the international journal of analytical and experimental...

LIQUIDITY MANAGEMENT OF SELECT TYRE COMPANIES IN

INDIA – AN ANALYSIS

R.BASKAR

Ph.D. Research Scholar in Commerce,

Annamalai University, Annamalai Nagar, Chidambaram, Tamil Nadu-608 002, India.

E-mail:[email protected]

Dr. M.BHARATH, Ph.D.

Assistant Professor and Research Supervisor,

(On Deputation from Annamalai University), PG and Research Department of Commerce,

Thiru.Vi.Ka. Govt. Arts College, Thiruvarur – 3, Tamil Nadu, INDIA.

E-mail: [email protected]

Mobile No.: +91 99652 – 82049

ABSTRACT

Liquidity is one of the most relevant factors to determine the investment decision of

the company’s shareholders. The term liquidity is to meet current obligations to face short

term financial problems. The present study based on secondary data and the data were

collected from the published annual reports and various research articles, newspapers etc. The

present period of study covered for ten years from 2008-2009 to 2017-2018. The researcher

has been used tools for analysis of Liquidity Ratios, Mean, Standard Deviation, Coefficient of

Variation and Compounded Annual Growth Rate (CAGR). A researcher has to analyze the

liquidity management of select Tyre companies in India. The liquidity position of MRF Tyre

Ltd, Balkrishna Industries Ltd. Apollo tyre Ltd. was satisfactory and the other rest of the

company was not satisfactory during the study period. At the same time, the cash position of

Good Year Ltd. was satisfactory level rest of the companies was not maintain the adequate

level of cash position at standard norms 0.50:1 time. Hence, during the study period 2016-

2017 to 2017-2018 the entire tyre companies to slightly down of the financial position. The

average collection period of Apollo tyre Ltd. was good performance other rest of the

companies to be not performing well.

KEYWORDS: Working Capital, Current Ratio, Liquid Ratio, Absolute liquid Ratio, Debtor

Turnover Ratio, Average Collection Period.

The International journal of analytical and experimental modal analysis

Volume XI, Issue X, October/2019

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INTRODUCTION

Financial ratios are helpful indicators to measure a company’s financial performance

and to make a financial decision. The present of the study aims to analyze the liquidity

position of select tyre companies in India. Liquidity Management place on a vital role in the

development and profitability of the entire business. A company can meet its current

obligations within a year. The liquidity position of a company may be kept in deferent forms,

current assets for inventories, cash at the bank balance and current liability for sundry

creditors, bank overdraft. Cash balances in current account provide the highest degree of

liquidity a company can maintain liquidity position if it keeps the assets it helps to easy to

sell quickly within minimum transaction cost and loss in value. Liquidity and its management

determine to grate extern the growth and profitability of the company. The company to

having inadequate liquidity, a company was not performing normal day-to-day business

operations. Liquidity is the most important financial factor in determining whether a

company performs well or not and also it is helpful to consider working capital management

of a company. Liquidity for measuring company ability functions of current assets to current

liabilities. The importance of liquidity management is to determine the actual financial

strength and weakness of the firm and it is also determined the profit of the company. The

vital role of maintaining a working capital is most required for entire business day-to-day

activities and to ensure the nonstop working to meets its current obligations. In this study to

analyze the most important factor to determine both internal and external factors because

liquidity is directly linked to day-to-day business operation.

REVIEW OF LITERATURE

A number of studies have been made on an analysis of the liquidity management of

select tyre companies in India. A reference to these earlier studies will be relevant in the

conducts of frame the present study.

Researcher has shown earlier that liquidity management position to tyre companies in

India. Amalendu Nhunia (2010), Shweta Mehrotra (2013, Ajanthan. A (2013), Sunil M

(2014), Partha Ghosh (2014), Tanwar and Chowhan (2014), Balachandran. B (2015,

Ariful Hoque et al, (2015) in their studies have established this aspects.

