Since HMC faces very high debt of $2,000 million, it should restructure its balance sheet in order to improve the overall financial situation. Possible ways to get rid of debt are either to buy it off or transfer it to equity holdings. This would lower the interest obligations and therefore the eventuality of bankruptcy.
Furthermore, MCs balance sheet shows an amount greater than $500 million as receivables and $200 million of inventory. An active and effective strategy for collecting debt is needed to reduce receivables and increase cash flows as well as the working capital. In order to exhaust all possibilities, inventory should be reviewed and superfluous parts should be sold off. These two actions would help attain the aim of a substantial
Furthermore, MCs balance sheet shows an amount greater than $500 million as receivables and $200 million of inventory. An active and effective strategy for collecting debt is needed to reduce receivables and increase cash flows as well as the working capital. In order to exhaust all possibilities, inventory should be reviewed and superfluous parts should be sold off. These two actions would help attain the aim of a substantial