In June 2020, the owner and director of UnityCars Pvt. Limited (UnityCars), a car rental company in Melbourne, Australia, was reviewing his fleet of vehicles and the company’s operation over the previous few months. The COVID-19 pandemic and related lockdowns had a negative and severe impact on UnityCars’ revenues. The company had expanded rapidly in previous years, becoming highly leveraged, which made it more vulnerable to negative shocks. A sharp reduction in revenues, high expenditures, and the combination of these with the uncertainty of the macro environment had posed a serious threat to the survival of UnityCars. The owner wanted to forecast the company’s operating cash flow and decide whether he should borrow or reorganize the fleet to meet his liquidity needs.
新冠疫情背景下的企业倒闭风险：以联合汽车公司为例 Unity Cars: At Risk of Business Failure During COVID-19 (Simplified Chinese version)
Xiping Li
Product #:W36511
Supplier:Ivey
Discipline:Accounting, Finance
Setting:Australia, 2020
Subjects:
Geography:
Your Price:$10.54
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Learning Objectives
- 解释营运资金管理的重要性；
- 计算每月贷款还款额并制定贷款还款计划；
- 预测现金流量并了解现金预算的构建方式；
- 证明现金管理决策的合理性，尤其是在不确定的情况下，并了解此类决策如何有助于避免业务失败。
This case is suitable for business finance, financial management, and applied corporate finance courses at the undergraduate level. It can also be used in management development training sessions, or to demonstrate entrepreneurship. The case assumes that students already understand working-capital management and business decision-making. After working through the case and assignment questions, students will be able to
- explain the importance of working-capital management;
- calculate monthly loan repayments and create a loan repayment schedule;
- forecast cash flows and understand how a cash budget is constructed; and
- justify reasonable cash management decisions, especially under uncertainty, and understand how such decisions help avoid business failure.