Anil Soni (2012) examine the ‘working capital management with special reference to

Vardhman Textiles limited’ in this study based on secondary data and the data has been

collected from annual reports of the company. The period of five years from 2006- 07 to



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2010-11 audited annual reports, its tools for used in ratio analysis and correlation. Therefore

current ratio of the firm maintaining is good way during the overall study period, at the same

time the firm also managing current assets. The quick ratio of the firm has down from during

the study period. There correlation shows that no relationship between liquidity and

profitability.

Dhevika , Latasri and Gayathri (2013) carried on ‘a study on financial performance

analysis of city union bank, in this study based on secondary data and the period was covered

for five years from 2007-08 to 2011-12 published annual reports respective bank. The study

to use in descriptive analysis and the result was found out the ratio analysis during the study

period. During the study period the financial performance was better and the city union bank

are able to maintain optimal level of cost position. The bank also faces the capital expenditure

and high level of working capital commitments.

Amalendu Bhunia and Sudeepta Das (2014) analyses ‘Liquidity position of private

sector textile companies in India – A case study’ the present study based on secondary data

and the was collected from CMIE prowess data base. The period of this study from 2008 to

2013 published annual reports, its tools for used analysis in the form of application of

descriptive statistics and liquidity ratios are to be used. In this point of view the statement of

result of profitability.

Vekateswarlu P and Krishna Reddy B (2015) in her article on ‘liquidity

management of select cement companies of Andhra Pradesh-a comparative study’ there are

six cement companies selected from Andhra Pradesh based on purposive sampling method.

The period this study for ten years from 2003-04 to 2012-13 and through a information

collected for secondary data from annual reports, journals, related other research papers. The

researcher was used to tools for financial ratios analysis and Motaal’s ultimate rank test.

During the study period the report conclude about current assets and current liabilities at the

similar rate and the working capital of the company is negative performance. At the same

time company was maintain good profits and good return on capital.

Pritesh C. Panchal (2016) investigated as ‘liquidity analysis of selected

infrastructure companies – a comparative study. In this study based on secondary data are

used and the period was selected for a five years from 2011 to 2015 published annual reports.

It is collected on the basis of availability of the data and the sample was selected as three



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companies. The researcher was used tools for analysis like ratio analysis during the all the

study period. Hence, the liquidity position of the IRB is best better than Reliance

infrastructure Ltd and Japee infrastructure ltd. During the overall study period the IRB is

performance is good.

Research Gap

The researcher to refer valuable reviewed based on financial statement analysis in my

view no researcher cannot study about in this study area particularly liquidity management

for the Indian tyre companies period of 2007-08 to 2017-18. All the reviews mostly studied

other manufacturing companies, telecom sectors and banking sectors etc., it is this stud to

focus top seven Indian tyre companies to analyze one field of financial performance like

liquidity ratios.

Statement of the problem

Liquidity is the ability of a firm to meet its current financial obligation during the

short term period time and to maintain long term debt. It is one of the financial factors to

determining the actual financial position of all type of manufacturing companies and this

ratio helps to actual results of assets and liability position of the companies. In this study to

taken to know about liquidity position of select tyre companies in India. Because of the more

financial problem going on all manufacturing sector particularly the automobile industry. In

this way of tyre industry on the part of the automobile industry, a tyre is the main factor to

fulfil all types of automobile vehicles. It is the right time to analyze the main part of the

liquidity position of the select tyre companies in India.

OBJECTIVES OF THE STUDY

The main objectives of the present study are:

1. To analysis the working capital performance of select tyre companies in India.

2. To examine the liquidity management of the select tyre companies in India.

RESEARCH METHODOLOGY

Sources of Data

The sources of secondary data will be used for the purpose of the study. The sources

of secondary data collected from the annual reports of select tyre companies from 2008-2009



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to 2017-2018, published and unpublished research papers and dissertation, books, journals

articles, reports, related research papers, websites etc.

