... a long waitlist for its products. From the financial perspective, Ducati had a ROIC of 5% in 1996. With a WACC of 8%, Ducati earned an EVA of negative 14 billion Lira, delivered an EBITDA margin of 12% (prior year was 20%) and had SG&A expenses of 23.1%. EXHIBIT 1. Motorcycle volume growth decreased 32.7% from prior year to 13,480 in 1996, with outstanding orders in Europe of 5,600 units. By March 1996, a countless number of bikes missing one part were sitting in the shop because Ducati's suppliers either stopped providing the part or were bankrupt because they were not getting paid. Better management of working capital requirements was in dire need for Ducati to avoid bankruptcy. Yet Ducati has very strong manufacturing fundamentals and a high level of standardization of its engines. Injections of working capital would to a great extent help turn the operations around. Working capital ...

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