. From 2008 to 2012, the company has enjoyed a high current ratio, indicating that they possess a significant amount of current assets as compared to short-term liabilities. This also shows that they have high liquidity, and are able to readily turn their products into cash. In 2012, the current ratio for the gifts industry stood at 2.11, while the company’s stood at 5.56. The average current ratio for the gifts industry over the past 5 years currently stands at 1.73. As a leading entity in the gifts industry, Noel Gifts International has been consistently performing higher than the gifts industry. Their high current ratio puts them in good stead to continue paying off their short-term obligations with ease.
The acid test ratio measures a company’s
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