Selection of Sample

The present study deals with the working capital management and the liquidity

management of tyre companies in India. In this study was made an attempt to select the top

seven tyre manufacturing companies in India were listed in the BSE and the NSE based on

market capitalization.

Scope of the Study

The present study deals with the working capital management and the liquidity

management of tyre companies in India. To undertake the most relevant and important raw

material producer restricted to the above mentioned seven select tyre companies in India.

Period of the Study

The present study period covers a ten years from 2008-2009 to 2017-2018. The

analysis of variables to relating the working capital management select tyre companies in

India. In order to analyse the effect of working capital components on liquidity management

of tyre companies in India.

Tools for Analysis

The data collected will be analysed in a closely related operations according to the

nature of the information by using a various tools and techniques, both accounting tools of

liquidity ratios and statistical tools for mean, standard deviation, coefficient of variation and

compound annual growth rate (CAGR).

LIMITATION OF THE STUDY

The present study based on seven companies of the tyre industry in India that also

drawn from the companies listed in the BSE and NSE.

Analysis and Results

In order to study the liquidity position of select tyre companies, the researcher have

calculated Working Capital, Current Ratio, Liquid Ratio, Absolute Liquid Ratio and other

related ratios were calculated and depicted in the following tables:

Working capital

A calculation of the working capital is current assets mines current liabilities. The

following Table shows the working capital of select tyre companies in India.

Working Capital = Current Assets – Current Liabilities



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Table 1 Working Capital of Select Tyre Companies in India

(₹. in crore)

Year MRF BKT Apollo JK CEAT TVS GOOD

YEAR

2008-09 801.21 546.15 580.58 148.79 330.02 161.99 96.95

2009-10 1309.58 702.36 525.81 22.78 277.81 151.84 108.03

2010-11 1753.02 992.15 791.76 245.82 148.23 226.26 136.25

2011-12 1654.87 512.22 -311.54 -218.52 -333.45 47.80 150.02

2012-13 2352.03 581.74 -57.98 -201.03 -430.17 37.48 199.63

2013-14 2714.89 -3442.55 -205.58 -120.18 -193.79 16.31 259.45

2014-15 3086.97 -3275.03 -71.03 -235.85 258.76 5.60 371.05

2015-16 3086.97 86.00 149.65 -107.58 254.10 38.98 371.05

2016-17 2711.27 103.40 279.36 -56.70 485.96 18.30 451.64

2017-18 3136.41 587.15 1805.25 -568.21 11.57 16.92 524.51

Mean 2260.72 -260.64 348.63 -109.07 80.90 72.15 266.86

SD 830.63 1654.53 626.46 226.08 306.27 77.86 153.34

CV% 36.74 -634.79 179.69 -207.28 378.56 107.92 57.46

CAGR% 14.62 0.73 12.01 0.00 -28.47 -20.22 96.95

Source: Computed from Annual Reports

Table 1 shows that working capital of MRF tyre Ltd. Was positive nature during the

study period. It is ranged from ₹. 801.21 crore to ₹. 3136.41crore. The results indicating SD

and CV is the moderate level deviation its mean value. A compound annual growth rate is

14.62 per cent. The working capital of Balkrishna industries Ltd. was negative nature during

the study period. It is ranged from ₹. 546.15 crore to ₹. 587.15 crore. The results indicating a

low level deviation its mean value. A compound annual growth rate is 0.73 per cent. A

working capital of Apollo tyre Ltd. Was positive nature during the study period but 2011-12

to 2014-15 the working capital range was negative performance. It is ranged from ₹. 580.58

crore to ₹. 1805.25 crore. The result of SD and CV is indicating a moderate level deviation its

mean value. The working capital of JK tyre & Industries Ltd. was negative trend during the

study period it’s ranged from ₹.148.79 crore to ₹. -568.21crore. The result of SD and CV is a

negative deviation from the mean value. There is no compound annual growth rate (CAGR).

