a a fes| Totalt aa -- | ML card Bes | - - HE to T | ) Part I: WCM (11 Marks) a) Calculate the Average Age of Inventory (AAI), Average Collection Period (ACP) and Average Payment Period (APP) of LONGi Green Energy Technology Co Ltd (Longi, for short). (3 marks) Click here to enter text. b) Calculate Longi's Operating Period (OP) and Cash Conversion Cycle (CCC). (2 marks) Click here to enter text. c) Consider Semiconductor Manufacturing International Corp as the 'peer' company for Longi. Calculate the Operating period and Cash Conversion Cycle for Semiconductor Manufacturing and comment on the similarities or differences. What does it tell you about Longi's WCM? (3 marks) Click here to enter text. d) Identify different working capital management strategies companies may use to minimise their cash conversion cycle. Based on the the answers above, which strategy do you think Longi should focus on first (i.e. which will give it the greatest potential improvement in its working capital management)? Explain your answer.- (3 marks) Click here to enter text. Net Income Depreciation And After Taxes Amortization (million, usd) (million, usd) 798.24 7.98 Accounts Receivable (million, usd) Accounts Total Payable Inventory (million, usd) (million, usd) 549.53 804.68 913.00 158.86 894.46 628.89 Common Shares Outstanding 5.02 485.06 Total Liabilities Total Liabilities And (million, usd) Shareholders' 4549.85 8518.48 Total Equity (million, usd) Capital Expenditures (million, usd) 3772.02 3968.63 -386.34 SO56.87 1020458 16437.82 6233.25 GICS Industry Net Sales Name (million, usd) LONGi Green Energy Semiconductors & Semiconductor 4725.42 Technology Co Ltd Equipment Semiconductor Semiconductors & Manufacturing International Semiconductor 3115.67 Corp Equipment LONGi Green Energy Semiconductors & Changes in Semiconductor Technology Co Ltd Working Equipment Capital Semiconductor Semiconductors & Manufacturing International Semiconductor -398.22 Corp Equipment LONGi Green Energy Semiconductors & Semiconductor -162.17 Technology Co Ltd Equipment Semiconductor Semiconductors & Cost of Manufacturing International Semiconductor Revenue (Cost Corp Equipment of Goods LONGi Green Energy Semiconductors & Semiconductor 3411.72 Technology Co Ltd Equipment Semiconductor Manufacturing Semiconductors & Semiconductor 2473.21 International Comp Equipment Other Information tax rate 25.00% Beta 1.4 Long-term growth rate 1.50% Risk free rate 2.449 Market risk premium 6.26% -1880.84 Price Close (usd) Beta After tax Cost of Debt, (%) Earnings Per Share Historic P/E 10.20 1.41 1.8% 0.34 16.89 0.80 2.1% 0.07 35.39 + a a fes| Totalt aa -- | ML card Bes | - - HE to T | ) Part I: WCM (11 Marks) a) Calculate the Average Age of Inventory (AAI), Average Collection Period (ACP) and Average Payment Period (APP) of LONGi Green Energy Technology Co Ltd (Longi, for short). (3 marks) Click here to enter text. b) Calculate Longi's Operating Period (OP) and Cash Conversion Cycle (CCC). (2 marks) Click here to enter text. c) Consider Semiconductor Manufacturing International Corp as the 'peer' company for Longi. Calculate the Operating period and Cash Conversion Cycle for Semiconductor Manufacturing and comment on the similarities or differences. What does it tell you about Longi's WCM? (3 marks) Click here to enter text. d) Identify different working capital management strategies companies may use to minimise their cash conversion cycle. Based on the the answers above, which strategy do you think Longi should focus on first (i.e. which will give it the greatest potential improvement in its working capital management)? Explain your answer.- (3 marks) Click here to enter text. Net Income Depreciation And After Taxes Amortization (million, usd) (million, usd) 798.24 7.98 Accounts Receivable (million, usd) Accounts Total Payable Inventory (million, usd) (million, usd) 549.53 804.68 913.00 158.86 894.46 628.89 Common Shares Outstanding 5.02 485.06 Total Liabilities Total Liabilities And (million, usd) Shareholders' 4549.85 8518.48 Total Equity (million, usd) Capital Expenditures (million, usd) 3772.02 3968.63 -386.34 SO56.87 1020458 16437.82 6233.25 GICS Industry Net Sales Name (million, usd) LONGi Green Energy Semiconductors & Semiconductor 4725.42 Technology Co Ltd Equipment Semiconductor Semiconductors & Manufacturing International Semiconductor 3115.67 Corp Equipment LONGi Green Energy Semiconductors & Changes in Semiconductor Technology Co Ltd Working Equipment Capital Semiconductor Semiconductors & Manufacturing International Semiconductor -398.22 Corp Equipment LONGi Green Energy Semiconductors & Semiconductor -162.17 Technology Co Ltd Equipment Semiconductor Semiconductors & Cost of Manufacturing International Semiconductor Revenue (Cost Corp Equipment of Goods LONGi Green Energy Semiconductors & Semiconductor 3411.72 Technology Co Ltd Equipment Semiconductor Manufacturing Semiconductors & Semiconductor 2473.21 International Comp Equipment Other Information tax rate 25.00% Beta 1.4 Long-term growth rate 1.50% Risk free rate 2.449 Market risk premium 6.26% -1880.84 Price Close (usd) Beta After tax Cost of Debt, (%) Earnings Per Share Historic P/E 10.20 1.41 1.8% 0.34 16.89 0.80 2.1% 0.07 35.39 +
