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Belco Global Foods

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Belco Global Foods is a leading marketer of poultry, meat and other food products. Majority of their products are sourced in the United States and then exported to more than 125 countries. Belco has seen rapid growth and great success due largely to its commitment to understanding markets and its customers. Because of their commitment their customers have kept them informed of local demands, and have helped them gain invaluable knowledge about foreign suppliers, which has helped Belco source some products more effectively from other countries. Pam Arnold leads Belco’s Global Credit team, which oversees risk management and the collections of accounts receivable. Between 40 and 50 percent of Belco’s sales are made on open account terms …show more content…

At first glance Kooritsa Kiev seems like it is in a decent position with a net operating working capital of 46,625 Rubles, a net operating profit after tax of 16,159 Rubles. However, when you delve further you realize they have a negative free cash flow of 116 Rubles, which is not always a sign of bad business, especially when a company is growing at a rapid pace however, in Kooritsa Kiev’s case it is a bad sign. Several factors point to a negative growth trend; one, their return on invested capital is very low at .3393 and with their net operating profit after tax being low this shows that they are most likely in financial trouble. Two, from 2007 to 2008 Kooritsa Kiev’s current ratio went from 1.4863 to 1.3427 suggesting that since the beginning of the year they have begun to pay their accounts payable slower. Three, their total asset turnover ratio displays concern as well; from 2007 to 2008 it dropped from 2.5 to 2.4 showing that Kooritsa Kiev generated less volume given its total asset investment in 2008. Lastly, the largest display of their trouble is their gross profit margin change from 2007 to 2008. In 2007 they were at 20% in 2008 it dropped to 17%. This shows that for every Ruble in sales in 2008 Kooritsa Kiev only kept 17 cents and spent 83 cents to deliver to its customers. If Pam directs her team to hire legal counsel and go to court not only could this reconcile the unpaid account but it

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