The working capital of CEAT Ltd. was positive nature during the study period but during

2011-12 to 2013-14 is the negative performance. The working capital ranged from ₹. 330.02

crore to ₹. 11.57 crore. It is result of SD and CV is moderate level deviation from its mean

value. There is a negative growth of compound annual growth rate. The working capital of



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TVS srichakra Ltd. was positive nature during the period. It is range from ₹. 161.99 crore to

₹.16.92 crore and the result of SD and CV is moderate level deviation its mean value. A

working capital performance of Good year Ltd. was Positive nature during the study period.

It is ranged from ₹. 96.95 crore to ₹. 524.51 crore and the result of SD and CV is indicating a

moderate level of deviation its mean value.

Liquidity Ratio

Liquidity ratio is to measure the company’s ability to meet its short-term obligations.

It consists of comparing the short-term debts to short-term resources available to pay those

debts. The liquidity of select tyre companies has been examined with the help of the

important of liquidity ratios and the results presented as follows:

Current Ratio

The current ratio is the ratio. Those assets easy to the way of convert cash within a

short period of time. The ratio is calculated as current assets divided by current liabilities.

The standard ratio of 2:1is considered as a measuring scale of the adequacy of current assets.

The following table is given by the current ratios of the select tyre companies in India.

Table 2 Current Ratio of Select Tyre Companies in India

(Times)


YEAR

2008-09 2.36 7.45 2.26 1.20 1.67 4.20 1.46

2009-10 2.65 7.11 1.76 1.02 1.37 1.93 1.40

2010-11 2.26 5.15 1.77 1.20 1.14 1.89 1.41

2011-12 1.80 1.50 0.86 0.90 0.81 1.10 1.42

2012-13 2.01 1.67 0.97 0.91 0.76 1.08 1.50

2013-14 2.04 0.29 0.91 0.95 0.90 1.03 1.73

2014-15 2.07 0.38 0.97 0.91 1.17 1.01 2.33

2015-16 2.07 1.06 1.07 0.96 1.21 1.10 2.33

2016-17 1.61 1.06 1.10 0.98 1.36 1.03 2.28

2017-18 1.69 1.42 1.59 0.83 1.01 1.03 2.13

Mean 2.06 2.71 1.32 0.99 1.14 1.54 1.80

SD 0.32 2.76 0.48 0.12 0.28 1.00 0.42

CV% 15.34 101.96 36.51 12.42 24.92 65.05 23.12

Source: Computed annual reports

Table 2 shows that current ratio of MRF Ltd. was satisfactory during the study period.

The mean value of ratio was 2.06:1times and the result of SD and CV is indicting a low level



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deviation its mean value. Liquidity ratio of the company was satisfactory. The current ratio of

Balkrishna Industries Ltd. was satisfactory during the study period. The mean value of ratio is

2.71:1 times and result of SD and CV is indicating low level deviation from its mean value. A

liquidity position of the company was satisfactory. A current ratio of Apollo tyre Ltd. was not

satisfactory during the study period. The mean value of ratio is 1.32:1 times and its result of

SD and CV is indicating a low level deviation from its mean value. The current ratio of JK

tyre & industries Ltd. was not satisfactory during the study period. The mean value of ratio is

0.99:1 times and its result of SD and CV is indicating a very low level deviation from its

mean value. A current ratio of CEAT Ltd. was not satisfactory during the study period. The

mean value of ratio is 1.14:1 times. Its result of SD and CV is indicating a low level deviation

from its mean value. The current ratio of TVS Srichakra Ltd. was not satisfactory during the

study period. The mean value of ratio is 1.54:1 times and its result of SD and CV is indicating

a low level deviation from its mean value. The current ratio of Good Year Ltd. was not


SD and CV is indicating a low level deviation from its mean value.

