Speedster Athletics Case Study Essay

Words: 1049
Pages: 5

Part I

One of the key roles of social media from a marketing perspective is the development of a client based platform. It is becoming an increasingly important part of any business’s marketing. Businesses can utilize existing online platforms to build networks of current and potential clients. By being active online allows businesses to connect with their customers in innovative ways to become a trusted source of information and convey the passion they have for their industry.

Social media is different from more traditional marketing tactics as it offers a free platform that is easily accessible to anyone with internet access. This allows for the increase communication for organizations to foster brand awareness and often, and
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Debt to owners’ equity ratio 1.33 - If the debt to owner’s equity ratio went up this indicates the percentage of Speedster’s assets are financed by debts increasing the possibility of bankruptcy. If number goes down this could indicate Speedster is generating an increase of cash flow and not continuing to rely on debt to run operations OR may they not be taking advantage of any increased profits that financial leverage may bring.

Speedster Athletics Company- CEO Letter

( ( (

CEO of Speedster Athletics Company

Bangalore, India


Dear CEO

Speedster Athletics debt ratio has increased over the past few years indicating the company has relied on debt to finance assets to meet business-operating needs. The company’s long-term debt will need to provide a return on investment above borrowing costs by doing so. The current ratio indicates the company is meeting short-term debt obligations, however is doing so through means of financing due to their lack of cash flow.

The historical high average days of inventory is a reflection of not controlling inventory quantity levels or fill requirements to their sales levels, which is affecting gross margin. With an average collection period of ~55 days, it is taking too long for this company to turn its receivables into cash. This affected their ability to service operating cost therefore acquired a significant amount of debt. Speedster Athletics faces financial risk. If their