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
 WC/
Firm
Bajaj Auto Revenue(%) ln Revenue
Limited
Hero MotoCorp -1.33811719352 10.20850229268
Limited
Mahindra -4.31731880741 10.31901948636
TVS Motorand
Mahindra
Company -8.32978342753 10.6986711049
Limited
Tata Motors -11.4422604941 9.717365784076
Limited
Majestic Auto -3.1696935892 10.74848398095
Limited 17.58024691358 3.008154793553
Atul Auto 9.225893133979 5.67081152432
Ashok Leyland -1.34889177169 9.635702874132
Force Motors 5.116631742893 7.576543166395
Eicher Motors -7.77937477542 9.056214358511

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.896175725216
R Square 0.803130930466
Adjusted R Squar 0.778522296774
Standard Error 4.180322578537
Observations 10

ANOVA
df SS MS F Significance F
Regression 1 570.3197900955 570.3197900955 32.6361447175 0.000447725542
Residual 8 139.800774885 17.47509686062
Total 9 710.1205649805

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 26.60025120179 4.938055466501 5.386786637422 0.000656291028 15.21307487618
X Variable 1 -3.13719811854 0.549151938204 -5.71280532816 0.000447725542 -4.4035447589

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.
 Upper 95% Lower 95.0% Upper 95.0%
37.98742752741 15.21307487618 37.98742752741
-1.87085147819 -4.4035447589 -1.87085147819