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ALAC International

By: Richard S. Ruback, Royce Yudkoff and Ahron Rosenfeld
  • Format:Print
  • | Language:English
  • | Pages:7 
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Abstract

ALAC International (ALAC) was awarded the U.S. distributorship of di-isononyl phthalate (DINP) which provided ALAC an opportunity to increase its sales and profits. But the opportunity required a significant additional investment in working capital. The DINP, shipped by boat from Taiwan, had a four month cash conversion cycle; after purchasing the DINP, it took two month to arrive in the U.S., another month to sell and distribute it, and then another month to collect the receivables. ALAC planned to double the number of shipments in 2011 to twelve from the six in 2010. ALAC needed to estimate its working capital needs and then evaluate alternative ways to finance its needs. Teaching Note for HBS No. 211-065.

Keywords

Working Capital; Working Capital; Financing And Loans; Growth Management

Citation

Ruback, Richard S., Royce Yudkoff, and Ahron Rosenfeld. "ALAC International." Harvard Business School Teaching Note 218-131, June 2018.

About The Authors

Richard S. Ruback

Finance
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Royce G. Yudkoff

Finance
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