ppt on wcm

7/31/2019 ppt on wcm

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In

Liberty Shoes Pvt Ltd.

WORKING CAPITAL

MANAGEMENT

Presented

By:

Pankaj Kumar

Roll

No:M

-

1116


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Liberty Group began its operations 50 years ago in 1954,the city of Karnal, Haryana.

More than 5,000 employees work there.

Liberty Shoes produces more than 50,000 pairs in a day,

leading footwear manufacturer today. The group has an annual turnover of Rs.600 crores

approximately.

Liberty mainly export market in Germany, U. K, France,

Spain, Hungary.


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The goal of working capital management is tomanage the firms current assets and currentliabilities in such way that the satisfactorylevel of working capital is mentioned.


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Types of working capital


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.


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To study the working capital management of company.

To study the optimum level of current assets and current

liabilities of the Company.

To study the liquidity position through various working

capital related Ratio

To evaluate the performance of the Liberty Shoes Ltdwith the help of debtors, cash and inventory position.


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A properly defined research methodology is a requirement for

carrying out the successful research which in turn demandsclear objectives.

Research problem: to analyze the financial data of

Research design in this project is in

nature, as it seeks to discover facts, ideas, insight and to bring

out new relationship among the data items already existing.

Secondary Data-Secondary data are those data which are

collected and which has been passed through statistical

research.


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: has been

used because sample is selected by own view

Sample Universe of the study is

Sample Populationisthefinancial statement

of

sampleis taken for the purpose of my study is thefinancial statement of last 3 years of the company.

Ratio Analysis is used for analysis the Performance of the company.


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3.293.15

2.36

0

0.5

1

1.5

2

2.53

3.5

2009-10 2010-11 2011-12

180.59 182.60 229.31

54.75

57.94

96.78

3.29 3.15 2.36


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0

1

2

2009-102010-11

2011-12

1.91.83

1.3

104.4 106.43 126.51

54.75 57.94 96.78 1.90 1.83 1.30


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0

0.02

0.04

0.06

0.08

0.1

0.12

2009-10

2010-11

2011-12

0.096

0.075

0.103

Cash ratio

5.15 4.13 10.05

53.37 54.75 96.78 .096 .075 .103


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0

1

2

3

2009-10

2010-11

2011-12

2.23

1.81

2.91

Inventory Turnover Ratio

160.19 138.02 303.20

71.73 76.18 102 2.23 times 1.81 times 2.97 times


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149.27 133.45 138.02*

71.42 72.25 66.79 2.09 times 1.84 times 2.06 times

1.7

1.8

1.9

2

2.1

2009-10

2010-11

2011-12

2.09

1.84

2.06

Debtors Turnover Ratio


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0.5

1

1.5

2

2.5

3

2009-10

2010-11

2011-12

1.91 2.092.05

W C turnover ratio

240.44 260.66 296.94

125.46 124.50 144.75 1.91 2.09 2.05


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Short term liquidity of the company is not good becausecurrent & quick ratio is decrease in 2012.

The cash ratio has increased .075 to .103 in year 2012 but itis not in sound condition for company.

Inventory turnover shows that the company start efficientused in generating the inventory into sales in 2012.

Debtor management system is efficient because its startincrease in 2012, timely payment received from debtors.

Working capital management system start decrease in 2012but overall it is not bad.

But overall company is in a stronger position because profitshave increased with in which isin


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Short term liquidity of the company is not goodbecause current & quick ratio is decrease in2012. It should improve

The company should improve cash ratio which isincreased .075 to .103 in year 2012 but it is notin sound condition for the company.

Working capital management system is not quiteefficient in 2012 because its ratio is alsodecrease in 2012. So, it should also improve innext years.

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