Case study 1 Please refer to the attached 2019 annual report of JD com, Inc to answer the following questions Please comment on JDs working capital management for the years ending in 2019, 2018, and 2017 in terms of cash management, inventory management, and credit policy (20 pts) Please propose and calculate any measures that you will employ for your analysis Based on your calculation in part a), please share your thoughts on the trends of JDs working capital management and potential concerns (if any) you have for JD Please pick two listed firms that you think are competitors of JD (no requirement on the exchange on which the firms are listed) (15 pts) Please list the two companies of choice and attach the most recent annual reports of the two companies (for the fiscal year 2019) State the reasons of your picks Calculate the measures used in part a) of question 1 for the two competitors for the years 2019, 2018, and 2017 Compare your calculation in part b) of question 2 to the measures of JD in question 1 Please choose the firm with the best working capital management among the three and state your reasons JD has been focusing on expansion for years For example, in the recent news, JD announces that it will acquire a courier services provider in August 2020 for USD 432 million (https www scmp com tech e commerce article 3097405 jdcom ramps china logistics expansion us432 million deal acquire (Links to an external site )) This is only one of the many acquisitions and investments JD has been making over the years Such massive expansion requires a reliable capital supply, either through internal financing or external financing Given JDs financial performance and financial position, make your suggestions about the financing channels to fund its expansion plans, i e , would you suggest JD CFO to rely on internal cash flows, or borrowing from the debt market, or issue more stocks Please state the pros and cons for each choice and make your own conclusion (10 pts)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 24, 2024

Case study 1

Please refer to the attached 2019 annual report of JD.com, Inc. to answer the following questions:

Please comment on JDs working capital management for the years ending in 2019, 2018, and 2017 in terms of cash management, inventory management, and credit policy. (20 pts)
1. Please propose and calculate any measures that you will employ for your analysis.
2. Based on your calculation in part a), please share your thoughts on the trends of JDs working capital management and potential concerns (if any) you have for JD.

Please pick two listed firms that you think are competitors of JD (no requirement on the exchange on which the firms are listed). (15 pts)
1. Please list the two companies of choice and attach the most recent annual reports of the two companies (for the fiscal year 2019). State the reasons of your picks.
2. Calculate the measures used in part a) of question 1 for the two competitors for the years 2019, 2018, and 2017.
3. Compare your calculation in part b) of question 2 to the measures of JD in question 1. Please choose the firm with the best working capital management among the three and state your reasons.

JD has been focusing on expansion for years. For example, in the recent news, JD announces that it will acquire a courier services provider in August 2020 for USD 432 million (https://www.scmp.com/tech/e-commerce/article/3097405/jdcom-ramps-china-logistics-expansion-us432-million-deal-acquire (Links to an external site.)). This is only one of the many acquisitions and investments JD has been making over the years. Such massive expansion requires a reliable capital supply, either through internal financing or external financing. Given JDs financial performance and financial position, make your suggestions about the financing channels to fund its expansion plans, i.e., would you suggest JD CFO to rely on internal cash flows, or borrowing from the debt market, or issue more stocks? Please state the pros and cons for each choice and make your own conclusion. (10 pts)