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On Campus - Working Capital Management

The document provides financial data for various companies including Maruti Suzuki, Hyundai, Sun Pharmaceutical, and others, detailing their net sales revenue, cost of goods sold, current assets, and liabilities. It also includes key financial ratios such as inventory turnover, operating cycle, and cash cycle for each company. Additionally, it outlines a working capital planning sheet for Universal Ltd., indicating the required investment for the upcoming year.

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0% found this document useful (0 votes)
13 views9 pages

On Campus - Working Capital Management

The document provides financial data for various companies including Maruti Suzuki, Hyundai, Sun Pharmaceutical, and others, detailing their net sales revenue, cost of goods sold, current assets, and liabilities. It also includes key financial ratios such as inventory turnover, operating cycle, and cash cycle for each company. Additionally, it outlines a working capital planning sheet for Universal Ltd., indicating the required investment for the upcoming year.

Uploaded by

pgemp97.rashid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 9

Currency Million USD

Company Maruti Suzuki India Ltd. Hyundai Motor India Limited Sun Pharmaceutical Industries Ltd.
Net sales revenue 17,134.26 7,501.22 5,857.66
COGS 10,247.14 5,600.94 2,008.10
Current assets 1,532.27 3,084.76 3,802.65
Inventories 637.86 416.27 1,183.62
Trade and other receivables 551.35 352.38 1,349.27
Current liabilities 3,517.67 1,460.22 2,183.00
Trade and other payables 2,037.62 905.02 678.07

Inventory Turnover (x) 16.06 13.46 1.70


Trade Receivable Turnover (x) 31.08 21.29 4.34
Trade Payables Turnover (x) 5.03 6.19 2.96

Days of Inventory 22.72 27.13 215.14


Days of Receivables 11.75 17.15 84.08
Days of Payables 72.58 58.98 123.25

Operating Cycle 34.47 44.27 299.21


Cash Cycle (38.11) (14.70) 175.97

Current Ratio(x) 0.44 2.11 1.74


Quick Ratio(x) 0.25 1.83 1.20

_x000D_ General
#
Ultratech Cements
8,564.60
1,595.15
1,608.22
999.08
513.13
3,449.88
1,016.90

1.60
16.69
1.57

228.61
21.87
232.69

250.48
17.79

0.47
0.18

_x000D_ General
#
2021 2022 2023
Company Bajaj Auto Hero Motors TVS Bajaj Auto Hero Motors TVS Bajaj Auto Hero Motors TVS
Sales 29,237 31,772 19,420 34,240 30,077 24,355 37,743 34,891 31,973
Cost of Goods Sold 19,829 21,968 12,924 24,140 20,845 16,517 26,221 24,060 20,913
Inventory 1,493 2,274 136 1,230 2,158 1,642 1,563 2,719 1,921
Accounts Recievable 2,716 1,789 1,035 1,516 1,472 1,155 1,752 1,756 1,232
Accounts Payable 4,574 5,264 4,298 3,632 4,343 4,624 4,121 4,760 5,096

Average Inventory (PY Closing+Cy Closing)/2 1361.5 2216.0 889.0 1396.5 2438.5 1781.5
COGS COGS 24140.0 20845.0 16517.0 26221.0 24060.0 20913.0
Average AR (PY Closing+Cy Closing)/4 2116.0 1630.5 1095.0 1634.0 1614.0 1193.5
Average AP (PY Closing+Cy Closing)/5 4103.0 4803.5 4461.0 3876.5 4551.5 4860.0

Inventory Period (Avg Inv/Avg. COGS)*365 20.6 38.8 19.6 19.4 37.0 31.1
AR Period (Avg AR/Annual Sales)*365 22.6 19.8 16.4 15.8 16.9 13.6
AP Period (Avg AP/Avg. COGS)*365 62.0 84.1 98.6 54.0 69.0 84.8

Operating Cycle Inventory Period +AR Period 43.1 58.6 36.1 35.2 53.9 44.7
Cash Cycle Operating Cycle-AP Period -18.9 -25.5 -62.5 -18.7 -15.2 -40.1

Company Bajaj Auto Hero Motor TVS Motor


Year 2022 2023 2022 2023 2022 2023
Inventory Period 20.6 19.4 38.8 37.0 19.6 31.1
AR Period 22.6 15.8 19.8 16.9 16.4 13.6
AP Period 62.0 54.0 84.1 69.0 98.6 84.8

Operating Cycle 43.1 35.2 58.6 53.9 36.1 44.7


Cash Cycle -18.9 -18.7 -25.5 -15.2 -62.5 -40.1

_x000D_ General
#
2020 2021 2022 2023
Company Dr. Reddy Cipla Novartis Dr. Reddy Cipla Novartis Dr. Reddy Cipla Novartis Dr. Reddy Cipla Novartis
Sales 17,517.00 17,131.00 438 19,047.00 19,159.00 381 21,545.00 21,763.00 399 24,588.00 22,753.00 378
Cost of Goods Sold 5,552 6235 180 6,108 7544 135 7,742 9220 187 7,657 8347 199
Inventory 3,506 4377 58 4,541 4669 47 5,088 5350 57.00 4,867 5156 54.00
Accounts Recievable 5,027 3891 37 4,964 3445 38 6,676 3424 44 7,248 4057 36
Accounts Payable 1,524 2281 72 1,810 2066 55 2,266 2508 72.00 2,268 2457 59.00

