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
 Firm
Bajaj Auto WC/Revenue(%) ln (Revenue)
Limited
Hero MotoCorp -1.33811719351783 10.20850229268
Limitedand
Mahindra -4.31731880741286 10.31901948636
TVS Motor
Mahindra
Company -8.32978342752718 10.6986711049
Limited
Tata Motors -11.4422604940539 9.717365784076
Limited
Majestic Auto -3.16969358919866 10.74848398095
Limited 17.5802469135802 3.008154793553
Atul Auto 9.22589313397871 5.67081152432
Ashok Leyland -1.34889177169484 9.635702874132
Force Motors 5.11663174289271 7.576543166395
Eicher Motors -7.77937477542221 9.056214358511

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 1 570.3197900955 570.3197900955 32.6361447175
Residual 8 139.800774885 17.47509686062
Total 9 710.1205649805

Coefficients Standard Error t Stat P-value

Intercept 26.6002512017941 4.938055466501 5.386786637422 0.000656291028
X Variable 1 -3.13719811854445 0.549151938204 -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
 Firms WC/Revenue(%) ln Revenue

Bajaj Auto Limited -1.33811719352 10.20850229268

Hero MotoCorp
Limited -4.31731880741 10.31901948636
Maruti Suzuki
India Limited -8.76640009855 11.10589062548
TVS Motor
Company Limited -11.4422604941 9.717365784076
Tata Motors
Limited -3.1696935892 10.74848398095
Majestic Auto
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 0.89855588081
R Square 0.807402670938
Adjusted R Square 0.783328004806
Standard Error 4.154872148448
Observations 10

ANOVA
df SS MS F Significance F
Regression 1 578.9555714071 578.9556 33.53744 0.000409
Residual 8 138.1037005596 17.26296
Total 9 717.0592719667

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

Intercept 26.47123698622 4.859701300382 5.447091 0.000611 15.26475 37.67773 15.26475
X Variable 1 -3.11271638551 0.537495208991 -5.791152 0.000409 -4.352183 -1.87325 -4.352183

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

So, For M & M, (WC/Revenue) = 26.47 - 3.1127(ln(Revenue))

So, predicted (WC/Revenue) = 26.47 - 3.1127*10.6987

= -6.83184349
Actual (WC/ Revenue) of M & M is -8.3298%
M & M must increase its WC
Upper 95.0%
37.67773
-1.87325
 Firms WC/Revenue(%) ln Revenue
Bajaj Auto
Limited -1.3381171935178 10.208502293

Hero
MotoCorp
Limited -4.3173188074129 10.319019486
Maruti Suzuki
India Limited -8.7664000985546 11.105890625

Mahindra and
Mahindra -8.3297834275272 10.698671105

TVS Motor
Company
Limited -11.442260494054 9.7173657841
Majestic Auto
Limited 17.58024691358 3.0081547936
Atul Auto 9.2258931339787 5.6708115243

Ashok Leyland -1.3488917716948 9.6357028741

Force Motors 5.1166317428927 7.5765431664

Eicher Motors -7.7793747754222 9.0562143585

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9177711317045
R Square 0.8423038501902
Adjusted R Squa 0.822591831464
Standard Error 3.889081015005
Observations 10

ANOVA
df SS MS F Significance F
Regression 1 646.29629046 646.2963 42.73047 0.000181
Residual 8 120.99960913 15.12495
Total 9 767.29589959

Coefficients Standard Error t Stat P-value Lower 95%Upper 95% Lower 95.0%
Intercept 27.51962071949 4.5535278412 6.043582 0.000308 17.01917 38.02007 17.01917
X Variable 1 -3.2943203838531 0.5039610732 -6.536855 0.000181 -4.456457 -2.132184 -4.456457

The regression is significant at 95% confidence level as the significance level is below 0.05
So, For Tata Motors, (WC/Revenue) = 27.52 - 3.2943(ln(Revenue))

So, predicted (WC/Revenue) = 27.52 - 3.2943*10.7485

= -7.88878355
Actual (WC/ Revenue) of Tata Motors is -3.1697%
Hence, it can be concluded that Tata Motors' WC can be decreased further.
Upper 95.0%
38.02007
-2.132184
 Firms WC/Revenue(%) ln Revenue
Bajaj Auto
Limited -1.3381171935178 10.208502293

Hero
MotoCorp
Limited -4.3173188074129 10.319019486
Maruti Suzuki
India Limited -8.7664000985546 11.105890625

Mahindra and
Mahindra -8.3297834275272 10.698671105

TVS Motor
Company
Limited -11.442260494054 9.7173657841
Majestic Auto
Limited 17.58024691358 3.0081547936
Atul Auto 9.2258931339787 5.6708115243
Tata Motors -3.1696935891987 10.748483981
Force Motors 5.1166317428927 7.5765431664

Eicher Motors -7.7793747754222 9.0562143585

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9090033175416
R Square 0.8262870313017
Adjusted R Squa 0.8045729102144
Standard Error 4.0917562599941
Observations 10

ANOVA
df SS MS F Significance F
Regression 1 637.10086131 637.1009 38.05298 0.0002684418
Residual 8 133.93975433 16.74247
Total 9 771.04061564

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0%
Intercept 26.75302009853 4.7315617645 5.654163 0.000479 15.842019104 37.66402 15.84202
X Variable 1 -3.1863746468451 0.5165382624 -6.16871 0.000268 -4.3775140159 -1.995235 -4.377514

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

So, For Ashok Leyland, (WC/Revenue) = 26.75 - 3.1863(ln(Revenue))

So, predicted (WC/Revenue) = 26.75 - 3.1863*9.635
= -3.9500005
Actual (WC/ Revenue) of Ashok Leyland is -1.34%
Ashok leyland must decrease its WC
Upper 95.0%
37.66402
-1.995235
 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%

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

ance level is below 0.05

rease its WC
Lower 95.0%
Upper 95.0%
16.7791 37.54529
-4.395357 -2.112826