Guna Fibres, Ltd.

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017


The company is unable to liquidate a seasonal working-capital loan for the requisite 30 days each year, a difficulty arising from two classic causes: secular growth of the company and declining profitability. Possible remedies include reducing inventory through more efficient transportation and warehousing, reducing credit terms to customers, switching from seasonal to level production, improving profitability, decreasing dividends, and reducing sales growth.



Schill, M., Bruner, R. and Pham, T. (2017), "Guna Fibres, Ltd.", Darden Business Publishing Cases.

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