Average Inventory (PY Closing+Cy Closing)/2 4023.5 4523.0 52.5 4814.5 5009.5 52.0 4977.5 5253.0 55.5
COGS COGS 6108.0 7544.0 135.0 7742.0 9220.0 187.0 7657.0 8347.0 199.0
Average AR (PY Closing+Cy Closing)/2 4995.5 3668.0 37.5 5820.0 3434.5 41.0 6962.0 3740.5 40.0
Average AP (PY Closing+Cy Closing)/2 1667.0 2173.5 63.5 2038.0 2287.0 63.5 2267.0 2482.5 65.5

Inventory Period (Avg Inv/Avg. COGS)*365 240.4 218.8 141.9 227.0 198.3 101.5 237.3 229.7 101.8
AR Period (Avg AR/Annual Sales)*365 95.7 69.9 35.9 98.6 57.6 37.5 103.3 60.0 38.6
AP Period (Avg AP/Avg. COGS)*365 99.6 105.2 171.7 96.1 90.5 123.9 108.1 108.6 120.1

Operating Cycle Inventory Period +AR Period 336.2 288.7 177.9 325.6 255.9 139.0 340.6 289.7 140.4
Cash Cycle Operating Cycle-AP Period 236.5 183.6 6.2 229.5 165.4 15.1 232.6 181.2 20.3

Company Dr. Reddy Cipla Novartis


Year 2021 2022 2023 2021 2022 2023 2021 2022 2023
Inventory Period 240.4 227.0 237.3 218.8 198.3 229.7 141.9 101.5 101.8
AR Period 95.7 98.6 103.3 69.9 57.6 60.0 35.9 37.5 38.6
AP Period 99.6 96.1 108.1 105.2 90.5 108.6 171.7 123.9 120.1

Operating Cycle 336.2 325.6 340.6 288.7 255.9 289.7 177.9 139.0 140.4
Cash Cycle 236.5 229.5 232.6 183.6 165.4 181.2 6.2 15.1 20.3

_x000D_ General
#
Universal Ltd. is a company engaged in manufacturing of Leather Shoes. Following is their
planning sheet for the next year. What amount of working capital should be infused in the
beginning of the year?

Sales 8,000,000 Credit period granted on sales(months) 2


Credit period extended by
Materials consumed* 2,000,000 suppliers(months) 2
Period of arrear in payment of
Wages paid* 1,600,000 wages(weeks) 1
Other Cash Manufacturing Period of arrear in payment of cash
expenses 1,200,000 expenses(months) 1
Total administrative Period of arrear in payment of total
expenses# 500,000 administraive expenses(months) 1
Sales promotion Period of advance payment of sales
expenses# 400,000 promotion expenses(months) 3
Gross profit 25%
Stocking period of raw
materials (months) 1.00
Stocking Period of finished
goods(months) 1.00
Cash balance maintained 100,000 *Variable Nature; #Fixed Nature
Safety margin on working
capital requirement 20%

Total Manufacturing Cost


Material 2,000,000
Wages 1,600,000
Cash other MFG Exp. 1,200,000
Total Cash MFG Exp. 4,800,000
Admin Expenses #N/A
Sales Promotion Exp #N/A
Total Cash Expenses #N/A

Profit
Cash Profit

_x000D_ General
#
Current Asset Requirement Amount in Rs. Formula
Investment inCash Balance to be Maintained 100,000 =B12

Investment in Inventory of Raw Material 166,667 =B4/12

Investment in Inventory of Finished Goods 400,000 =C19*(B10/12)

Investment in Advance Sales Promotion Expenses 100000 =B8*(D8/12)

Investment in Trade Receivables 1333333.33333333 =B3*(2/12)

Total Current Asset Requirement 2,100,000 =SUM(G3:G7)

Current Liability Support

Trade Payable 333,333 =B4*(D4/12)


Wages Outstanding 30,769 =B5*(D5/52)

MFG Expense O/S 100,000 =B6*(D6/12)


Admin Expense O/S 41,667 =B7*(1/12)
Total Support from Current Liabilities 505,769 =SUM(G11:G14)
#N/A
NET WC Requirement #N/A
20% Margin of Safety #N/A
Total Investment needed #N/A

Target

_x000D_ General
#
Discount 0.8153492
Amount 100
Cash Disc days 10
Total Credit Days 30

Annualised Discoun0.1500244

_x000D_ General
#
Jan Feb March Apr May June
Purchase 166000 166000 166000 166000 166000 166000
Payment 0 0 166000 166000 166000 166000
O/S 166000 332000 332000 332000 332000 332000

_x000D_ General
#
monthly Cash Mfg Exp Incurred Paid Ou standing
January 100000 100000 0 100000
February 100000 100000 100000 100000
March 100000 100000 100000 100000
April 100000 100000 100000 100000
May 100000 100000 100000 100000
June 100000 100000 100000 100000
July 100000 100000 100000 100000
August 100000 100000 100000 100000
September 100000 100000 100000 100000
October 100000 100000 100000 100000
November 100000 100000 100000 100000
December 100000 100000 100000 100000
Total MFG EXP 1200000

_x000D_ General
#

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