Off-Balance Sheet Financing at Big 5 Sporting Goods Corporation Harvard Case Solution & Analysis

Katka Suvarinova, a financial analyst at Southern Cross LLC, and a recent MBA grad, has been asked to prepare an evaluation of an investigation of its accounting methods, along with Big 5 Sporting Goods Corporation's recent fiscal performance. The Big 5 was a West Coast sequence of clothing outlets and sports equipment, with 398 shops at the ending of 2010. After the investment report of Deutsche Bank maintained a hold evaluation and created a new target price of $13 per share for Big 5, Southern Cross decided to take a look at the business as a possible addition to its shorts portfolio.

Off-Balance Sheet Financing at Big 5 Sporting Goods Corporation Case Study Solution

The short pants fund included companies that Southern Cross believed were headed for large stock price drop based on fundamental analysis. Southern Cross's portfolio manager had requested Suvarinova to pay close attention to the company's accounting methods, and especially indicators the business had significant off-balance sheet debt, which was common in the retailing sector. Retail firms frequently let many of their stores, rather than buying the outlets with borrowed funds.

PUBLICATION DATE: October 09, 2012 PRODUCT #: TB0309-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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