In financial health and in relative economic certainty, companies make their main financial decisions, namely investment, financing and the allocation of profits (dividends) reasonably rationally, at arms’ length, and, many cases, at competitive advantage. However, when they are financially distressed, they need to act quickly, more thoughtfully, and, usually at competitive disadvantage. In this video, Professor Lasfer explains the type of recovery strategies such companies can undertake, focusing on cash generating and conserving decisions. He explains the pros and cons of each one and provide some illustrations. In a follow up video, he will discuss the impact of Covid-19 on the firms’ financial decisions, and summarise the types of bailouts proposed by various governments and the decisions/responses made by various companies.