Winfield Refuse Management Inc Raising Debt vs Equity Brief Case W Carl Kester Sunru Yong 2012

Winfield Refuse Management Inc Raising Debt vs Equity Brief Case W Carl Kester Sunru Yong 2012

Financial Analysis

Financial Analysis — Winfield Refuse Management Inc (WCMS): In recent years, WCMS has seen a decrease in operating income due to an increase in the number of units. Despite its weak financial results, management believes that the company has a strong future ahead as it has invested in infrastructure, new equipment and strategic partnerships. WCMS provides residential, commercial and industrial garbage collection and disposal services in South Carolina. In 2012, the company collected approximately 18,459 cubic yards of resident

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Winfield Refuse Management Inc. Has been working on developing a new refuse-sorting facility for their customers in Portland, Oregon, since 1989. This new, state-of-the-art sorting facility will greatly increase productivity for the company, providing higher rates for the customers. YOURURL.com The current refuse sort is operated at the facility in downtown Portland, which can handle about 400,000 tons of refuse per year. However, the city is planning to reduce its waste stream to be more environmentally friendly, and to reduce costs for

SWOT Analysis

In recent times, the issue of debt and equity has been a matter of debate in the share market. The SEC has made it clear that a firm must make the best of the available investment opportunities within its own balance sheet. If a firm is willing to raise equity and not use it to balance its balance sheet, that firm could suffer the consequences of the failure of investors to participate in its debt offering. This case study discusses an experience in raising debt instead of equity in Winfield Refuse Management Inc. Winfield Refuse

BCG Matrix Analysis

I think the paper by Carl Kester and Sunru Yong (2012) is one of the best ones we have published this year, especially given the current situation in Indonesia regarding debt and equity. The paper is based on a study on 79 Indonesian companies (see Table 1). The results are summarized in two graphs, one showing the average debt to equity ratio and the other showing the average debt to cash flow ratio. The debt to equity ratio is very low (8.3%) with no

Recommendations for the Case Study

The case study shows that Winfield Refuse Management Inc raises debt and equity in a financial crisis rather than cutting costs or reducing expenses. Winfield’s strategy can be compared to two companies that faced the same situation: Walmart and Target. Both had to make cuts in expenses to stay solvent. Winfield uses this strategy because the company is a supplier of refuse disposal services to a local municipality, and the city faces a significant debt load. The city has to maintain a balanced budget, which can be challenging in the current

Alternatives

Winfield Refuse Management Inc is a publicly-traded, California corporation operating in the refuse and recycling business. The company, founded in 2005, had grown from a small operation to a large concern in a matter of years, with revenues of over $30 million in 2012. This growth story began in 2005 with the spin-off of Winfield’s recycling division, Winfield Recycling Inc. From that point on, Winfield became a growth-oriented and diversified business