Quick Ratio

It means the ratio of quick assets to current liabilities. It is also called as liquidity ratio

or acid-test ratio. It is calculated by dividing the total of the quick assets by the total current

liabilities. It is a fairly stringent measure of liquidity. The standard ratio of 1:1is considered

as a measuring scale of the adequacy of Quick assets. The following table to given quick ratio

of select tyre companies in India.

Table 3 Quick Ratio of Select Tyre Companies in India

(Times)


YEAR

2008-09 1.26 6.00 1.36 0.65 1.23 2.91 1.21

2009-10 1.25 5.35 0.96 0.56 0.83 0.98 1.17

2010-11 1.16 3.43 0.67 0.64 0.61 0.85 1.15

2011-12 1.00 1.03 0.34 0.60 0.47 0.48 1.13

2012-13 1.24 1.17 0.34 0.56 0.47 0.56 1.25

2013-14 1.35 0.19 0.34 0.65 0.51 0.61 1.38

2014-15 1.42 0.31 0.40 0.64 0.75 0.50 1.87

2015-16 1.42 0.87 0.60 0.68 0.69 0.57 1.87

2016-17 1.07 0.78 0.96 0.68 0.67 0.42 1.80

2017-18 1.21 0.99 1.03 0.53 0.57 0.51 1.77



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Mean 1.24 2.01 0.70 0.62 0.68 0.84 1.46

SD 0.14 2.13 0.36 0.05 0.23 0.75 0.32

CV% 11.03 105.89 51.39 8.70 33.28 89.40 22.14


Table 3 shows that quick ratio of MRF Ltd. was satisfactory during the study period.

The mean value of ratio was 1.24:1times and the result of SD and CV is indicting a low level

deviation its mean value. The quick ratio of Balkrishna Industries Ltd. was satisfactory

during the study period. The mean value of ratio is 2.01:1 times and result of SD and CV is

indicating moderate level deviation from its mean value. A quick ratio of Apollo tyre Ltd.

was not satisfactory during the study period. The mean value of ratio is 0.70:1 times and its

result of SD and CV is indicating a low level deviation from its mean value. The quick ratio

of JK tyre & industries Ltd. was not satisfactory during the study period. The mean value of

ratio is 0.62:1 times and its result of SD and CV is indicating a very low level deviation from

its mean value. A quick ratio of CEAT Ltd. was not satisfactory during the study period. The

mean value of ratio is 0.68:1 times. Its result of SD and CV is indicating a low level deviation

from its mean value. The quick ratio of TVS Srichakra Ltd. was not satisfactory during the

study period. The mean value of ratio is 0.84:1 times and its result of SD and CV is indicating

a low level deviation from its mean value. The quick ratio of Good Year Ltd. was not


SD and CV is indicating a low level deviation from its mean value.

Absolute liquid ratio or Cash position ratio

It is refers to the absolute liquid assets to current liabilities. The satisfactory level of

this ratio is 0.50:1. The ratio was calculated as, Absolute Liquid Ratio = Cash and bank

balance + Market securities / Current Liabilities. A following table to analyse absolute liquid

ratio of select tyre companies in India.

Table 4 Absolute Liquid Ratio of Select Tyre Companies in India

(Times)


YEAR

2008-09 0.10 0.13 0.74 0.06 0.41 0.26 0.75

2009-10 0.07 0.04 0.37 0.06 0.19 0.05 0.81

2010-11 0.04 0.05 0.14 0.07 0.04 0.02 0.76

2011-12 0.03 0.35 0.05 0.04 0.02 0.01 0.67

2012-13 0.14 0.31 0.09 0.04 0.05 0.09 0.79

2013-14 0.27 0.00 0.10 0.07 0.06 0.02 1.02

2014-15 0.03 0.08 0.10 0.04 0.04 0.02 1.19



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2015-16 0.03 0.20 0.13 0.02 0.02 0.03 1.19

