Net Sales (million, usd) Net Income Depreciation And After Taxes Amortization (million, usd) (million, usd) Accounts Receivable (million, usd) Accounts Total Payable Inventory (million, usd) (million, usd) 4725.42 798.24 7.98 549.53 804.68 913.00 LONGi Green Energy Technology Co Ltd Semiconductor Manufacturing International Corp 3115.67 158.86 5.02 485.06 894.46 628.89 Changes in Working Capital Common Shares Outstanding Total Liabilities (million, usd) Total Liabilities And Shareholders' Total Equity (million, usd) Capital Expenditures (million, usd) -398.22 3772.02 4549.85 8518.48 3968.63 -386.34 LONGi Green Energy Technology Co Ltd Semiconductor Manufacturing International Corp -162.17 5056.87 10204.58 16437.82 6233.25 -1880.84 Price Close (usd) Historic P/E Earnings Per Share Beta Cost of Revenue (Cost of Goods 3411.72 After tax Cost of Debt, (%) 10.20 1.41 1.8% 0.34 16.89 LONGi Green Energy Technology Co Ltd Semiconductor Manufacturing International Corp Other Information tax rate 2473.21 3 0.80 2.1% 0.07 35.39 + Beta Long-term growth rate Risk free rate Market risk premium 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 Sales (million, usd) Net Income Depreciation And After Taxes Amortization (million, usd) (million, usd) Accounts Receivable (million, usd) Accounts Total Payable Inventory (million, usd) (million, usd) 4725.42 798.24 7.98 549.53 804.68 913.00 LONGi Green Energy Technology Co Ltd Semiconductor Manufacturing International Corp 3115.67 158.86 5.02 485.06 894.46 628.89 Changes in Working Capital Common Shares Outstanding Total Liabilities (million, usd) Total Liabilities And Shareholders' Total Equity (million, usd) Capital Expenditures (million, usd) -398.22 3772.02 4549.85 8518.48 3968.63 -386.34 LONGi Green Energy Technology Co Ltd Semiconductor Manufacturing International Corp -162.17 5056.87 10204.58 16437.82 6233.25 -1880.84 Price Close (usd) Historic P/E Earnings Per Share Beta Cost of Revenue (Cost of Goods 3411.72 After tax Cost of Debt, (%) 10.20 1.41 1.8% 0.34 16.89 LONGi Green Energy Technology Co Ltd Semiconductor Manufacturing International Corp Other Information tax rate 2473.21 3 0.80 2.1% 0.07 35.39 + Beta Long-term growth rate Risk free rate Market risk premium 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
