PROJECT REPORT

A STUDY ON WORKING CAPITAL MANAGEMENT ON

BOSCH

SUBMITTED BY
KS SREERAG
231177

UNDER THE GUIDENCE OF

PROF. JEEVITHA
DEPARTMENT OF FINANCE

RAMAIAH INSTITUTE OF MANAGEMENT

NEW BEL ROAD, BANGALORE-560054
January 2024
 BOSCH

Robert Bosch GmbH commonly known as Bosch (stylised as BOSCH), is a German

multinational engineering and technology company headquartered in Gerlingen, Germany.
The company was founded by Robert Bosch in Stuttgart in 1886. Bosch is 94% owned by the
Robert Bosch Stiftung, a charitable institution. Although the charity is funded by owning the
vast majority of shares, it has no voting rights and is involved in health and social causes
unrelated to Bosch's business.

WORKING CAPITAL MANAGEMENT:

Working capital management is a business strategy designed to ensure that a company
operates efficiently by monitoring and using its current assets and liabilities to the best
effect.

● Working capital management requires monitoring a company's assets and liabilities

to maintain sufficient cash flow to meet its short-term operating costs and short-term
debt obligations.
● Working capital management involves tracking various ratios including the working
capital ratio, the collection ratio, and the inventory ratio.

CALCULATION OF WORKING CAPITAL:

Working Capital = Current Assets – Current Liabilities
Statement of change in working capital
Increase/
CURRENT ASSETS Mar-23 Mar-22 Decrease
1,112.1
Current Investments 690.1 0 -422.00
1,902.9 1,729.3
Inventories 0 0 173.60
1,902.9 1,526.7
Trade Receivables 0 0 376.20
2,056.9 1,705.4
Cash And Cash Equivalents 0 0 351.50
Short Term Loans And 1,060.3
Advances 0 929.9 130.40
1,223.0 1,352.8
OtherCurrentAssets 0 0 -129.80
8,836.1 8,356.2
TOTAL CURRENT ASSETS 0 0 479.90
CURRENT LIABILITIES 0.00
Short Term Borrowings 0 0 0.00
2,725.3 2,240.4
Trade Payables 0 0 484.90
1,158.6
Other Current Liabilities 0 945.5 213.10
1,139.6 1,119.8
Short Term Provisions 0 0 19.80
5,023.5 4,305.7
TOTAL CURRENT LIABILITIES 0 0 717.80
3,812.6 4,050.5
Working Capital 0 0 -237.90

Interpretation
The company's short-term assets increased, but its short-term liabilities increased even more,
resulting in a decrease in working capital. This might indicate a potential challenge in managing
short-term obligations.

Statement of change in working capital:

Increase/
CURRENT ASSETS Mar-21 Mar-20 Decrease
1,727.6
Current Investments 0 296.8 1,430.80
1,298.5 1,115.9
Inventories 0 0 182.60
1,389.4 1,413.0
Trade Receivables 0 0 -23.60
 2,450.5 2,256.0
Cash And Cash Equivalents 0 0 194.50
Short Term Loans And
Advances 525.5 609.2 -83.70
1,370.7 1,328.3
OtherCurrentAssets 0 0 42.40
8,762.2 7,019.2
TOTAL CURRENT ASSETS 0 0 1,743.00
CURRENT LIABILITIES 0.00
Short Term Borrowings 0 0 0.00
2,223.0 1,605.0
Trade Payables 0 0 618.00
1,195.8
Other Current Liabilities 0 772.9 422.90
1,073.1 1,291.1
Short Term Provisions 0 0 -218.00
4,491.9 3,669.0
TOTAL CURRENT LIABILITIES 0 0 822.90
4,270.3 3,350.2
Working Capital 0 0 920.10

Interpretation
The company experienced a substantial increase in its short-term assets, especially in investments.
Although there was an increase in short-term liabilities, the overall working capital improved,
indicating better liquidity and ability to cover short-term obligations.

Statement of change in working capital:

Increase/
CURRENT ASSETS Mar-20 Mar-19 Decrease
Current Investments 296.8 237.1 59.70
1,115.9 1,444.3
Inventories 0 0 -328.40
1,413.0 1,567.5
Trade Receivables 0 0 -154.50
2,256.0 1,252.7
Cash And Cash Equivalents 0 0 1,003.30
Short Term Loans And
Advances 609.2 458.7 150.50
1,328.3 1,482.8
OtherCurrentAssets 0 0 -154.50
7,019.2 6,443.1
TOTAL CURRENT ASSETS 0 0 576.10
CURRENT LIABILITIES 0.00
Short Term Borrowings 0 0 0.00
Trade Payables 1,605.0 1,577.5 27.50
 0 0
Other Current Liabilities 772.9 878.7 -105.80
1,291.1
Short Term Provisions 0 774.9 516.20
3,669.0 3,231.1
TOTAL CURRENT LIABILITIES 0 0 437.90
3,350.2 3,212.0
Working Capital 0 0 138.20

Interpretation
the company experienced a mixed change in its current assets, with significant increases in cash and
decreases in inventories and receivables. There was also an increase in short-term liabilities, resulting
in a modest increase in working capital.

CURRENT RATIO:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other
payables.
Current Ratio= Current assets
Current liabilities

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Current Ratio 1.74 1.71 1.59 1.84 1.91

LIQUID RATIO:

A liquidity ratio is a type of financial ratio used to determine a company’s ability to pay its
short-term debt obligations. The metric helps determine if a company can use its current, or
liquid, assets to cover its current liabilities.

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Quick Ratio 1.31 1.25 1.23 1.45 1.38

WORKING CAPITAL TURNOVER RATIO:

Working capital turnover is a ratio that quantifies the proportion of net sales to working
capital, and it measures how efficiently a business turns its working capital into increased
sales numbers

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19
Working Capital 0.2554 0.3438 0.4394 0.3404 0.2658