Business Analysis of Sealed Air Corporation

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Sealed Air Corporation 1. The situation Sealed Air Corporation shook the business community in April 1989 when it announced a one time special offer to repay a cash dividend of $40 per share. The dividend payment represented the largest payment in the history of the company, and one of the largest payments in the history of the business community. The company targeted mainly already existent shareholders, and strived to decrease the purchase attempts of new investors. The scope was that of creating more value for the common stock owners, and one of the most positive outcomes was represented by the high degrees of stakeholder satisfaction, as well as the generation of increased capitals for the firm, with the aid of which it repaid part of its bank loans, and as such generated savings on interest rate charges. Once taken, the decision was highly disputed by some of the executives, as well as analysis outside the firm. Still, it was implemented and several results were generated. At this stage, it is important to assess the future strategies to be implemented to restore financial stability. 2. Financial analysis In order to assess the condition of the firm and make informed recommendations, it is necessary to review it through financial lenses. In this setting, various computations would be completed, as revealed below: Ratios of financial strength a) The quick ratio Quick ratio = (Current assets - Inventories) / Current liabilities Quick ratio for 1988

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