Phillips

This company has a current ratio of around 1.7-2.0 is pretty encouraging for a business. It
suggests that the business has enough cash to be able to pay its debts, but not too much finance
tied up in current assets which could be reinvested or distributed to shareholders.

Quick ratio is an indicator of solvency of an entity and must be analyzed over a period of time
and also in the context of the industry the company operates in. This company has a lower quick
ratio than that of the industry which suggests that the companys ability to settle current
liabilities on a very short notice is better.

PHILLIPS 15-Mar 14-Mar 13-Mar

Total Liabilities 1,486.78 1,499.18 1,316.19
Total Assets 1,486.79 1,499.17 1,316.19 Monito
ring the
Miscellaneous average
Expenses 778.53 862.59 865.09
Total Revenue 2,439.99 2,619.21 2,506.42
Total Expenses 2,203.14 2,347.81 2,216.36
Current ratio 1.7634 1.665 1.0125

Quick ratio 0.86 0.73 0.52

Average collection
period 27.3332 21.556 19.62
Inventory conversion
period 189.213 173.098 147.769
Payment deferral
period 501.657 595.783 675.29

Gross operating cycle 196.567 181.326 179.62

Net operating cycle -199.56 -126.802 134.592

collection period is important for a company's cash flow and its ability to meet its obligations
when they come due. Whirlpool has an average collection period of 19.32 which is lower than
Panasonic and Phillips. This suggests that the company accounts the payments from the debtors
earlier than the other 2 companies, which means that there is a possibility for the company to
reduce its NOC.