Victoria's Milling Case

VICTORIAS MILLING COMPANY, INC.

Point of View:Assumed in this eccentric person is the perspective of VICMICO?s Finance OfficerProblem:What be the possible causes of VICMICO?s immediate payment flow problem and how can they be communicate?Case Context:This case requires an analysis of Victoria mill about Co.?s monetary dictations in parade to present a comprehensible explanation regarding the company?s debt position. This paper utilizes the image of Ratio compendium to solve the afore-mentioned problem. The case also examines issues of cash flow problem for VICMICO in light of a fundamental law of a working committee consisting of VICMICO?s stakeholders.

Areas for Consideration:?VICMICO and its subsidiaries were precondition a moratorium of 90 days to dispose its debts.

?A statement released by VICMICO?s Board Chairman reported that 70- 80% of VICMICO?s problem was due to the crisis of the whole diligence.

?Massive importing and dwindling prices of sugar were observed.

?Data on milling industry or other related industries were not given.

?Given the bound of VICMICO?s operations and industries, jobs of a big number of employees are at stake. Management must also take into grade their disposition.

Methodology1.Conduct trend analysis in the company?s financial statements. The company needs to assess its performance over era to come up with an explanation about its current status.

2.Consider factors that may significantly affect the company?s performance.

3.Analyze the data gathered.



employ Ratio Analysis, the company?s management must be able to point out specific problems and issues to be handled.

Analysis?The company is highly-leveraged due to high levels of liabilities.

?Income from operations decreased greatly from Php603, 000,000 to Php234, 000,000 in 1996. This can be attributed to raised cost and expenses crossways the period.

?The company?s performance is declining over time. This is suggested by decreases in most of the profitability, efficiency, and liquidity ratios computed. Current as well as long-term debt...

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