Trade

Inventories(in Receivables(in Trade

Firms Cr) Cr) payable(in Cr) Non-Cash WC
Bajaj Auto Limited 1,493.89 2,716.85 4573.81 -363.07
Hero
MarutiMotoCorp Limited
Suzuki India 1,469.55 2,426.76 5,204.61 -1,308.30
Limited 3,050.00 1,276.60 10,161.70 -5,835.10
Mahindra
TVS Motorand Mahindra
Company 3,955.47 2,342.85 9,988.16 -3,689.84
Limited 1,151.81 869.98 3,921.60 -1,899.81
Tata Motors Limited 4,551.71 2,087.51 8,115.01 -1,475.79
Majestic Auto Limited 2.12 2.25 0.81 3.56
Atul Auto 51.12 23.74 48.08 26.78
Ashok Leyland 2,142.29 2,816.00 5,164.69 -206.40
Force Motors 557.82 125.99 583.94 99.87
Eicher Motors 769.13 256.18 1,692.13 -666.82
Revenue (Net WC/
Op)(in Cr) Revenue(%) ln Revenue
27132.9 -1.3381171935 10.2085022927
30,303.53 -4.3173188074 10.3190194864
66,562.10 -8.7664000986 11.1058906255
44,296.95 -8.3297834275 10.6986711049
16,603.45 -11.442260494 9.71736578408
46,559.39 -3.1696935892 10.7484839809
20.25 17.5802469136 3.00815479355
290.27 9.22589313398 5.67081152432
15,301.45 -1.3488917717 9.63570287413
1,951.87 5.11663174289 7.57654316639
8,571.64 -7.7793747754 9.05621435851
Firms WC/Revenue(%)
Hero MotoCorp Limited -4.317318807
Maruti Suzuki India Limited -8.77
Mahindra and Mahindra -8.33
TVS Motor Company Limited -11.44
Tata Motors Limited -3.17
Majestic Auto Limited 17.58
Atul Auto 9.23
Ashok Leyland -1.348891772
Force Motors 5.116631743
Eicher Motors -7.78

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.918611978978215
R Square 0.843847967922273
Adjusted R Square 0.824328963912557
Standard Error 3.87942697770451
Observations 10

ANOVA
df
Regression 1
Residual 8
Total 9

Coefficients
Intercept 27.1621988428755
X Variable 1 -3.2540914431122

The regression is significant at 95% confidence level as the significance level is below 0.05
So, For Bajaj Auto, (WC/Revenue) = 27.16 - 3.2572(ln(Revenue))

So, predicted (WC/Revenue) = 27.16 - 3.2572*10.20

-6.06344
Actual (WC/Revenue) of Baja Auto is -1.338117194
Bajaj Auto has been investing more in its opertaions and has to decrease its WC
 ln Revenue
10.31901949
11.10589063
10.6986711
9.717365784
10.75
3.008154794
5.670811524
9.635702874
7.576543166
9.056214359

SS MS F Significance F
650.64143743911 650.6414 43.23212 0.000173844197857971
120.399629402732 15.04995
771.041066841842

Standard Error t Stat P-value Lower 95% Upper 95%Lower 95.0%

4.50263523076051 6.032512 0.000312 16.7791033814258 37.54529 16.7791
0.494910280263019 -6.575114 0.000174 -4.39535659595378 -2.112826 -4.395357

ance level is below 0.05

rease its WC
Upper 95.0%
37.54529
-2.112826
Firm
Bajaj Auto WC/Revenue(%) ln Revenue
Limited
Hero MotoCorp -1.33811719351783 10.208502292679
Limited
Mahindra -4.31731880741286 10.3190194863618
TVS Motorand
Mahindra
Company -8.32978342752718 10.6986711049046
Limited
Tata Motors -11.4422604940539 9.717365784076
Limited
Majestic Auto -3.16969358919866 10.7484839809449
Limited 17.5802469135802 3.00815479355255
Atul Auto 9.22589313397871 5.6708115243195
Ashok Leyland -1.34889177169484 9.63570287413185
Force Motors 5.11663174289271 7.57654316639461
Eicher Motors -7.77937477542221 9.05621435851137

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.89617572521552
R Square 0.803130930465564
Adjusted R Squar 0.77852229677376
Standard Error 4.18032257853651
Observations 10

ANOVA
df SS MS F
Regression 1 570.319790095513 570.3197900955 32.6361447175
Residual 8 139.800774884977 17.47509686062
Total 9 710.120564980491

Coefficients Standard Error t Stat P-value

Intercept 26.6002512017941 4.93805546650079 5.386786637422 0.000656291028
X Variable 1 -3.13719811854445 0.549151938204215 -5.71280532816 0.000447725542

The regression is significant at 95% confidence level as the significance level is below 0.05

So, For Maruti Suzuki, (WC/Revenue) = 26.6 - 3.1372(ln(Revenue))

So, predicted (WC/Revenue) = 26.6 - 3.1372 *11.1059

-8.24142948
Actual (WC/ Revenue) of Maruti Suzuki is -8.7664%
Maruti Suzuki is operating almost at optimal WC.
Significance F
0.000447725542

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

15.21307487618 37.98742752741 15.21307487618 37.98742752741
-4.4035447589 -1.87085147819 -4.4035447589 -1.87085147819