COMPANY PROFILE

Haribana Company is a Philippine-based manufacturing company

located in the South of Cebu. It has been the mission of the company to
produce 100% natural and gluten free flour from banana peel through the
utilization of banana manufacturing companies waste products as the main
raw material.
The company has foreseen the need of the modern consumers that
paves its way to produce the means of baking highly nutritious and
delectable breads and pastries that satisfies their cravings and enhances
their wellbeing.
The company, however, operates in high technological machineries
and advanced processing that would maintain the nutritional component and
significant organic compounds present in banana peels. This is in order to
prevent from putrefaction and extraction of toxins.
The company is distributing the products to the local bakeries in Carcar
City and to other neighboring cities. The company envisions to extend its
market to the bakeries nationwide in order provide quality flour products and
disseminate its astonishing health facts that banana peel comprises.
INVENTORY PERIOD

No. of Days
Divide: Inventory
Turnover
Inventory Period

Inventory Period
2017
2018
2019
360
360
360

2020
360

2021
360

65.69
5.48

67.35
5.35

67.36
5.34

67.47
5.34

67.47
5.34

ACCOUNTS RECEIVABLE PERIOD

Accounts Receivable Period
2017
2018
2019
No. of Days
360
360
360
Divide: Accounts Receivable
Turnover
54.14
55.52
55.13
Age of Accounts Receivable
6.65
6.48
6.53

2020
360

2021
360

55.13
6.53

55.13
6.53

ACCOUNTS PAYABLE PERIOD

No. of Days
Divide: Accounts Payable
Turnover
Age of Accounts Payable

Accounts Payable Period

2017
2018
2019
360
360
360
60.00
6.00

60.12
5.99

60.26
5.97

CASH CONVERSION CYCLE

Cash Conversion Cycle
2017
2018
2019
Inventory Period
5.48
5.34
5.34
A/R Period
6.65
6.48
6.53
A/P Period
(6.00)
(5.99)
(5.97)
Cash Conversion
Cycle
6.13
5.83
5.89

2020
360

2021
360

60.27
5.97

60.28
5.97

2020
5.35
6.53
(5.97)

2021
5.34
6.53
(5.97)

5.90

5.90

HOW TO IMPROVE OUR CASH CONVERSION CYCLE (CCC)?

Our Cash Conversion Cycle shows favorable results, thus, the challenge now
is to maintain it for the succeeding years. The following are some
recommendation in order to continue and improve the CCC.
For Inventory:
- Obtain an alternative supplier in case the main supplier cannot
meet the supplies needed in the production so that there will be
enough raw materials for the production. In that way, the company
can maintain enough level of inventory.
For Accounts Receivable:
- Offer cash discounts so that the customers will pay earlier.
- Impose interest charges in case payment is made after the last day
of credit term.
- Check the credit standing of the prospective customers to ensure
that they can pay within the credit term.
For Accounts Payable:
- Look for a supplier who offers a longer credit term.