Receivable Management in Indian Automaker Space
RECEIVABLE MANAGEMENT OF INDIAN AUTOMAKERS IN A REVIVED SCENARIO
*P.Nageswari ,** E.Bennet, *** Dr.M. Selvam Abstract January 2010 marks a milestone in the automotive journey of the country with Maruthi Suzuki, Tata Motors, Mahindra & Mahindra and General Motors India reporting their highest ever monthly sales. A firm’s profitability is determined partly by way of its working capital management. An efficient management of working capital will yield significant results and its neglect can be highly dangerous to any firm. The Automobile Industry is growing at a very high speed. During the post global financial crisis, the growth of the Automobile Industry is at a very high rate compared to the other industries. A sample of eleven companies were selected for this study on the basis of high sales turnover and data for this study were collected for a period from 1999 to 2009 to analyze whether the sample companies really managed their Receivables or not. The study used Ratio Analysis and ANOVA as tools to find out the efficiency of Receivable Management during the study period. The study found out that the Automobile Industry in India efficiently managed their Receivables and based on the future sales forecast, the sales turnover and profit will be good in the future.
Keywords: Receivable Management, Profitability, Automobile, Working Capital.
* Research Scholar, Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India **Research Scholar, Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India *** Associate Professor and Head of the Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India
Electronic copy available at: http://ssrn.com/abstract=1791942
1.0 Introduction Automakers zoom on the fastest lane in January 2010. January 2010 marks a milestone in the automotive journey of the country with Maruthi
*P.Nageswari ,** E.Bennet, *** Dr.M. Selvam Abstract January 2010 marks a milestone in the automotive journey of the country with Maruthi Suzuki, Tata Motors, Mahindra & Mahindra and General Motors India reporting their highest ever monthly sales. A firm’s profitability is determined partly by way of its working capital management. An efficient management of working capital will yield significant results and its neglect can be highly dangerous to any firm. The Automobile Industry is growing at a very high speed. During the post global financial crisis, the growth of the Automobile Industry is at a very high rate compared to the other industries. A sample of eleven companies were selected for this study on the basis of high sales turnover and data for this study were collected for a period from 1999 to 2009 to analyze whether the sample companies really managed their Receivables or not. The study used Ratio Analysis and ANOVA as tools to find out the efficiency of Receivable Management during the study period. The study found out that the Automobile Industry in India efficiently managed their Receivables and based on the future sales forecast, the sales turnover and profit will be good in the future.
Keywords: Receivable Management, Profitability, Automobile, Working Capital.
* Research Scholar, Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India **Research Scholar, Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India *** Associate Professor and Head of the Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India
Electronic copy available at: http://ssrn.com/abstract=1791942
1.0 Introduction Automakers zoom on the fastest lane in January 2010. January 2010 marks a milestone in the automotive journey of the country with Maruthi
References: 1. www.google.com. 2. www.investormoney.com 3. Prowess Database of CMIE 4. The Hindu Business Line, dated February 02, 2010