in future. KQ Activity Ratios Years | 2012 | 2011 | 2010 | 2009 | 2008 | Average Collection Period (Debtors ratio) | 48.6 | 58.8 | 46.7 | 51.0 | 43.6 | Inventory Day (Inventory Conversion Period) | 9.19 | 8.70 | 8.17 | 7.94 | 8.52 | Creditor’s Period | 50.93 | 65.31 | 75.27 | 67.63 | 36.19 | Cash Conversion Cycle | 6.85 | 2.14 | -20.43 | -8.65 | 15.91 | Debtors turnover Credit sales/ debtors | 7.51 | 6.21 | 7.82 | 7.15 | 8.37 | Creditor’s Turnover | 7.17 | 5.59 | 4.85 | 5.40 | 10.08
Premium Cash conversion cycle Working capital Debt
March-30-2012 3 Operating Cash Flows Net cash flow from operations has been negative for 3 of the last five 5 financial years‚ expensive bank over draft is being used to fund operations. Listing would ease pressure‚ but business must be able to generate cash on its own. What are the plans to improve this? Net Cash Provided by Operations 60‚000‚000 40‚000‚000 20‚000‚000 12‚684‚280 9‚518‚411 10‚000‚000 5‚476‚246 12‚435‚134 Bank Overdraft 30‚000‚000 Cash on Hand 28‚997‚580 $16‚580‚179
Premium Financial ratios Revenue Financial ratio
3. PROFILE OF THE STUDY RATIO ANALYSIS ANALYSIS OF FINANCIAL STATEMENTS The traditional financial statements that comprise of the balance sheet and profit and loss account do not give enough information related to financial operations of the company. These financial statements prepared as per the statutory requirement of law need to be analyzed in order to evaluate the past performance of the company and the future prospects. The most widely used tool is Ratio Analysis. DEFINITION
Premium Balance sheet Working capital Inventory
Costs are too high‚ prices are too low‚ or the company employs too much capital; and he wants SKI’s managers to correct the problem. Barnes has long felt that SKI’s working capital situation should be studied—the company may have the optimal amounts of cash‚ securities‚ receivables‚ and inventories; but it may also have too much or too little of these items. Barnes also knows that decisions about working capital cannot be made in a vacuum. However‚ lower raw materials inventories might lead to production
Premium Interest Inventory Debt
the cash conversion cycle and the net trade cycle. By testing the two variables with corporate profitability‚ we can see that Finnish and Swedish corporations can increase their gross operating profitability by reducing the cash conversion cycle and net trade cycle. Also‚ the different components of the cash conversion cycle have been studied. There is significant evidence that by effectively managing each part of working capital‚ a company can increase the net present value of its cash flows
Premium Inventory Balance sheet Working capital
Thomas M. Krueger‚ University of Wisconsin-La Crosse Introduction The importance of efficient working capital management (WCM) is indisputable. Working capital is the difference between resources in cash or readily convertible into cash (Current Assets) and organizational commitments for which cash will soon be required (Current Liabilities). The objective of working capital management is to maintain the optimum balance of each of the working capital components. Business viability relies on the
Premium Cash conversion cycle Inventory Balance sheet
Finance 534 week 10 quiz 9 Question 1 Which of the following statements is NOT CORRECT? Answer |x | |Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate. | | | |Accruals are "free" in the sense that no explicit interest is paid on these funds. | | | |A conservative approach to working capital management will result in most if not all permanent current
Premium Working capital Cash conversion cycle Inventory
PROJECT REPORT ON WORKING CAPITAL MANAGEMENT AT KIRLOSKAR PNEUMATICS CO. LTD‚ HADAPSAR. Submitted By: Rajesh Menon (M.B.A-II) In Partial Fulfillment for Degree of Master of Business Administration during the year 2006-07 VISHWAKARMA INSTITUTE OF MANAGEMENT‚ PUNE. 1 ACKNOWLEDGEMENT It is a matter of great satisfaction and pleasure to present this report on Working Capital Management of KIRLOSKAR PNUEMATIC CO. LTD. (KPCL)‚ Pune 411013. I take this opportunity to owe my thanks to all
Premium Inventory Working capital Cash conversion cycle
THE IMPACT OF WORKING CAPITAL MANAGEMENT ON CASH HOLDINGS – A Quantitative Study of Swedish Manufacturing SMEs Author: Place of Birth: 1st Examiner: 2nd Examiner: Tutor: Term: Due Date: Maxime Abel Frankenthal‚ Germany Prof. Håkan Boter (Mid Sweden University) Prof. Dr. Jürgen Stephan (Fachhochschule Aachen) Dr. Darush Yazdanfar Summer 2008 May 30th‚ 2008 Abstract This study examines the impact of working capital management on cash holdings of small and medium-sized manufacturing
Premium Inventory Working capital Balance sheet
Read the syllabus for examples.The points for each question are listed in parentheses at the start of the question‚ and the total points for the entire assignment adds up to 100. You are strongly encouraged to use spreadsheets. Refer to Note on Sample Cash Flow Template. Question 1 (5 points) The project with the highest IRR is always the project with the highest NPV. Your Answer | | Score | Explanation | True | | | | False | ✔ | 5.00 | Correct. Try now to sort this out in different contexts
Premium Free cash flow Inventory Generally Accepted Accounting Principles