The EVA
The EVA has been increasing all over the past five years in the company. This steady positive growth shows an excellent performance on the company but can also be deceiving. The growth income of the company has been however shrinking over the years outlining a problem in general income generation in the company, checking the net operating cash flows of the company there has been a poor growth on it implicating the company is not making much more money (Haugtvedt et al., 2018). In this case, the company makes long-term investment infrastructure, or they are not earning a sufficient amount to cover its expenses and hence explaining the main reasons for the workers strike seen in the company.
Nonetheless, the company has been experiencing negative free cash flows in recent years; this affirms that the company is not in a position to generate more income or money to support the business. This explains the increase of the short term debts in the balance sheet. In general, it is correct to say that the company is going bankrupt and that is the current financial problem in the premises.
The best recommendation to be done to the company financial management is by laying off some of the assets and focus on some line of production. Nonetheless, the company might sell their debts and ensure that they reduce the debt they acquire as they scale down on their operation (Haugtvedt et al., 2018). Moreover, it is essential for the company to raise capital by offering shares through the capital market.