This document analyzes trends in working capital ratios for Bajaj Auto from 2011-2016. It discusses several key liquidity and efficiency ratios, including: - The current ratio, which measures a company's current assets against current liabilities, increased from 0.80 to 1.27 over the period. - The inventory turnover ratio, which measures how many times average inventory is sold during a period, fluctuated between 27.66-33.35 times over the period. - The debtor turnover ratio, which measures how quickly a company collects debts, ranged from 25.77 to 49.9 times over the period. - The fixed asset turnover ratio, which measures revenues generated per unit of

1. A study on trend analysis 0f working capital of bajaj Auto
2011-2016
SUBMITTED TO- SUBMITTED BY-
DR. MAYANK KUMAR SHIVIKA SINGH-BM016229
VISHAL CHUG-BM016271
VIVEK TYAGI-BM016282
RAHUL KUMAR- BM016288
SHOBHIT BHATNAGAR BM016230

2. Introduction
BAJAJ AUTO LIMITED IS AN INDIAN TWO-WHEELER AND THREE-WHEELER
MANUFACTURING COMPANY. BAJAJ AUTO MANUFACTURES AND SELLS
MOTORCYCLES, SCOOTERS AND AUTO RICKSHAWS. BAJAJ AUTO IS A PART OF
THE BAJAJ GROUP. IT WAS FOUNDED BY JAMNALAL BAJAJ IN RAJASTHAN IN
THE 1940S. IT IS BASED IN PUNE.
BAJAJ AUTO IS THE WORLD'S SIXTH-LARGEST MANUFACTURER OF
MOTORCYCLES AND THE SECOND-LARGEST IN INDIA. ON MAY 2015, ITS
MARKET CAPITALIZATION WAS ₹640 BILLION (US$9.5 BILLION), MAKING IT
INDIA'S 23RD LARGEST PUBLICLY TRADED COMPANY BY MARKET VALUE. BAJAJ
AUTO'S EQUITY SHARES ARE LISTED ON BOMBAY STOCK EXCHANGE WHERE IT
IS A CONSTITUENT OF THE BSE SENSEX INDEX,AND THE NATIONAL STOCK
EXCHANGE OF INDIA WHERE IT IS A CONSTITUENT OF THE CNX NIFTY

3. Liquidity Ratios:-Liquidity ratios are used to determine a company’s ability to meet its
short-term debt obligations
Current Ratios:- the current ratio measures a company’s current assets against its current
liabilities.
Quick Ratio:- is a liquidity ratio that is more refined and more stringent than the current
ratio. Instead of using current assets in the numerator, the quick ratio uses a figure that
focuses on the most liquid assets.

4. Current ratio:-
year ratio
2016 1.27
2015 .89
2014 .80
2013 .88
2012 .95

5. Trend:-
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2016 2015 2014 2013 2012
ratio

6. Quick ratio trend :-
0
0.2
0.4
0.6
0.8
1
1.2
2016 2015 2014 2013 2012
ratio

7. Interpretation:-
 In 2016 the current liabilities got reduced to the maximum
 In 2014 the liabilities with the firm was maximum which reduces the ratio
 In 2015 current Assets were maximum
 In all the cases current ratio is lower than the ideal ratio.

8. INVENTORY TURNOVER RATIO
 The inventory turnover ratio is an efficiency ratio that shows how
effectively inventory is managed by comparing cost of goods sold with
average inventory for a period. This measures how many times average
inventory is "turned" or sold during a period.

9. INVENTORY TURNOVER RATIO
YEAR TREND RATIO
2012 100 30.18
2013 110 33.2
2014 109.6 33.08
2015 91.65 27.66
2016 110.5 33.35
0
20
40
60
80
100
120
2012 2013 2014 2015 2016
INVENTORY TURNOVER RATIO
TREND Column1 Column2

10. DEBTOR TURNOVER RATIO
 Ratio of net credit sales to average trade debtors is called debtors
turnover ratio. It is also known as receivables turnover ratio. This ratio is
expressed in times.

11. DEBTOR TURNOVER RATIO
YEAR TREND RATIO
2012 100 49.9
2013 67.33 33.6
2014 51.64 25.77
2015 57.25 28.57
2016 63.3 31.62
0
20
40
60
80
100
120
2012 2013 2014 2015 2016
DEBTOR TURNOVER RATIO
TREND

12. FIXED ASSET TURNOVER RATIO
 Asset turnover ratio is the ratio of the value of a company’s sales or
revenues generated relative to the value of its assets The Asset Turnover
ratio can often be used as an indicator of the efficiency with which a
company is deploying its assets in generating revenue.

13. FIXED ASSET TURNOVER RATIO
YEAR TREND RATIO
2012 100 5.75
2013 90.7 5.22
2014 85.91 4.94
2015 91.65 5.27
2016 91.82 5.28
75
80
85
90
95
100
105
2012 2013 2014 2015 2016
FIXED ASSET TURNOVER RATIO
TREND Column1 Column2