Financial Analysis
Kodak faces the challenge of high restructuring costs and declining demand for its digital products, while trying to redefine its organizational structure and brand name. On top of company-specific problems, Kodak faces a stiff macro-economic headwind, as consumers continue to watch their spending on luxury items. To combat these problems, Kodak has cut costs via layoffs and reductions in R&D expenditures, removed dividend payments to common stockholders and targeted its cash conversion cycle. In the near term, Kodak appears to be poorly positioned to handle an extended economic contraction, and must act immediately to generate additional revenues and profits.