Major Business Case Study: Informaticss Education Ltd
1. Introduction
Informatics Education Ltd was established in 1983 with more than thirty years of experience in the education industry. It seeks to provide private and quality education to their students with a wide range of courses available for different education levels. Together with diverse learning models that range from traditional teaching to e-learning, Informatics Education Ltd strives to keep up with the ever-evolving global education landscape.
Raffles Education is a private education group established in 1990 with its first college in Singapore. It currently operates 34 colleges of higher education in 12 countries across Asia. Its colleges conduct classes of various disciplines ranging from business to design, taught in English by an international faculty.
2. MAJOR BUSINESS SEGMENT
In determining the major business segment, our main criterion is to compare the revenue generated by each segment.
For Informatics Education Ltd, the Higher Education segment generated a much higher revenue of $22,870,000 compared to $941,000 from Corporate Training in 2014. This is also evident in 2013’s figures, where the Higher Education segment generated $27,985,000 whereas the Corporate Training segment …show more content…
This would mean that the company is more liquid and is able to pay back its short term liabilities with its short term assets. It has $1.21 of current assets to pay off every $1 of liabilities. However, the cash ratio of Raffles decrease from 0.32 to 0.21, Raffles is less able to cover its liability using its available cash and cash equivalents as compared to 2013. This decrease in cash ratio is mainly due to a payment of $81.3 million to Kazanah for the purchase of a 10% stake in OUC. However, since the current ratio is still more than 1, this suggests that Raffles can still pay all its current liabilities in the immediate short term. It has $1.36 of current assets to pay off every $1 of liability in
Informatics Education Ltd was established in 1983 with more than thirty years of experience in the education industry. It seeks to provide private and quality education to their students with a wide range of courses available for different education levels. Together with diverse learning models that range from traditional teaching to e-learning, Informatics Education Ltd strives to keep up with the ever-evolving global education landscape.
Raffles Education is a private education group established in 1990 with its first college in Singapore. It currently operates 34 colleges of higher education in 12 countries across Asia. Its colleges conduct classes of various disciplines ranging from business to design, taught in English by an international faculty.
2. MAJOR BUSINESS SEGMENT
In determining the major business segment, our main criterion is to compare the revenue generated by each segment.
For Informatics Education Ltd, the Higher Education segment generated a much higher revenue of $22,870,000 compared to $941,000 from Corporate Training in 2014. This is also evident in 2013’s figures, where the Higher Education segment generated $27,985,000 whereas the Corporate Training segment …show more content…
This would mean that the company is more liquid and is able to pay back its short term liabilities with its short term assets. It has $1.21 of current assets to pay off every $1 of liabilities. However, the cash ratio of Raffles decrease from 0.32 to 0.21, Raffles is less able to cover its liability using its available cash and cash equivalents as compared to 2013. This decrease in cash ratio is mainly due to a payment of $81.3 million to Kazanah for the purchase of a 10% stake in OUC. However, since the current ratio is still more than 1, this suggests that Raffles can still pay all its current liabilities in the immediate short term. It has $1.36 of current assets to pay off every $1 of liability in