Overdosed? Analysis of the financial leverage of CSN

• Autor(a) principal: Moreira, Caritsa Scartaty
• Data de Publicação: 2023
• Outros Autores: Santos, Allisson Silva dos, Brito, Anderson Dias
• Tipo de documento: Artigo
• Idioma: por; eng
• Título da fonte: Internext
• Texto Completo: https://internext.espm.br/internext/article/view/693
• topic: Estrutura de capital; Alavancagem financeira; Tomada de decisão; Capital structure; Financial leverage; Decision making

Objective: to illustrate the use of concepts and implications associated with capital structure, cost of third-party capital, financial leverage, and bankruptcy costs to support strategic decision-making by the management of a publicly-held company listed on Brasil, Bolsa, Balcão [B]³ and on the New York Stock Exchange (NYSE). Method: Data were obtained through financial reports, such as Income Statement, Balance Sheet, Explanatory Notes, as well as consultations to the Management Reports, material facts disclosed, and media facts. Main Results: the case guides a decision by the company in the short term, such as investing in operating performance, renegotiating terms, selling assets, and carrying out an Initial Public Offering (IPO) of a subsidiary. Relevance / Originality: this teaching case innovates by illustrating the economic and financial situation of a company, involving issues such as operating performance, cash generation, and capital structure for the decision-making process. Such analysis is important for both the academic and the organizational context as it is a theoretical application in a real company. Theoretical / Methodological Contributions: The case contributes to a deeper analysis of the consequences of excessive indebtedness linked to low cash generation by an entity, the impact of debt costs on the company’s results, and management attitudes toward the situation of excess indebtedness.