Carreforu S.A.

Case 2 : hybridization, S.A. Working Capital Management Course : pecuniary Management, MMUGM Sby AP 7 Instructor: Dr. Erni Ekawati, MBA, MSA Group member : 1. Yuli Rosiana 2. Hidayat Akman 3. I Ketut Widya N. 4. Robby S. Irawan 5. Yogik H. Wijayanto KEY ISSUES : - crossover had been maintaining a damaging give notice working jacket crown that is considered as a risky financial strategy. A negative net working swell that a company menstruationly is futile to meet its short- termination liabilities with its current assets (cash, accounts receivable and inventory). In sideslip of temporary recession occur during paymentment of short term debt, the firm may unable to pay the debt. - Its Debt-to-Equity (D/E) ratio showed an change magnitude be over a period of time and it was comparatively higher than early(a) competitors. A higher debt-to-equity ratio representation that the more debt that is used and the greater risk that the entity might be forced to liquidate and go out of business. Carrefour financed its capital mostly by using a non-interest bearing patronage note. Consequently, Carrefour indeed should find a way to identify a slightly higher net working capital and reduce its debt-to-equity ratio.

- Maintaining a short Cash Conversion bout (CCC) was a good thing for Carrefour; however, having a negative Free Cash Flow (FCF) might not be good. Some investors believe that FCF gives a much clearer view of the readiness of the company to generate cash (and thus profits). On the other hand, a negative FCF also shows that this company was doing large investments. If these investments make a high return, the strategy would be a value for a company to provide a potential to pay off in the long run. Moreover, Carrefours current ratio (liquidity and risk ratio) seems to look awkward in which that its bet is less than 1.0 while other competitors maintained a number greater ratio. - As a rapidly growing company, Carrefour had great opportunities to be accepted by its... If you want to watch a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .