ANALYSING WORKING CAPITAL AND ITS COMPONENTS

PARTICULARS 2013-14 2014-15 2015-16 2016-17 2017-18

A.CURRENT ASSETS
INVENTORIES 254.09 278.64 244.14 247.07 249.3
TRADE RECEIVABLES 279.48 217.37 234.28 185 193.63
CASH AND BANK BALANCE 1.82 1.08 1.96 2.63 20.63
OTHER CURRENT ASSETS 89.2 217.2 126.99 127.58 121.41
TOTAL CURRENT ASSETS 624.59 714.29 607.37 562.28 584.97

B.CURRENT LIABILITIES
SHORT TERM BORROWINGS 324.75 382 366.41 350 350
TRADE PAYABLES 33.26 30.04 18.66 18.31 16.39
OTHER CURRENT LIABILITIES 45.2 97.18 58.38 39.31 29.74
TOTAL CURRENT LIABILITIES 403.21 509.22 443.45 407.62 396.13

NET WORKING CAPITAL(A-B) 221.38 205.07 163.92 154.66 188.84

 NET WORKING CAPITAL (Rs. In Lacs)
Rs. In Lacs
250 221.38
205.07
200
163.92 188.84
150 154.66
NET WORKING
100 CAPITAL (Rs In
Lacs)
50

0
2013-14
2014-15
2015-16
2016-17
2017-18
YEARS
INVENTARY ANALYSIS
Invent

RS.IN LACS
PARTICULAR 2016 2017 2018
RAW MATERIAL 157.22 156.98 165.37
FINISHED GOODS 76.65 81.72 74.47 250
STORE,SPARES PART,ETC 10.27 8.37 9.46
248
246 244.14
TOTAL 244.14 247.07 249.3
244
242
240
2016
 Inventory Analysis (Rs. In Lacs)
RS.IN LACS

250
249.3
248 247.07
246 244.14 Inventory
244 Analysis (Rs. In
Lacs)
242
240
2016
2017
2018
YEAR
SUNDRY DEBTORS ANALYSIS
PARTICULARS 2016 2017 2018
TOTAL SUNDRY DEBTORS 234.28 185 193.63
Rs. In Lacs

Sundry Debtors (Rs. In Lacs)

234.28
250
200 185 193.63
150 Sundry
100 Debtors (Rs.
In Lacs)
50
0
2016
2017
2018
YEARS
 SUNDRY CREDITORS ANALYSIS
PARTICULARS 2016 2017 2018
TOTAL SUNDRY CREDITORS 18.66 18.31 16.39
RS. IN LACS

Sundry Creditors (Rs. In Lacs)

18.66
19
18.5 18.31
18
17.5 Sundry
17 Creditors
16.5 (Rs. In Lacs)
16.39
16
15.5
15
2016
2017
2018
YEARS
INVENTORY TURNOVER RATIO
PARTICULARS 2016 2017 2018
INVENTORY 244.14 247.07 249.3
COST OF GOODS SOLD 893.23 717.32 830.36
INVENTORY TURNOVER RATIO 99.76277 125.7187 109.5844

STOCK TURNOVER RATIO (In Days)=AVERAGE STOCK/COST OF GOODS SOLD*365

NO OF DAYS

NO OF DAYS
Inventory Turnover Rtio (In Days) De
140 125.71 95
120 99.76
109.58 90
100
80 Inventory 85
60 Turnover
40 Rtio (In 80
20 Days)
0 75
2016
2017
2018

YEARS
DEBTORS TURNOVER RATIO
PARTICULARS 2016 2017 2018
DEBTORS 234.38 185 193.63
SALES 927.28 751.76 874.24
DEBTORS TURNOVER RATIO 92.25768 89.82255 80.84159

DEBTORS TUROVER RATIO=DEBTORS/SALES*365

NO OF DAYS

Debtors Turnover Ratio (In Days)

95 92.25
89.82
90
Debtors
85 Turnover
Ratio (In
80 80.84 Days)

75
2016
2017
2018
YRARS
CREDITORS TURNOVER RATIO
PARTICULARS 2016 2017 2018
CREDITORS 18.66 18.31 16.39
COST OF GOODS SALE 893.23 717.32 830.36
CREDITORS TURNOVER RATIO 7.625024 9.316832 7.204526

CREDITORS TURNOVER RATIO=CREDITORS/COST OF GOODS SOLD*365

NO OS DAYS

Creditors Turnover Ratio (In Days)

9.31
10
7.62 7.20
8 Creditors
6
Turnover
Ratio (In
4 Days)
2
0
2016 2017 2018

YEARS
WORKING CAPITAL RATIO
PARTICULAR 2016 2017 2018
INVENTORY CONVERSION PERIOD 99.76 125.71 109.58
RECEIVABLE CONVERSION PERIOD 92.29 89.82 80.84
DEFFERAL PERIOD 7.63 9.32 7.2
SALES 927.28 751.76 874.24
WORKING CAPITAL RATIO 72.59220515918 100.1205837 76.495355966

WORKING CAPITAL RATIO=INVENTORY CONVERSION PERIOD+RECEIVABLE CONVERION PERIOD-DEFFERAL PERIOD/SALES*3

NO OF DAYS

Working Capital Ratio (In Days)

120
100.12
100 72.59
80 76.49
60 Working Capital
40 Ratio (In Days)
20
0
2016
2017
2018

YEARS
DEFFERAL PERIOD/SALES*365
OPERATING CYCLE PERIOD
PARTICULAR 2016 2017 2018
INVENTORY CONVERSION PERIOD 99.76 125.71 109.58
RECEIVABLE CONVERSION PERIOD 92.29 89.82 80.84
DEFFERAL PERIOD 7.63 9.32 7.2
OPERATING CYCLE PERIOD 184.42 206.21 183.22

OPERATING CYCLE=INVENTORY CONVERSION PERIOD+RECEIVABLE CONVERSION PERIOD-DEFFERAL PERIOD

NO OF DAYS
Operating Cycle Period (In Days)
206.21
210
205
200 Operating
Cycle Period
195 (In Days)
190 184.42 183.22
185
180
175
170
2016 2017 2018
YEARS