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Hero MotoCorp Financial Performance 2018

Hero MotoCorp's working capital increased by $30.36 million in 2018. Its current ratio improved from 1.76 in 2016 to 2.01 in 2018, indicating good short-term financial strength. Hero MotoCorp's inventory turnover was 26.38 in the six months ending March 2018, while its inventory to revenue ratio was 0.03 over the same period. The company's debt to equity ratio was 0.02 as of March 2018, showing low use of debt financing for growth.

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14 views2 pages

Hero MotoCorp Financial Performance 2018

Hero MotoCorp's working capital increased by $30.36 million in 2018. Its current ratio improved from 1.76 in 2016 to 2.01 in 2018, indicating good short-term financial strength. Hero MotoCorp's inventory turnover was 26.38 in the six months ending March 2018, while its inventory to revenue ratio was 0.03 over the same period. The company's debt to equity ratio was 0.02 as of March 2018, showing low use of debt financing for growth.

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Bro Slow
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Working Capital Analysis of Hero MotoCorp.

Year 2016 2017 2018


Change In 48.28 66.86 66.86
Working Capital

Year 2016 2017 2018


Change In 14.86 8.12 -39.06
Inventory

Year 2016 2017 2018


Current Ratio 1.76 1.81 2.01

Year 2018
Debt-Equity Ratio 0.50

Year 2018
Inventory-Turnover Ratio 26.38

Hero MotoCorp Ltd's change in working capital for the fiscal


year that ended in March 2018 was $30.36 Mil. Working Capital is a
measure of a company's short-term liquidity or its ability to cover
short-term liabilities. Hero MotoCorp Ltd's Current Portion of long-
term debt for the quarter that ended in March 2018 was $12.03 Mil.
Hero MotoCorp Ltd's long-term Debt & capital lease obligation for
the quarter that ended in March 2018 was $23.01 Mil. Hero
MotoCorp Ltd's Total Stockholders Equity for the quarter that ended
in March 2018 was $1,840.47 Mil. Hero MotoCorp Ltd's debt to
equity for the quarter that ended in March 2018 was 0.02. A high
debt to equity ratio generally means that a company has been
aggressive in financing its growth with debt. This can result in volatile
earnings because of the additional interest expense. It is calculated
as a company's Total Current Assets divides by its Total Current
Liabilities. Hero MotoCorp Ltd's current ratio for the quarter that
ended in March 2018 was 2.01. It generally indicates good short-
term financial strength. Hero MotoCorp Ltd's days
inventory declined from March 2016 (15.78) to March 2018
(13.83). Hero MotoCorp Ltd's Inventory Turnover for the six
months ended in March 2018 was 26.38.  Hero MotoCorp
Ltd's Inventory-to-Revenue for the six months ended in March
2018 was 0.03.

Performance of a company measured in financial terms, the success


of the firm depends on how it is perceived by and reacts to the
external economics markets. The field of managing fiancé is much
more complicated and faster faces today. Financial managers need
to know how effective decisions can be made and ineffective ones be
avoided.

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