Scribd Logo
Upload

Welcome to Scribd!

  • Sample Research Methodology - Working Capital

    Uploaded by

    Piyush Kasbekar
    100 views2 pages
    This research design document outlines the justification, objectives, scope, data sources, limitations, assumptions, and tools to be used for a study of Crompton Greaves Ltd's working capital over 3 financial years from 2016-2019. The objectives are to study the company's financial position, short-term solvency, whether it is over-trading or under-trading, operating cycle, and sources of working capital financing. Primary data will be collected through employee interviews and secondary data from annual reports and financial statements. Limitations include reliance on secondary data and time constraints limiting detailed analysis. Ratio analysis tools to be used include current, liquid, working capital turnover, inventory turnover, debtors turnover, and creditors turnover ratios.

    Original Description:

    Original Title

    Sample Research Methodology_working capital.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This research design document outlines the justification, objectives, scope, data sources, limitations, assumptions, and tools to be used for a study of Crompton Greaves Ltd's working capital over 3 financial years from 2016-2019. The objectives are to study the company's financial position, short-term solvency, whether it is over-trading or under-trading, operating cycle, and sources of working capital financing. Primary data will be collected through employee interviews and secondary data from annual reports and financial statements. Limitations include reliance on secondary data and time constraints limiting detailed analysis. Ratio analysis tools to be used include current, liquid, working capital turnover, inventory turnover, debtors turnover, and creditors turnover ratios.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    100 views2 pages

    Sample Research Methodology - Working Capital

    Uploaded by

    Piyush Kasbekar
    This research design document outlines the justification, objectives, scope, data sources, limitations, assumptions, and tools to be used for a study of Crompton Greaves Ltd's working capital over 3 financial years from 2016-2019. The objectives are to study the company's financial position, short-term solvency, whether it is over-trading or under-trading, operating cycle, and sources of working capital financing. Primary data will be collected through employee interviews and secondary data from annual reports and financial statements. Limitations include reliance on secondary data and time constraints limiting detailed analysis. Ratio analysis tools to be used include current, liquid, working capital turnover, inventory turnover, debtors turnover, and creditors turnover ratios.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Note: Consider the format only.

    Refer it as an example…

    RESEARCH DESIGN
     Justification of Topic:
    Sales are not converted into cash immediately. There is ‘a time lag’ to get cash converted into
    cash again. Hence, we require working capital (during this time lag) to carry out day-to-day
    operations and activities. Due to operating cycle funds are blocked in raw materials, w-i-p,
    finished goods, debtors…etc. Thus, a company requires working capital to carry out its daily
    operations. We will hardly find any firm which does not require any amount of working
    capital for its normal operations.

     Objectives:
    1. To study working capital of Crompton Greaves Ltd.
    2. To examine the company’s financial position and short term solvency with the
    help of relevant ratios.
    3. To investigate whether the company is under-trading or over-trading.
    4. To analyze operating cycle of the company.
    5. To study the sources of financing working capital.

     Scope of Study:
    Scope of study is limited to the 3 financial years i.e.
    1. 2016-2017,
    2. 2017-2018,
    3. 2018-2019
    Projections or estimation of requirement of working capital is done for coming 2
    years. i.e.
    4. 2019-2020 &
    5. 2020-2021

     Type of Data and Source of Data:


    Primary data: collected from –
     Personal discussions with employees and management of the
    company.

    Secondary data: collected from different sources-


     Balance sheet of the company
     Annual reports of the company
     From the web site of the company.

     Limitations:
    1. Data used is acquired from secondary resources; hence has certain limitations.
    2. Confidential data is not provided and allowed to use.
    1
    3. Time constraint- time duration given is limited. So, detailed analysis is not
    possible.
    4. Financial data shows position of the company on a particular date only.
    5. Data in the reports is assumed to be true.
    6. Effect of inflation is not taken into consideration.

     Assumptions:
    o The data provided by the company’s employees is assumed to be true.
    o The data is not subject to change afterwards.

     Tools Used for Data Analysis:


     Percentage analysis
     Graphical analysis
     Charts
     Ratio Analysis:
    1. Current Ratio
    2. Liquid Ratio/ Quick Ratio
    3. Absolute liquidity ratio
    4. Working Capital Turnover Ratio
    5. Inventory Turnover Ratio
    6. Debtors Turnover Ratio
    7. Creditors Turnover Ratio
    8. Capital turnover ratio

    You might also like