Project on Working Capital Management - TYRE Industry Apollo Tyres JK Tyres CEAT Tyres MRF Tyres. Capital Ratios comparison.

1. Financial Management Project
On
Working Capital Management
Prateek Chaubey-24021
Rahul Tanwar-24025
Saif Abbas-24029

2. Contents
 Introduction
 Financial Ratios
I. MRF
II. Apollo
III. Ceat
IV. JK
 Industry Analysis
 Conclusion

3. Introduction
 The industries considered are all part of
the Automotive Tyre Manufacturing
Sector.
 The Working Capital Analysis for the 4
companies has been carried out.

4. MRF Analysis
All Ratios Mar’16 Mar’15 Mar’14 Mar’13
Inventory Conversion Period (In Days) 60.03 78.13 79.50 69.30
Debtor Conversion Period (In Days) 31.91 45.14 45.29 42.48
Operating Cycle (In Days) 91.94 123.28 124.78 111.77
Credit Deferral Period (In Days) 43.40 46.95 44.46 42.12
Cash Conversion Cycle (In Days) 48.54 76.33 80.32 69.66
Debtor as % of Current Assets 0.31 0.32 0.33 0.39
Inventory as % of Current Assets 0.12 0.14 0.32 0.38
Current Ratio 0.90 0.95 1.03 1.02
Inventory Turnover Ratio 1.83 2.20 4.59 5.27
Working Capital Turnover Ratio -19.73 -46.72 91.84 122.45

5. Apollo Analysis
All Ratios Mar’16 Mar’15 Mar’14 Mar'13
Inventory Conversion Period (In Days) 80.72 79.05 74.90 66.63
Debtor Conversion Period (In days) 12.85 11.45 10.76 13.67
Operating Cycle (In Days) 93.57 90.50 85.66 80.30
Credit Deferral Period (In Days) 59.33 50.85 45.41 42.21
Cash Conversion Cycle(In Days) 34.24 39.65 40.25 38.09
Debtor as % of Current Assets 0.12 0.16 0.12 0.16
Inventory as % of Current Assets 0.44 0.59 0.63 0.65
Current Ratio 1.07 0.97 0.90 0.97
Inventory Turnover Ratio 4.52 4.62 4.87 5.48
Working Capital Turnover Ratio 58.15 -125.83 -38.38 -146.73

6. CEAT Analysis
Year/CCD Mar'16 Mar'15 Mar'14 Mar’13
Inventory Conversion Period (In Days) 74.51 72.28 65.78 60.03
Debtor Conversion Period (In Days) 41.35 45.13 46.06 46.67
Operating Cycle (In Days) 115.86 117.41 111.84 106.70
Credit Deferral Period (In Days) 59.60 70.74 72.19 78.54
Cash Conversion Cycle (In Days) 56.26 46.66 39.66 28.16
Debtor as % of Current Assets 0.40 0.34 0.43 0.46
Inventory as % of Current Assets 0.43 0.32 0.43 0.39
Current Ratio 1.21 1.29 0.90 0.76
Inventory Turnover Ratio 6.17 5.05 5.55 6.08
Working Capital Turnover Ratio 21.62 12.74 -27.62 -11.35

7. JK Analysis
All Ratios Mar’16 Mar’15 Mar’14 Mar’13
Inventory Conversion Period (In Days) 80.49 69.65 71.23 69.52
Debtor Conversion Period (In Days) 76.55 72.78 64.49 59.95
Operating Cycle (In Days) 157.04 142.42 135.73 129.47
Credit Deferral Period (In Days) 94.22 83.96 75.53 80.96
Cash Conversion Cycle (In Days) 62.82 58.46 60.19 48.52
Debtor as % of Current Assets 0.47 0.51 0.51 0.43
Inventory as % of Current Assets 0.29 0.30 0.32 0.38
Current Ratio 0.96 0.91 0.95 0.91
Inventory Turnover Ratio 4.53 5.24 5.12 5.25
Working Capital Turnover Ratio -54.66 -25.97 -49.52 -27.02

8. Cost of Rubber
(most produced product)
Product Name Value
% of RM cost
to Total Cost
MRF 5,708.62 51.14
Apollo Tyres 2,433.61 52.43
JK Tyre 1,753.07 52.96
Ceat 1,451.97 49.16
in Rs. Cr.

