# Analysis report Liquidity analysis Part C

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6. Inventory Turnover in Days =Average inventory /cost of goods sold /365

 Year Calculation Inventory turnover in days 2010 170383549/1360587791/365 45.71 2009 271581613/1196613437/365 82.84 2008 446445975/918892642/365 177.34 2007 285491246/786936769/365 132.42 2006 142697042/775729109/365 67.14

7. Operating cycle = Account Receivables turnover in days + inventory turnover in days

 Year Calculation Operating cycle 2010 10.68 + 45.71 56.39 2009 13.99+82.84 96.83 2008 6.46+177.34 183.80 2007 9.26+132.42 141.68 2006 7.24+67.14 74.38

8. Working Capital = Current Assets – Current Liabilities

2010          412015021-579661374 =(167646353)

2009        341213426-500024071 =(158810645)

2008         570772513-849655279 =(278882766)

2007         349857857-524449185 =(174591328)

2006         390666841-457793528 =(67126687)

9. Current Ratio = Current Assets/ Current Liabilities

 Year Calculation Current Ratio 2010 412015021/579661374 0.71 2009 341213426/500024071 0.68 2008 570772513/849655279 0.671 2007 349857857/524449185 0.67 2006 390666841/457793528 0.85

10. Quick Ratio= (current assets-prepaid- inventory)/Current Liabilities

 Year Calculation Quick Ratio 2010 412015021-557765-124202630/579661374 0.50 2009 341213426-315410-92361838/500024071 0.50 2008 570772513-363839-358439549/849655279 6.30 2007 349857857-391140-176012852/524449185 0.33 2006 390666841-369790-218956788/457793528 0.374

11. Cash Ratio = (cash equivalents + Marketable Securities)/Current Liabilities

 Year Calculation Cash Ratio 2010 2660699+0/579661374 0.0046 2009 13350301+0/500024071 0.027 2008 8772110+0/849655279 0.010 2007 1170509+0/524449185 0.0022 2006 9553415+0/457793528 0.021

12. Sales to working Capital = Sales /Average working Capital

 Year Calculation Sales to Working Capital 2010 1387004223/(163228499) (8.50) 2009 1379043093/(218846705.5) (6.30) 2008 953846228/(226737047) (4.21) 2007 747731624/(120859007.5) (6.19) 2006 913370379/(24953748) (36.60)

Working Note:

Average working Capital=(Opening working Capital +Closing working Capital)/2

2010       (158810645)+(167646353))/2 =(163228499)

2009       ((278882766)+ (158810645))/2 =(218846705.5)

2008       ((174591328)+ (278882766))/2 =(226737047)

2007       ((67126687)+ (174591328))/2 =(120859007.5)

2006       (17219191+(67126687))/2 =(24953748)

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