Novocabos: Management of Working Capital

Novocabos is the Brazilian subsidiary of a multinational in the automotive components sector, an extremely competitive sector. During the economic boom years (2006-2013) sales grew to 100 million Brazilian reais (R$). Novocabos made heavy CAPEX investments and also repurchased part of the shares from the former owner. In 2014-2016 the economic crisis hit the sector hard and led Novocabos into financial problems, which need a solution.
This case is based on the Novocabos case of the same author with the acronym F-765.
Collection: IESE (España)
Ref: F-942-E
Format: PDF
Number of pages: 7
Publication Date: Jul 26, 2018
Language: English, Spanish, Portuguese Portugal

What material is included in this case:

Teaching Note Exclusive professors
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Description

Novocabos is the Brazilian subsidiary of a multinational in the automotive components sector, an extremely competitive sector. During the economic boom years (2006-2013) sales grew to 100 million Brazilian reais (R$). Novocabos made heavy CAPEX investments and also repurchased part of the shares from the former owner. In 2014-2016 the economic crisis hit the sector hard and led Novocabos into financial problems, which need a solution.
This case is based on the Novocabos case of the same author with the acronym F-765.
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Geographic Setting: Brazil

Learning Objective

Financial needs as a consequence of equity reduction and important investments in fixed assets.
Management of working capital. Financial consequences of the economic crisis. To be used in the financial analysis course at the MBA level or in Executive Education programs.

Novocabos: Management of Working Capital

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"Novocabos: Management of Working Capital"