Hindustan Oil Exploration Company Ltd.

Financial Management Assignment

MBA 2nd Semester
Section 3
Group no: 13

Submitted To: Submitted By:

Prof. Yashveer Singh Gurjar Shreya Bhatt

Priyank Singh
Madhu Milan Sahu
WORKING CAPITAL RATIOS

1. WORKING CAPITAL TURNOVER RATIO:

Net annual Sales

Average working Capital

Working capital turnover ratio –

Working capital turnover ratio is the ratio between the net revenue or turnover of a business
and its working capital. 

1. Working capital Turnover ratio :

WC= Current asset – Current Liability
Formula = Net annual sales/ working capital

2021 : 330-107= 223

= 99.44/223
= 0.445
2020 : 316- 132= 184
= 179.84/184
= 0.977
2019 : 220- 41= 179
=236.89/179
=57.89
2018 : 193- 42= 151
= 48.71/151
=0.322
2017 : 225- 67= 158
= 25.02/158
=0.158

*Note:- We have calculated the working capital ratio by taking the

values from standalone.
*Note:- We had taken the consolidated values for Inventory turnover
ratio, Debtor turnover ratio .
Inventory Turnover Ratio :-
ITR = cost of good sold
Average Inventory
2021
99.44 = 3.15
31.57
2020
179.84 =7.60
23.663
2019
236.89 = 9.53
24.857
2018
48.71 = 1.72
28.319
2017
25.02 = 1.04
24.057
Debtors Turnover Ratio :-
DTR= Net Credit Sales/Average Account Receivable
2021
4735.38 = 3.38
1401
2020
9207.4 = 5.23
1760.5
2019
18058 = 9.24
1954.4
2018
3616.4 = 4.50
803.65
2017
713.03 = 5.55
128.475
TREND ANALYSIS OF OPERATING, INVESTING AND FINANCING

Cash from operating activities-

2017 2018 2019 2020 2021
−20.56M 1.73B 3.20B −715.65M —
−102.01% +8510.34% +85.31% −122.33% +100.00%

Cash from investing activities

2017 2018 2019 2020 2021

−653.88M −1.53B −2.99B −2.13B —
−83.30% −134.43% −94.74% +28.51% +100.00
Cash from financing activities

2017 2018 2019 2020 2021

0.00 0.00 17.50M 2.06B -
- - - +11680.45% −100.00%

Trend Analysis of Hindustan Oil Exploration Company Ltd.

Basically, cash flow refers to the net balance of cash moving into and out of a
business at a specific point in time. Therefore, we have taken the data of
Hindustan Oil Exploration Company Ltd. of the past 5 years from which we get
to know about cash from operating activities, cash from investing activities and
cash from financing activities.
Cash from operating activities; in 2016 was 1.02B in 2017 it dropped to -
20.56M than in 2018 it was increased by +8510.34% which is 1.73B again in
2019 it increased by +85.31% which is 3.20 B and in 2020 it decreased by -
122.33% which is -715.6M

Cash from investing activities; in 2016 was -356.73M , In 2017 it was -

653.88M , In 2018 -1.53B , In 2019 -2.99B and In 2020 it was -2.13B . Balance
for the last five years was negative

Cash from financing activities ; in 2016 was 0.00 , In 2017 0.00 , In 2018 it
was 0.00. Then In 2019 17.50M and in 2020 2.06B