CSR PLC

Report on the financial management of CSR plc

Table of Contents

PART A1

I.Company Overview1

II.Analysis of Short Term Asset Management Ratios5

III.Analysis of Liquidity Ratio7

IV.Analysis of Profitability Ratio8

PART B10

V.An investigation of the financial structure and cost of capital of the firm10

VIII. Concluding Remarks14

Reference15

Report on the financial management of CSR plc

PART A

Company Overview

CSR plc (Cambridge Silicon Radio) is a holding company. It was established in the year 1999 belonging to the technology sector. It provides multifunction connectivity for the audio, auto, camera, wireless, bluetooth, video, images and music market through its subsidiaries. They are also half players in the handset and other electronic market. CSR operates in three different continents that are Europe, Asia and United States. Its head quarters are in United Kingdom. It is the key supplier of silicon chips and wide range of products in the consumer market (www.csr.com).

Talking about the CSR plc's Market Capitalisation which is fluctuating over the period of 5 years, it is even lower than the firm's net or total assets. Market Capitalisation tells the market value of the company's shares outstanding by using the company's share price. It can determine the size of the company in terms of its sales and net assets.

CSR plc is rated below the average in terms of its market capitalisation as compared to other companies of the same sector. CSR has market capitalisation only around $569 million in 2011. Hence; it is considered under the category of small capitalisation. Almost a decrease of 42% is observed in market capitalisation of CSR in 2011 from last year (www.macroaxis.com).

The total assets of CSR are increasing over time. If the total assets of the company are not generating cash then they are useless for the firm. CSR plc is observed as the number company or stock in terms of total assets as compared to other companies. The below chart is given shows that CSR have the highest value of total assets that is $ 1,151 million in 2011.

Sales of CSR plc also shows an increasing trend in the last five years. This shows that the revenue that CSR plc is generating through its sales is increasing every year. The sales of its automotive business especially increased. In sales almost an increase of 5% is seen in 2011 from last year. Though the increase in sales is not that high hence; there are some business units of CSR whose sales declined in 2011 that is the reason why 2011 is known to be very challenging for the company (www.macroaxis.com).

CSR plc has increased its number of employees over time. They have increased employees in Asia mostly and the growth in employees in U.S. was due to the acquisition of Zoran. , if we compare the year 2007 with the year 2011 we can notice a 102% increase in the number of employees in five years (www.londonstockexchange.com).

A market to book ratio finds the value by comparing the company's market value to its book value. Book value means what is left after shutting ...