DEBTORS TURNOVER IN AUTOMOBILE MANUFACTURING AT MAHINDRA AND MAHINDRA

Abstract

The debtor turnover ratio is an important financial metric that measures the effectiveness of a company's credit sales and collection activities. This ratio is critical for evaluating working capital and liquidity management in the car manufacturing sector, as credit influences sales primarily through financing methods and dealer networks. This inquiry focuses on the debtor turnover performance of Mahindra & Mahindra Ltd., one of India's most significant vehicle manufacturers. The goal is to assess the company's ability to convert receivables into cash in order to sustain positive cash flows. The research draws a link between Mahindra & Mahindra's most recent receivables management measures, industry standards, and operational strategy. A lower percentage may indicate that recovery methods are inadequate or that loan terms are extended, whereas a larger ratio shows that credit standards are efficient and collection is accelerated. By evaluating these developments, the report provides insight into how Mahindra & Mahindra balances financial discipline with credit sales growth. The findings highlight the relevance of debtor management optimization in improving overall financial performance, reducing credit risk, and increasing liquidity in the competitive automobile business.