2016-17 0.06 0.07 0.05 0.02 0.00 0.01 1.28

2017-18 0.03 0.13 0.08 0.02 0.04 0.02 1.24

Mean 0.08 0.13 0.19 0.04 0.09 0.05 0.97

SD 0.08 0.12 0.22 0.02 0.13 0.08 0.24

CV% 96.20 86.03 116.73 44.33 144.61 140.29 24.65


Table 4 shows that absolute liquid ratio of MRF Ltd. was not satisfactory during the

study period. The mean value of ratio was 0.08:1times and the result of SD and CV is

indicting a low level deviation its mean value. The absolute liquid ratio of Balkrishna

Industries Ltd. was not satisfactory during the study period. The mean value of ratio is 0.12:1

times and result of SD and CV is indicating moderate level deviation from its mean value. An

absolute liquid ratio of Apollo tyre Ltd. was not satisfactory during the study period. The

mean value of ratio is 0.19:1 times and its result of SD and CV is indicating a low level

deviation from its mean value. The quick ratio of JK tyre & industries Ltd. was not


SD and CV is indicating a very low level deviation from its mean value. An absolute liquid

ratio of CEAT Ltd. was not satisfactory during the study period. The mean value of ratio is

0.09:1 times. Its result of SD and CV is indicating a low level deviation from its mean value.

The quick ratio of TVS Srichakra Ltd. was not satisfactory during the study periodss. The

mean value of ratio is 0.84:1 times and its result of SD and CV is indicating a low level

deviation from its mean value. The quick ratio of Good Year Ltd. was not satisfactory during

the study period. The mean value of ratio is 1.80:1 times and its result of SD and CV is

indicating a low level deviation from its mean value.

Debtors’ turnover ratio

Debtor’s turnover ratio its measure the total debtor’s to credit sales of the year. The

ratio was calculated as total debtors divided by the credit sales. A following table to analyse

debtor’s turnover ratio of select tyre companies in India.

Table 5 shows the Debtors Turnover Ratio of select Tyre Companies in India

(Times)


YEAR

2008-09 9.76 5.72 46.64 11.08 7.89 5.41 10.29

2009-10 9.18 5.77 36.62 7.54 7.46 5.89 13.28

2010-11 7.44 6.15 26.88 6.74 7.40 6.24 11.57

2011-12 12.64 5.88 22.42 6.51 7.30 7.40 9.60



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2012-13 11.88 6.32 31.15 6.55 7.68 7.92 9.49

2013-14 11.58 5.78 35.79 5.53 7.48 6.27 14.08

2014-15 13.15 6.28 27.74 5.40 8.38 11.37 11.75

2015-16 13.15 5.86 29.43 5.42 9.51 12.04 11.75

2016-17 8.79 9.19 25.37 4.50 10.77 10.47 10.35

2017-18 7.62 8.89 18.88 5.10 8.89 9.04 8.19

Mean 10.52 6.58 30.09 6.44 8.28 8.20 11.04

SD 2.22 1.31 7.98 1.87 1.14 2.40 1.80

CV% 21.14% 19.97% 26.52% 29.01% 13.75% 29.30% 16.33%


Table 5 shows that debtors turnover ratio of MRF Ltd. was low during the study

period. The mean value of ratio was 10.52 times and the result of SD and CV is indicting a

low level deviation its mean value. The debtor turnover ratio of Balkrishna Industries Ltd.

was fluctuated during the study period. The mean value of ratio is 6.58 times and result of SD

and CV is indicating low level deviation from its mean value. A debtor turnover ratio of

Apollo tyre Ltd. was low during the study period. The mean value of ratio is 30.09 times and

its result of SD and CV is indicating a low level deviation from its mean value. The debtor

turnover ratio of JK tyre & industries Ltd. was low during the study period. The mean value

of ratio is 6.44 times and its result of SD and CV is indicating a low level deviation from its

mean value. A debtor turnover ratio of CEAT Ltd. was low during the study period. The

mean value of ratio is 8.28 times. Its result of SD and CV is indicating a low level deviation

from its mean value. The debtor turnover ratio of TVS Srichakra Ltd. was low satisfactory

during the study period. The mean value of ratio is 8.20 times and its result of SD and CV is

indicating a moderate level deviation from its mean value. The debtor turnover ratio of Good

Year Ltd. was fluctuating during the study period. The mean value of ratio is 11.04 times and

its result of SD and CV is indicating a low level deviation from its mean value.

