CAPSTONE CASE: CORAL SYSTEMS, INC.&SPATIAL TECHNOLOGY, INC.
Describe the "business model" in terms of revenues, profits, and cash flows.(bab2)
Conduct a ratio analysis of Coral Systems' and Spatial Technology past income statements and balance sheets for year of 1994 and 1995.
i. Liquidity Ratios
ii. Conversion Period Ratios
iii. Leverage Ratios
iv. Profitability Ratios
v. Efficiency and Return Ratios
Note any performance strengths and weaknesses and discuss any ratio trends.
Use the cash flow statements for the company, determine whether the venture has been building or burning cash, as well as possible trends in building or burning cash.
Discuss possible reasons why the plan by both companies for an initial public offering (IPO) of common stock at the end of 1996 was withdrawn.
Discuss what you believe will be the strategic (product lines, licensing, competitors, etc.) outlook for both companies and what you believe will be the financial market's view of a publicly traded these companies.