Company Name: ITC Ltd

Part A - Working Capital Analysis 2022 2021

CURRENT ASSETS Formula
Current Investments 12,264 14,846
Inventories 10,974 10,507
Trade Receivables 2,462 2,502
Cash And Cash Equivalents 4,654 4,659
Short Term Loans And Advances 7 3
OtherCurrentAssets 3,871 2,474
TOTAL CURRENT ASSETS 34,232 34,992

CURRENT LIABILITIES
Short Term Borrowings 1 4
Trade Payables 4,417 4,319
Other Current Liabilities 7,666 6,173
Short Term Provisions 80 194
TOTAL CURRENT LIABILITIES 12,164 10,690

Sales/ Revenue 64,618.23 52,835.15

Working Capital Total CA - Total CL 22,068 24,302
% of Working Capital on Revenue Working Capital / Revenue 0.35 0.46
Changes in Working Capital Previour Year W.Cap - Current Year W.Cap 2,234 5,643

Sales/ Revenue
Turnover Ratios
Inventory Turnover Ratio Sales / Inventory 5.88 5.02
Receivables Turnover Ratio Sales / Receivables 26.24 21.11
Payables Turnover Ratio Sales */ Payables 14.62 12.23
Operating Cycle/Cash Convesion Cyle Number of Times (ITR +RTR - PTR) 17.50 13.90
Number of Days (365 days/OC Times) 20.85 26.25

* Instead of Purchase data, we can use Sales for Payables Turnover calculation
Interpretation:
The net working capital was positive from 2018 to 2022 due to less current liabilities.

The net working capital position improved in 2019 and 2020 which shows that the company can meet its day to day expenses using these funds.

The cash conversion cycle ranged from 21 days to 83 days. In fact in 2022, the cash conversion period was reduced to 21 days.

All this discussion shows that the company is improving its working capital management.

Part B - Dividend Summary

2022 2021
Dividend per share* 6.25 5.75
Dividend rate* 625 575

Dividend Yield Ratio Market Price as on 31.3.** 253.75 220.05

DPS/Market Price 2.40% 2.60%
* Refer moneycontrol.com ** Refer BSE - Year data
Interpretation:
The company has paid a dividend every year to their equity holders, and at the same time, the dividend rate and dividend per share have also gradually increased y

As compared with the stock market price of the company, the dividend yield is only between 1.9% and
5.7%.

The overall dividend policy of the company looks good, and it helps them retain their equity holders.

There was a huge increase in dividend per share in the year 2020.
 2020 2019 2018

17,948 13,348 10,569

8,966 7,944 7,585
2,562 4,035 2,682
7,277 4,152 2,900
6 7 6
2,745 2,262 2,652
39,505 31,747 26,394

1 2 17
3,630 3,510 3,496
5,780 6,449 5,673
148 51 64
9,560 10,012 9,250

50,968.50 49,348.43 47,362.51

29,945 21,735 17,114
0.57 0.43 0.37
-8,210 -4,621 2,034

5.68 6.21 6.24

19.89 12.22 17.65
14.04 14.05 13.54
 11.53 4.38 10.35
31.65 83.33 35.26

penses using these funds.

2020 2019 2018

10.15 5.75 5.15
1015 575 515

177.80 296.70 255.90

5.70% 1.90% 2.00%

re have also gradually increased year by year except for 2020.