Working Capital.docx

Year 2014 2015 2016 2017 2018

Working Capital( Wc) Analysis WC= Current Assets- Current liabilities WC=123.91-190.64=(66.73) WC=106.281-152.826=(46.545) WC=90.564-125.002=(34.368) WC=116.152-91.301=24.851 WC=

Interpretation:

According to my interpretation from the above data, I found that the working capital of Reliance Industries Ltd of Mar-14 is Rs (66.73) , Mar-15 is Rs (46.546) and in Mar-16 is Rs (34.386) and in Mar-17 Rs 24.851 and in Mar-18 Rs It show that company can not use more working capital in first year Mar-14 than next two year continue reduce the working capital in Mar-15 and Mar16 respectively and last three year working capital continue in negative process then Mar-17-18 Working capital came positive that was good for company If working capital is more used in company it means, It show that company is in growing stage. Hence the company's sales is more But if the w.c is less in company, it show that company in not in growing stage and sales is also less. Compare to previous year Mar-14 company is not growing stage and selling of its products per unit is not increased and in Mar-15-16 both year company growing stage is down and selling of its product also decreased but in Mar-17-18 Company is growing stage and its selling of its products increased because in this year company can use more working capital compare to previous year.