RIM Case Study
As mankind enters the 21st Century, humans are becoming more and more dependent on technology. With innovative ideas modifying all the existing knowledge we have it is becoming a necessity for each and every one of us to keep up with the new precedents that technology set for us on a daily basis. This surge towards being the frontrunner in wireless, handset technology is led by the Canadian company Research in Motion (RIM). It is this company and how they’ve applied science that we will examine to try and identify their economic standing within this specific industry. We will dissect the framework of the company in order to determine its standing on the Toronto Stock Exchange (TSX). On March 26, 2008 the market closed with RIM selling at $120 a share.
RIM was founded in March, 1984 by Mike Lazaridis, now President and Co-CEO of the company. It opened doors for business out of Waterloo, Ontario and offered the design, manufacturing and marketing of innovative wireless solutions. RIM has global offices branching from Europe to Asia Pacific and is now traded on both …show more content…
As for operating efficiency, they received passing grades in only one of the two categories however the gross margin numbers were only slightly below those of the previous year. And in dealing with debt and capital, both the asset growth to total liability ratios as well as the current ratios failed to receive a passing grade. A better use of debt in creating value within the company should be a clear focus of RIM throughout the next fiscal year. And finally, the last two categories of the debt and capital both received passing grades. It is only reasonable to suggest that after reviewing the financial fitness test, RIM is a desirable company to invest in and one which still maintains the ability to repeat the exponential growth seen in past
RIM was founded in March, 1984 by Mike Lazaridis, now President and Co-CEO of the company. It opened doors for business out of Waterloo, Ontario and offered the design, manufacturing and marketing of innovative wireless solutions. RIM has global offices branching from Europe to Asia Pacific and is now traded on both …show more content…
As for operating efficiency, they received passing grades in only one of the two categories however the gross margin numbers were only slightly below those of the previous year. And in dealing with debt and capital, both the asset growth to total liability ratios as well as the current ratios failed to receive a passing grade. A better use of debt in creating value within the company should be a clear focus of RIM throughout the next fiscal year. And finally, the last two categories of the debt and capital both received passing grades. It is only reasonable to suggest that after reviewing the financial fitness test, RIM is a desirable company to invest in and one which still maintains the ability to repeat the exponential growth seen in past