Cash Management Practices in Hero MotoCorp Limited: An Analytical Perspective.

Authors: Dr. G. Vidya Sagar Rao

Country: India

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Abstract: The need for Cash to run the day-to-day business activities cannot be overemphasized. One can hardly find a business firm, which does not require any amount of Cash. Indeed, firms differ in their requirements of the Cash. A firm should aim at maximizing their wealth. In its endeavor to do so, a firm should earn sufficient return from its operation. The firm has to invest enough funds in current asset for generating sales. Current asset are needed because sales do not convert into cash instantaneously. There is always an operating cycle involved in the conversion of sales into cash. The objectives are to analyze the Cash management and to determine efficiency in cash, inventories, debtors and creditors. Further, to understand the liquidity and profitability position of the firm. These objectives are achieved by using ratio analysis and then arriving at conclusions, which are important to understand the efficiency / inefficiency of Cash. The company goes in insufficient manner in the past five years. So the company takes steps to improve the performance and concentrate in local areas. The company financial capacities are low and borrow funds from the government and outsiders. It creates liabilities for the company. The working capital is reducing from year to year. So they should take some necessary steps for adding more amounts to working capital.

Keywords: Cash management, turnover, ratio, working capital

Paper Id: 232065

Published On: 2021-03-03

Published In: Volume 9, Issue 2, March-April 2021

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