Carrefou, S.a

Case 2 : intersection, S.A. Working Capital Management Course : fiscal Management, MMUGM Sby AP 7 Instructor: Dr. Erni Ekawati, MBA, MSA Group member : 1. Yuliana 2. Hidayat Akman 3. I Ketut Widya N. 4. Robby S. Irawan 5. Yogik H. Wijayanto KEY ISSUES : - crossover had been maintaining a electronegative cyberspace working heavy(p) that is considered as a risky financial strategy. A negative net working capital that a company currently is ineffectual to meet its short- verge liabilities with its current assets (cash, accounts receivable and inventory). In reference of temporary recession occur during payment of short term debt, the firm may unable to pay the debt. - Moreover, its Debt-to-Equity (D/E) ratio showed an change magnitude number over a period of time and it was relatively higher than other competitors. A higher debt-to-equity ratio kernel 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 trade. Consequently, Carrefour indeed should find a way to make a slightly higher net working capital and pare its debt-to-equity ratio.

- Maintaining a short Cash Conversion Cycle (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 baron 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 earn a high return, the strategy would be a worth for a company to provide a potential to pay take in the long run. - As a rapidly suppuration company, Carrefour had a great opportunities to be accepted by its customer excitedly as a convenient and one-stop obtain center with its cheaper price compare to other available stores. This pebibyte to a number of 40% of other small retail shops or approximately... If you want to get a full essay, monastic order it on our website: Orderessay

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