EXAGEROU NA DOSE? ANÁLISE DA ALAVANCAGEM FINANCEIRA DA COMPANHIA SIDERÚRGICA NACIONAL.

Purpose: This teaching case 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 (Companhia Siderúrgica Nacional - CSN) listed on Brazil Stock Exchange and Over-the-Counter Market ([B]³ Stock Exchange) and on the New York Stock Exchange. Method: Data were obtained through financial reports, such as the Income Statement, Balance Sheet, Explanatory Notes, and also from consultations with Management Reports, material facts disclosed, and also media facts. Main Results: The case guides a decision by the company in the short term, such as investing in operational performance, renegotiating terms, selling assets, and carrying out an Initial Public Offering of a subsidiary. Relevance / Originality: This teaching case innovates by illustrating the economic and financial situation of a company, involving issues such as operational performance, cash generation and capital structure for the decision-making process. Such analysis is important both for the academic and organizational contexts because it is a theoretical application in a real company. Theoretical / Methodological Contributions: The case contributes to a more in-depth 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 towards the excess of indebtedness. [ABSTRACT FROM AUTHOR]