Ricoh Fraud

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- Creditors turnover ratio:

- (2011-12 to 2012-13) The creditor turnover ratio has decreased from 3.18 to 2.29 (average payable period has increased from 115 days to 159 days)

- (2012-13 to 2013-14) The creditor turnover ratio has increased from 2.29 to 2.58 (average payable period has decreased from 159 days to 141 days)

- (2013-14 to 2014-15) The creditor turnover ratio has significantly increased from 2.58 to 3.62 (average payable period has significantly decreased from 141 days to 101 days)

Thus, average payable period has decreased 115 to 101 on the overall period. Especially, when the payable period had been increasing from 2011 to 2014, it significantly declined from 141 days to 101 days indicating a loss of creditor trust over the company. This could be attributed to the fact that there were rumors and speculations that the company is taking a lot of short term debts and it may not be able to pay them off. Also, that the company is not correctly following the accounting principle. Further, there also has been an effect of decrease in forward contract payable as per accounting standards-11 (Accounting for the effects of changes in foreign exchange rates).

- Working Capital turnover ratio:

- (2011-12 to 2012-13) The working capital turnover ratio has increased from 8.25 to 43.01

- (2012-13 to 2013-14) The working capital turnover ratio has increased from 43.01 to 71.63

- (2013-14 to 2014-15) The working capital turnover ratio has significantly decreased from 71.63 to 6.27

Working capital turnover ratio increased from 8.25 to 71.63 from 2011 to 2014 due to increase in sales and a decrease in working capital of the company. This indicates that the company has effectively utilized by the company. However the decline in the year 2014 -15 is attributed to a significant increase in working capital.

- Total assets turnover ratio:

This ratio has increased from 1.14 times in 2011-12 to 1.26 times in 2014-15. This increase can be attributed to proportional increase in sales and total assets.

- Fixed asset turnover ratio:

Fixed asset turnover ratio increased from 5.53 times in 2011-12 to 8.07 times in 2013-14. This increase is due to significant increase in sales. However, in 2014-15, this ratio significantly increased to 14.3 times because of decreased in fixed assets and increase in sales. These observations can be attributed to:

- Sale of fixed assets amounting to 136 crore

- Slight effect due to effect of change in estimated useful life

- Intangible assets reduced by 400 crores