I am particularly concerned about the increasing receivables and increasing inventories. Since the last 5 years there has been a steady but sustained increase from 16 days to 39 days in inventory and from 39 days to 51 days in receivables.
In March 2016 too, receivables have shot up to 72 days and inventories have increased too to 42 days despite flat sales growth.
Typical payment terms of auto companies should not exceed 30-45 days. Why this excessive receivables?