In the last post, we talked about dharma. The root of dharma is finance. A good financial health ensures the proper discharge of duties in a company. The company’s welfare is rooted in good finance.
Take the example of Apple Inc. Under the leadership of Tim Cook, Apple has maintained an exceptionally strong financial position. With a focus on innovation, efficient supply chain management, and strategic investments, Apple has amassed significant cash reserves. This financial strength has allowed the company to invest in new technologies, acquire other companies, and return value to shareholders through dividends and buybacks. The solid financial foundation has been crucial in maintaining Apple’s competitive edge and ensuring its long-term success.
On the flip side, consider the downfall of Toys “R” Us. Once a beloved toy retailer, the company filed for bankruptcy in 2017. Despite being a household name, Toys “R” Us struggled with massive debt, which hindered its ability to compete with online retailers and invest in its stores. The financial mismanagement, including high-interest rates from leveraged buyouts, led to insufficient cash flow and ultimately, its demise. The failure to maintain good financial health resulted in store closures and significant job losses, highlighting the critical importance of financial stability.
These contrasting examples demonstrate how financial health can either bolster a company’s ability to fulfill its dharma or lead to its undoing. Strong finances enable companies to innovate, grow, and navigate challenges, while poor financial management can undermine even the most well-known brands.
Reflecting on these stories, how do you think companies can better manage their finances to ensure long-term success? Can you identify other businesses that exemplify strong or weak financial health? Share your thoughts and let’s explore how financial strategies impact corporate welfare.