9. Competitors
Company
Name
Last Price Market Cap.
Sales
Turnover
Net Profit
Total
Assets
MRF 47,270.50 20,048.10 20,243.94 2,327.72 8,767.84
Apollo 180.85 9,205.71 8,701.64 844.86 4,582.72
JK 118.4 2,685.47 5,880.43 400.96 3,794.64
Ceat 1,161.05 4,696.46 5,494.15 452.52 2,603.13

10. Inventory conversion period
74.51
72.28
65.78
60.03
80.72
79.05
74.9
66.63
60.03
78.13
79.5
69.3
80.49
69.65
71.23
69.52
0
10
20
30
40
50
60
70
80
90
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

11. Debtor conversion period
41.35
45.13 46.06 46.67
12.85
11.45 10.76
13.67
31.91
45.14 45.29
42.48
76.55
72.78
64.49
59.95
0
10
20
30
40
50
60
70
80
90
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

12. Operating cycle
115.86 117.41
111.84
106.7
93.57
90.5
85.66
80.3
91.94
123.28 124.78
111.77
157.04
142.42
135.73
129.47
0
20
40
60
80
100
120
140
160
180
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

13. Credit deferral period
59.6
70.74
72.19
78.54
59.33
50.85
45.41
42.2143.4
46.95
44.46
42.12
94.22
83.96
75.53
80.96
0
10
20
30
40
50
60
70
80
90
100
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

14. Cash conversion cycle
56.26
46.66
39.66
28.16
34.24
39.65 40.25
38.09
48.54
76.33
80.32
69.66
62.82
58.46
60.19
48.52
0
10
20
30
40
50
60
70
80
90
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

15. Debtors as % of Current Assets
0.4
0.34
0.43
0.46
0.12
0.16
0.12
0.16
0.31
0.32
0.33
0.39
0.47
0.51
0.5
0.43
0
0.1
0.2
0.3
0.4
0.5
0.6
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

16. Inventory as % of Current Assets
0.43
0.32
0.43
0.39
0.44
0.59
0.63
0.65
0.12
0.14
0.32
0.38
0.29
0.3
0.32
0.38
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

17. Current Ratio
1.21
1.29
0.9
0.76
1.07
0.97
0.9
0.97
0.9
0.95
1.03 1.02
0.96
0.91
0.95
0.91
0
0.2
0.4
0.6
0.8
1
1.2
1.4
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

18. Inventory Turnover Ratio
6.17
5.05
5.55
6.08
4.52
4.62
4.87
5.48
1.83
2.2
4.59
5.27
4.53
5.24
5.12
5.25
0
1
2
3
4
5
6
7
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

19. Working capital turnover ratio
21.62
12.74
-27.62
-11.35
58.15
-125.83
-38.38
-146.73
-19.73
-46.72
91.84
122.45
-54.66
-25.97
-49.52
-27.02
-200
-150
-100
-50
0
50
100
150
March '16 March '15 March '14 March '13
CEAT
APOLLO
MRF
JK

21. COMPARISION OF FINANCIAL POSITION
COMPANY MRF Apollo Tyres Ceat JK Tyre & Ind
Year Mar '16 Mar '16 Mar '16 Mar '16
Sources Of Funds
Total Share Capital 4.24 50.9 40.45 45.36
Equity Share Capital 4.24 50.9 40.45 45.36
Share Application Money 0 0 0 0
Preference Share Capital 0 0 0 0
Reserves 6,790.09 3,942.38 1,950.81 1,371.31
Revaluation Reserves 0 3.12 0 0
Networth 6,794.33 3,996.40 1,991.26 1,416.67
Secured Loans 1,056.64 244.79 556.45 2,229.51
Unsecured Loans 916.87 341.51 55.43 148.46
Total Debt 1,973.51 586.3 611.88 2,377.97
Total Liabilities 8,767.84 4,582.70 2,603.14 3,794.64
Gross Block 8,125.62 5,153.74 2,832.25 5,216.38
Less: Accum. Depreciation 3,531.82 2,052.43 869.7 1,888.98
Net Block 4,593.80 3,101.31 1,962.55 3,327.40
Capital Work in Progress 1,058.40 386.87 213.45 88.92
Investments 2,789.31 793.75 267.9 91.59
Inventories 1,879.74 1,022.90 619.25 739.68
Sundry Debtors 1,831.72 292.76 577.94 1,210.48
Cash and Bank Balance 80.45 289.38 24.16 62.44
Total Current Assets 3,791.91 1,605.04 1,221.35 2,012.60
Loans and Advances 575.69 987.02 292.49 832.93
Fixed Deposits 0 0 0 0
Total CA, Loans & Advances 4,367.60 2,592.06 1,513.84 2,845.53
Deffered Credit 0 0 0 0
Current Liabilities 3,682.10 1,748.26 1,246.74 2,181.68
Provisions 359.17 543.01 107.87 377.12
Total CL & Provisions 4,041.27 2,291.27 1,354.61 2,558.80
Net Current Assets 326.33 300.79 159.23 286.73
Miscellaneous Expenses 0 0 0 0
Total Assets 8,767.84 4,582.72 2,603.13 3,794.64
Contingent Liabilities 1,062.61 563.18 548.9 100.68
Book Value (Rs) 16,020.04 78.45 492.28 62.46
Application Of Funds

22. Thank You