Short term bank finance is also used to finance the Ratio analysis of hero honda receivables. By the use of these techniques they are able to reduce the amount of inventory blocked in the inventory. But again as compared to Hero Honda the company seems less aggressive which can be seen from the higher values of its current ratio.
Generally the payment period for the creditor is more than the collection period from debtors and the period for which cash and bank balance is required.
Keep an eye on Hero MotoCorp Ltd. The current ratio of the company is very low this is discussed later which indicates that the company is following aggressive policy. This is further coupled with good distribution management system.
Under this policy the company does not have the short term liquidity but the amount blocked in the net working capital is zero which gives the company more profitability. If you see a huge spike, you should know why.
Around 1, rural outlets have been created in towns with population of 25, and below. Whereas in the case of industry like some sensitive industry conservative policy is adopted which is opposite of aggressive policy. In the case of hero Honda we see a gradual increase in the inventory turnover whereas in case of bajaj auto ltd there is a sudden increase the reason cited is the better percentage increase in the sales of hero Honda and also the raw mater costs as a perentage of total sales increase from The company has a network of dealers and over 1, authorised service centers and exclusive three-wheeler dealers spread across the country.
For example when any dealers are shortage of the products then the demand is directly is send to the companies so the time gap is reduced in placing the order and then receiving the order. These stores are called " Bajaj Probiking". IT has a direct online network with its suppliers to ensure a seamless flow of parts from vendors to its units.
In India for financing its current asset is done by various techniques like discounting of bills receivables, obtaining short term bank borrowings etc, but in India use of deferral credit is also a popular technique for financing the current assets of the company.
Whenever the company receives the material they issue the material directly to the shop floor with the use of these techniques. The tvs is also trying to decrease their wip conversion period and we can see a constant decline in their wip conversion period.
Using supply chain management system, the company also reduces the time of converting raw material into finished goods and then selling it to end customers. Presence of short term borrowings: Upgrade Membership to see this financial chart.
It eliminates the need to obtain different applications for each of the business needs.
Such style is followed in industry like automobile industry. The hero Honda is cashing on the better relationship with their suppliers and the cash discount they give, they are capitalizing on that. Also their operational efficiency and their e-kanban system is in place.
They use the JIT system and all this decreases their wip conversion period. In the intervening years the borrowings from the bank were minimal and was even nil for the year Ratio Analysis of Hero Honda. hero honda project report. Documents Similar To ratio analysis on hero honda.
Skip carousel. hero honda project. Uploaded by. milancomputers. hero motocorp. Uploaded by. Dipesh Mehta. Hero Honda- Profit & loss A/c, Balance sheet. Uploaded by. danishreza. Hero Motor’s average interest coverage ratio over the last 5 financial years has been times which indicates that the Company has been generating enough for the shareholders after servicing its debt obligations.
The cash flow statement provides information about Honda Motor Co. Ltd.'s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on Honda Motor Co. Ltd.'s statement of financial position.
Current Ratio Current ratio Hero Motocorp Bajaj Auto TVS Motor Mah Scooters Atul Auto Quick Ratio Quick Ratio Hero Motocorp Bajaj Auto TVS Motor Mah Scooters Atul Auto 5 Forces Analysis Of Hero Motocorp Hero MotoCorp Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New Delhi, India.
Hero Honda started in as a joint venture between Hero Cycles of India and Honda of Japan.
The company is the largest two wheeler manufacturer in India. Get Hero Motocorp latest Key Financial Ratios, Financial Statements and Hero Motocorp detailed profit and loss accounts.Download