Average Collection Period

Table 6 shows the Average Collection Period of select Tyre Companies in India

(Times)


YEAR

2008-09 37.38 63.85 7.83 32.94 46.28 67.50 35.48

2009-10 39.74 63.24 9.97 48.39 48.92 61.95 27.48

2010-11 49.04 59.36 13.58 54.17 49.31 58.50 31.54

2011-12 28.89 62.08 16.28 56.10 50.00 49.30 38.04

2012-13 30.73 57.71 11.72 55.74 47.54 46.10 38.46



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2013-14 31.52 63.11 10.20 66.01 48.79 58.19 25.92

2014-15 27.76 58.12 13.16 67.58 43.53 32.11 31.06

2015-16 27.76 62.30 12.40 67.30 38.40 30.32 31.06

2016-17 41.52 39.71 14.39 81.18 33.89 34.87 35.27

2017-18 47.92 41.04 19.33 71.56 41.06 40.38 44.56

Mean 36.23 57.05 12.88 60.10 44.77 47.92 33.89

SD 8.11 9.06 3.31 13.60 5.43 13.29 5.60

CV% 22.39 15.87% 25.72 22.62% 12.13% 27.73% 16.54%


Table 5 shows that average collection period of MRF Ltd. was fluctuating during the

study period. Its mean value of 36.23 days and the result of SD and CV is indicting a

moderate level deviation its mean value. The average collection period of Balkrishna

Industries Ltd. was fluctuated during the study period. Its mean value of 57.05 days and result

of SD and CV is indicating moderate level deviation from its mean value. An average

collection period of Apollo tyre Ltd. was low during the study period. Its mean value of 12.88

days and its result of SD and CV are indicating a low level deviation from its mean value.

The average collection period of JK tyre & industries Ltd. was low during the study period.

Its mean value of 60.10 days and its result of SD and CV are indicating a moderate level

deviation from its mean value. An average collection period of CEAT Ltd. was increase

during the study period. Its mean value is 44.77 days and a result of SD and CV is indicating

a low level deviation from its mean value. The average collection period of TVS Srichakra

Ltd. was fluctuating during the study period. The mean value is 47.92 days and its result of

SD and CV is indicating a moderate level deviation from its mean value. The average

collection period of Good Year Ltd. was fluctuating during the study period. Its mean value is

33.89 days and its result of SD and CV is indicating a moderate level deviation from its mean

value.

CONCLUSIONS

Tyre is the most important unavoidable raw material of all types of automobile

vehicles. It is the way of Indian tyre industry major role in quality tyres producer and to

supply a product over the world. A researcher has to analyze the liquidity management of

select tyre companies in India. The liquidity position of MRF Tyre Ltd, Balkrishna Industries

Ltd. Apollo tyre Ltd. was satisfactory and other rest of the company liquidity position was

not satisfactory. At the same time the cash position of the Good year Ltd. was satisfactory

rest of the companies was not maintain at minimum level of standard norms 0.50:1 times.

Hence during the study period 2016-17 to 2017-18 all the tyre manufacturing companies to



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slightly down the assets position. The average collection period of Apollo tyre Ltd. was good

performance other rest of the companies to be not performing the earning period of day is

high.

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4. Anil Soni (2012), ‘Working Capital Management with Special Reference to

Vardhman Textiles Ltd’ International Journal of Research in IT and

Management, Vol. 2, No. 5, Pp. 99-106

5. Amalendu Bhunia (2014), ‘Liquidity Position of Private Sector Textile

Companies in India-A Case Study,’ Scholars Journal of Economics, Business and

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