Eastmatt Kodak Case Study Solution

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Data Analysis. From our analysis, we can see that Eastmatt Kodak was forced to close numerous manufacturing facilities and reduce it’s global workforce from 145,300 in 1988 to 18,800.This was because it was not able to respond successfully to the rapid consumer shift to digital cameras. Kodak’s profitability and cash flow problems began in 2000 and it only managed to record one profitable year between 2004 and 2011, it also experienced annual declines in liquidity, steady fall in stock price of $94 in 1997 to 37 cents per share days before the chapter 11 Bankruptcy announcement. From our analysis, we can also see that Kodak had planned to get the capital necessary for conversion though a $950 debtor in possession financing agreement and $2.6billion…show more content…
We can also see that Kodak has almost quick resources that are equal to the current liabilities. Kodak is also depicting declining trends over the years on debt to equity ratio thus explaining further the poor capital structure of the firm. It further shows the company is relying heavily on external debts with minimal internal investments. The below rations show the financial performance of Kodak company. The quick ratio shown below of 1.10 indicates that there is sufficient liquidity position in short term but not in long term. The debt ratio shows that Kodak has faced a very serious financial situation because it has nominal assets to cover up it’s huge debt levels. Kodak has good inventory turnover ratio than its competitors and this is because it has low levels of inventory as compared to its competitors and also because of it’s faster

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