In late 2011, Infineon (IFX), a German semiconductor company, is sitting on a €2.4bn cash balance representing 40% of its assets. As part of a financial policy review, management is receiving conflicting advice from different quarters as to whether to pay out some of the cash holdings, how much and by which methods.

This is an international version of the classic ratio detective exercise that is found in many US-based textbooks and other case series. The objective is to initiate students into balance sheet analysis via the use of common-size balance sheets. The case helps students to understand how the economics of the firm are revealed in the firm’s financial statements.

The case narrates the process of testing the concept of weather derivatives in developing countries. It describes why the World Food Programme chose Ethiopia as the pilot case and the process that led to the selection of AXA Re, the giant insurance company

Groupe Schneider is a world leader in electrical distribution, industrial engineering equipment, and industrial control and automation. To promote a stronger value creating culture, Schneider implemented a performance measurement system based on Economic Value Added.