Mba Project on Funds Management Overview:
The PHOENEX MOTORS net working capital is satisfactory between the years since it shows increasing trend; but after that it is in declining position Profit Margin of PHOENEX MOTORS is decreasing and showing negative profit because there is increase in the price of copper The PHOENEX MOTORS Net Working Capital Ratio is satisfactory.
The Operating Ratio of PHOENEX MOTORS isn’t satisfactory. Due to increase in cost of production, this ratio is decreasing. So the has to reduce its office administration expenses Improve position funds should be utilized properly. Better Awareness to increase the sales is suggested. Cost cut down mechanics can be employed. Better production technique can be employed.
- Net working capital is very low; it is suggested to maintain sufficient net working capital.
- Effective inventory management is needed in the company
- The firm should increase investment in current assets to create sufficient securities for the current liabilities
- For the improving the financial performance of the company the following suggestions are made.
- In order to reduce the outside borrowings in the company has to acquire. The capital from equity sources. Keeping in view the debt equity the proportion as normal.