Question
Most of the companies in an industry follow a similar type of balance sheet pattern w.r.t. Capital structure, but in case of working capital, their
Most of the companies in an industry follow a similar type of balance sheet pattern w.r.t. Capital structure, but in case of working capital, their practices may differ. Here companies may learn from each other to fine-tune their working capital.
You are required to:
A. Identify the working capital requirement for your company along with two of your peers in the industry, for whom this data is available in the public domain. Also find out the length of operating cycle and cash conversion cycle for each of them.
B. Compare and contrast the positive/negative aspects of your working capital structure with these peers.
C. In the case of the less than ideal aspects, suggest a few measures for getting the working capital for your company in good shape as compared to your peers.
Step by Step Solution
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Step: 1
1 Working Capital is the capital required for day to day activity of thr business it is an important ...Get Instant Access to Expert-Tailored Solutions
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